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Corporate Sponsorship FAQ

The program provides development of the tools needed to generate funding from corporate donors, which can serve as an essential source of initial funding for your nonprofit. This initial funding
can provide your organization with the ability to invest in other business fundamentals, increasing
the capacity of the organization’s administration to manage the organization and expand the
reach of your mission.

Yes. The organization must be legally established. In addition, having a 501(c)(3) status or a fiscal
sponsor is necessary to offer the sponsor a tax-deductible charitable donation. However, because
you are offering your sponsors recognition for their gift, businesses may write off the amount as a
marketing expense.

To begin the process we send you a simple questionnaire to gather information on your organization, such as mission & vision, website, logo, photos, etc. Next we will setup a phone interview to collect additional information. After this we begin to design the program and documents which we will
forward for your review and approval. Finally, electronic copies of all documents and toolkits will be
provided on a CD-R for your convenience.

Overall the process can take between 10-15 days. The specific timeframe for each organization will
be dependent upon the client’s schedule, and timeliness in submitting required Information.

No. We are not licensed professional fundraisers and do not get involved in the handling or collection of donations for our clients. Our role in fundraising is limited to presenting tools and information
regarding cause marketing and corporate sponsorship programs. We can assist with free fundraising
ideas and templates for events; however the implementation is up to the organization and local
fundraising team.

No. The success of the program depends on the organization’s commitment to fulfillment of its vision, and mission. Other relevant factors includes the request amounts plus skill, training, and efforts
of the management team and volunteers.

No. The business list provided is simply a list of established businesses in the zip code area provided.
Corporate Giving is up to discretion of the business owner and we cannot in any way guarantee or
project funding from any particular business.

No. When businesses choose to participate in your online directory they are receiving a benefitthe listing in your directory- in return for their payment. Therefore this is not considered a charitable donation, but instead a purchase of a marketing service from your organization. The businesses will have the ability to write the payments off as a standard marketing expense.

The sale of advertising space, whether in print publications or on a website, is one of the most
common sources of Unrelated Business Income (UBI) generated by tax exempt entities. Because
the directory payments are made by businesses to specifically advertise their company in your
directory, instead of in sponsorship of a specific program or activity, the payments may be considered UBI by the IRS. It is important to keep in mind that UBI is allowable as an insubstantial portion of your organization’s total revenue, however if more than $1000 in UBI is generated in a
year you may need to file an additional return.

Contributions received will be exempt from federal income taxes once your organization has
been officially granted recognition of exemption under 501(c)(3). If you apply for 501 status
within 27 months of incorporation your benefits will be back dated to your date of incorporation.
Therefore, if you collect any funds after incorporation, those funds will be exempt from taxation
upon approval of your 501 status by the IRS.

Individual donors will be only be granted a charitable deduction for their contributions once your
organization has been granted 501 status. Businesses that donate through GoFundMe may have
the ability to deduct the contribution as a marketing expense prior to your 501 being approved.

Corporate sponsorship payments tend to each be in amounts smaller than grant awards, as businesses tend to dedicate fewer funds to charitable gifts than would grant making foundations
that are organized specifically for the purpose of charitable giving. However, corporate sponsorships can be much more easily acquired than grant funding. Grant makers typically prefer applicants to be well established, and to provide much more detailed documentation of their program’s impact and their administration’s capabilities. Corporate sponsorship campaigns can be
effectively used by new organizations to secure an initial source of funding, which can be invested in the organization to better position you for future success in seeking grants.