Accounting Handbook: Sponsorships

November 13, 2019 0 By Kody Olson


Do you handle sponsorships for your department? If you conduct functions that receive monetary
or other support from companies or individuals, the Sponsorships procedures apply to you. Sponsorships occur when companies or individuals
provide money, services, or other support to a University
event or activity. Organizational units need to understand the
differences between sponsorships and advertising income. Let’s take a quick look at what that means Sponsoring companies and individuals do not
receive substantial benefit in return for the sponsorships
they provide. Their name or logo may appear on event brochures,
banners, or other promotional material. When sponsors receive more than just an acknowledgment of support, the sponsorship becomes advertising income
to CU. And this can result in UBIT –
unrelated business income tax. CU’s Sponsorships procedures cover Definitions, Sponsorships and UBIT, Acceptance and Deposit Procedures,
and special Considerations To find out more, see the Accounting Handbook
chapter on Sponsorships. If you have any questions,
Contact the Fundraising Events and Gift Compliance Specialist in the Office of University Controller.