tax write off on a sponsorship

[kerrirowell]

I live in Louisiana and my daughter is a cheerleader for a high school. The sponsor received a check from a company who sponsored a cheerleader and the cheerleading sponsor gave the cheerleaders mom a check for a 1000. She said it was for getting a sponsor. Is this legal?

[davew128]

Is there a tax question here?

[FlyingRon]

"Is this legal?" refers to the subject line "tax write-off on sponsorship."

There are two forms of deductions that might apply here. If the organization that received the money qualifies as a charitable organization, the amount is a charitable contribution and the amount (less any benefit derived from making the sponsorship).

If the sponsorship nets some publicity (do you get signs, ads in the program, patches on the uniform, etc...) it might qualify as an advertising expense.

Of course, not all good deeds are recognized as deduction-worthy by the IRS.

Of course, not enough information here. The company's tax professional will need to revue the situation.

[davew128]

Originally Posted by FlyingRon

"Is this legal?" refers to the subject line "tax write-off on sponsorship."

Tax professionals don't toss around terms like "Is this legal" when dealing with tax law. The part where the mother received a $1,000 check is what is really being asked about, and isn't really a tax question.