This has probably been posted before but I am sure I missed it. We work with several organizations that provide services to low and moderate income individuals - we lend and make donations to these organizations and receive CRA credit for both. However, from time to time, we receive requests asking us to "sponsor" their annual dinner, breakfast, or some other function. Can we receive credit for these sponsorships? OR, are we better served by just donating the funds and letting them use them as they see fit?

Buying tables at annual events, golf outings, skeet shoots, etc have tax implications requiring you to document and determine the value of the services received.

For this reason as well as placing a priority on supporting programs rather than general operating overhead, I take the position I don't support events, only programs. It took a couple of years to get the nonprofits thinking in terms of programs rather than events.

If the nonprofit chooses to provide us a table or sponsorship package at a fundraiser, that is its choice.

But, you can still get investment test credit for event sponsorships that benefit a nonprofit with a primary purpose of community development.

Programs are of course more valuable than events, but events can help - they should not be a primary focus.

Most banks do list those sponsorships. You can write it up as paying the costs, which allows the organization to conduct the event and facilitate meetings with grant makers, groups they provide services to, etc. - furthering their mission.

Get information from the group on the purpose of the meeting, who will attend, expected outcome, etc.

Of course, direct contributions are more "valuable" but these kinds of sponsorships do help the organization to make or continue contacts that are key to their work.

I would list it along with other contributions or services to that organization so that the whole "package" can be reviewed.

Thanks so much to both of you for your thoughts - this is very helpful information to have -