Tax deductible value for sports banners?

Theodore VanPatten

I could not find a definitive answer to this question. Our athletic teams have a 3'x6' banner they display for sponsors. Do I deduct the cost of producing the banner for the company from the donation? Let's assume it's not a advertisement. Thanks vanpatt@scf.edu

JoAnn Strommen

I'll stick my neck out. How can you assume it's not advertising? Maybe more info on how you promoted the banners and how they are displayed would be helpful as they certainly sound like advertising/business promotion to me. Large banner, considered sponsor of athletic team...


IMO, nothing is tax deductible. Most businesses will expect to list the amount they gave as advertising expense if they are getting a banner displayed with the their company name/logo. The value they receive is not the cost of the banner, it's the promotion of their business as a sponsor.


I would ask your organization's auditor or tax advisor. I make no claims to be a tax expert but in my experience there is no tax deductible contribution in what you described.

Theodore VanPatten

The banners are hung around the baseball and softball field. I did see this document online about what is an ad and what is not an ad and these are just logos and fall under sponsorship.

JoAnn Strommen

The pdf link does not link to a document I can open. You said it falls under sponsorship - generally sponsorships are not charitable gifts. Sponsoring is a plus to the company by raising the company’s profile or increase positive awareness of the company by linking it to your athletic program.


I would consider a letter that thanks them for their support of $X. Mention their banner will be proudly displayed. Tell them to consult their tax advisor for any tax implications associated with their support of your org.

I would not say they have a tax deduction. Leave that to their decision.


From the council for nonprofits:
https://www.councilofnonprofits.org/tools-resources/corporate-sponsorship-income-taxable-or-charitable-contribution
There are quite a number of resources out there. Another is https://giveround.com/difference-sponsorship-and-a-donation/

Theodore VanPatten

I have that same info graph and in the non-taxable, ie tax deductible column in your link it says: “1. Featuring the Sponsor's name and logo in printed media, on a nonprofit's website, or on a banner at an event.” so it can be tax deductible as long as on the other column, 3. “Endorsing the sponsor, or inducing others to buy the sponsor's products or services.” Our banners are just logo and proud sponsor of SCF Athletics. So it is tax deductible as long as not an Ad, but still my question remains, it cost about $80 to produce the banner for them with a $400 sponsorship, so the tax deductible value is $320? or the whole $400.

Theodore VanPatten

FYI - Since it does cost us $80, it is like a goods or service, so have been reducing the $400, but then someone told me they could get the full $400. Hence this post?