Utah Valley University
Policies and Procedures
|Title||Coordination of Sponsorship and Advertising||Number||234|
|Section||Financial Affairs and Development||Approval Date||Jun 15,2006|
|Subsection||Development||Effective Date||Jun 15,2006|
UVU needs a policy for departments and programs soliciting revenue in the form of sponsorships and advertising to support institution activities. The policy will serve as a guide in decision making for institutional personnel who are approached by, or approach, external advertisers or corporate sponsors that want to access the campus community.
- Institution Personnel: Employees of Utah Valley University.
- External Advertisers: Non-campus businesses or commercial enterprises that want to promote items across campus.
- Campus Community: All faculty, staff, and students of UVU.
- Supplemental revenue: Additional revenue received from donors and business to assist programs at UVU.
- Insitution Activities: Any activity held at UVU by UVU or held by UVU off campus.
- Corporate Sponsorship: A contribution from an external business or commercial enterprise in exchange for acknowledgement that is limited by the IRS to the business name, logo, address, telephone, and internet address.
- Advertising: The opportunity provided to another party for the purpose of promoting or marketing any trade, business, service, facility or product (funds are not recognized as a donation). Advertising revenue may be subject to federal unrelated business income tax (UBIT).
- Marketing Agreements: Agreements that allow a product to be marketed and sold on campus (eg: Pepsi, Cellular).
- Office: The Office of Institutional Advancement.
- Before revenue is accepted, the department shall determine whether the funds are for advertising or for sponsorships. Sponsorships require approval from the office of Institutional Advancement before they are accepted.
- Since corporate sponsorships are charitable contributions by IRS definition and must be appropriately receipted by Institutional Advancement, departments and organizations must report all sponsorships to Institutional Advancement in order to ensure accurate accounting and acknowledgement from the Foundation.
- Advertising is not considered a charitable contribution and is not subject to IRS regulations. Advertising is not processed through the office.
- When an institution employee is approached or approaches a business or commercial enterprise to advertise or be a sponsor, the individual needs to determine whether the entity wants to be an advertiser or sponsor. If the business wants to be a sponsor, the institution employee needs to contact Institutional Advancement for approval.
- Proposal summary: Provide a description of an unmet need of the institution or community that will be met by the Special Unit. Describe how the Special Unit is qualified to meet the need. Identify any faculty or staff involved and their units.
- To be considered a sponsorship the following must take place:
- Monies or equivalent are received by UVU from an individual, business, or commercial enterprise.
- Acknowledgement from the institution. (The acknowledgement may not contain the institution's endorsement of the business entities products, or services. Any qualitative or quantitative language about the business entities products or services, or any information other than business name, logo, address, telephone, and/or internet address, would classify the contribution as Advertising.)
- Funds may not be from a vendor as part of an exclusive provider arrangement.
- If all of the above criteria are not met, the payment is considered advertising revenue according to IRS regulations, and not a contribution eligible as a tax deduction.