Sponsorships vs. Donations
There is a difference between sponsorships and donations. Sponsorships are a business transaction where financial consideration is given to an organization in return for a measurable benefit, such as advertising, event participation, or signage. Donations are gifts given to an organization with no expectation of a measurable benefit to the donor.
In general, a sponsorship is not tax deductible because the sponsor is receiving a benefit from the transaction, but it may be considered as an advertising expense. A donation may be tax deductible because the donor is giving a gift. In some cases, a portion of a sponsorship may be tax deductible if the dollar amount of the sponsorship is significantly higher than the market value of the benefit that the sponsor receives. This would be handled on a case-by-case basis with the sponsor.
The Town of Morrisville will accept cash or desired goods and services as sponsorships as outlined in the Sponsorship Policy. Donations of cash, services or goods will be accepted on an as-needed basis.