Sponsorships

Donors are welcome to use their Donor Advised Funds (DAFs) to support our events, but please keep a few guidelines in mind:

Tickets, Tables, and Sponsorships
The full cost of attending events, including both tax-deductible and non-tax-deductible portions, must be paid directly from a donor’s personal bank account. Any remaining sponsorship amount can be covered using a DAF, provided that only incidental benefits are received by the DAF advisor or donor in return. Recognizing a donor’s name or logo in event materials is considered an incidental benefit and is allowed.

Example: For a $5,000 event sponsorship that includes a table for 10 and name/logo recognition, the donor should personally pay $1,000 for the table ($100 per ticket × 10 seats). The remaining $4,000 can be paid using a DAF.

Raffles and Auctions
While DAFs can be used for fund-a-need contributions at our events, they cannot be used to purchase raffle tickets or bid on auction items.

Donors are encouraged to consult with their financial advisors to determine what portion of their sponsorship can be funded through their DAF, based on the benefits they receive. If a donor opts to forgo all but incidental benefits, the entire sponsorship amount may be paid through their DAF.

IRS Guidelines on Charitable Contributions: The IRS provides information on the tax treatment of DAFs, what constitutes an incidental benefit, and guidelines for charitable contributions.

• Website: IRS Charitable Contribution Guidelines

The portion of your sponsorship that can be used as a tax write-off depends on the value of the benefits you receive in return for your contribution. Generally, the tax-deductible amount is the total contribution minus the fair market value of any goods or services provided in exchange. Here’s how it works:

1. Determine the Total Contribution Amount: This is the total sponsorship amount you are paying.

2. Identify the Fair Market Value (FMV) of Benefits: These benefits might include tickets to the event, meals, entertainment, or other goods and services provided to you as part of the sponsorship package.

3. Calculate the Tax-Deductible Portion: Subtract the FMV of the benefits you receive from the total contribution amount. The remaining balance is the tax-deductible portion.

Example Calculation:

• Suppose you sponsor an event for $5,000, which includes a table for 10 at the event.
• If the FMV of the table (tickets, food, and entertainment) is $1,000, then $4,000 ($5,000 total contribution - $1,000 FMV) would be tax-deductible.

Important Considerations:

• If you choose to forgo the benefits, or only receive incidental benefits (such as logo recognition or acknowledgment in event materials), the entire sponsorship amount may be tax-deductible.
• Always consult with a tax advisor to determine the exact tax-deductible amount, as IRS regulations and interpretations can vary.

For the most accurate and specific information, you should contact Oakhill Day School's Advancement Team, as they can provide detailed information regarding the fair market value of specific sponsorship levels and associated benefits.

It depends on the specific policies of your employer's matching gift program. Generally, many employers offer matching gift programs for charitable donations, but these typically apply to outright cash donations rather than event sponsorships, where the donor receives benefits in return.

Here are a few key points to consider:

1. Check Employer's Matching Gift Policy: Review your employer's matching gift program guidelines to see if event sponsorships qualify. Some programs only match gifts that don't involve receiving goods or services in return, while others may allow partial matches if the benefits received are minimal.

2. Submit the Sponsorship for Matching: If your employer's policy allows, you can submit your sponsorship donation for a match. Be prepared to provide documentation that shows the portion of the sponsorship that is tax-deductible (i.e., the amount minus the fair market value of any benefits received).

3. Consult with HR or the Matching Gift Program Administrator: If you're unsure, contact your HR department or the administrator of your employer's matching gift program for clarification. They can provide specific guidance on whether your sponsorship qualifies and how to submit it for a match.

4. Partial Matches: In some cases, if the sponsorship includes both a charitable contribution and a non-charitable benefit, the employer might match only the charitable portion.

In summary, while many employers match charitable gifts, matching policies can vary significantly. Checking with your HR department or consulting your employer's matching gift program guidelines will provide clarity on whether event sponsorships are eligible for matching funds.

Presenting Sponsor ($20,000)  $2,000 FMV

Gold Sponsor ($10,000)  $1,000 FMV

Silver Sponsor ($5,000) $1,000 FMV

Teal Sponsor ($2,500)  $200 FMV