Underwriting, Sponsorship & In-Kind Donations
To help offset and/or minimize the expense of conducting a special event, staff and volunteers are
encouraged to seek Underwriting, Sponsorship and In-Kind gifts for the event.
Sponsorship – a comparatively large cash contribution to an event that is not targeted for a specific
expense (but rather to increase event revenue) and for which benefits are promised to the donor (i.e.
recognition, table, etc.).
For example, XYZ Corporation donates $5,000 to Anytown RFL; in doing so, the company’s logo may
be included on the event t-shirts.
Underwriting - includes gifts solicited and secured to pay for a specific expense of an event. When
pursuing underwriting, it is advantageous to first underwrite an event’s direct expenses (versus
indirect expenses).
Option A -- For example, XYZ Corporation is solicited and makes a donation to Anytown RFL
(payable to ACS) to pay for the event t-shirts. In doing so, the event does not incur an expense for
the shirts. Staff should secure and retain documentation to confirm the donor’s intent in underwriting
the event expense (documentation can consist of a donation cover letter from the underwriter, a
standardized event donation form completed by the donor, or a simple notation on the underwriting
check). The ACS issues a cash receipt to the donor.
Option B – XYZ Corporation agrees to purchase the event t-shirts on behalf of the ACS via writing a
check directly to the vendor. In doing so, the event does not incur an expense for the shirts.
Subsequently, the ACS issues a in-kind donation receipt to the company.
As an underwriter, the company’s logo may be included on the event t-shirts and promotional
materials.
In-Kind Donations – a donation to an event of product or services. For example, ABC Printing
Company donates 100,000 sheets of paper and printing services to produce the event promotional
flyer. In doing so, the event does not incur an expense for paper or printing services. In turn, the
company’s logo may be included in event recognition materials.
All three options greatly help the ACS by minimizing and/or eliminating our costs of implementing a
special event – and all options are equally tax-deductible to the donor.
Underwriting, Sponsorship & In-Kind Donations
Guidelines for Sponsorship & Underwriting
The following guidelines are recommendations for a Relay For Life event. You can adjust based on
your community & your event’s needs.
County with a population under 25,000
County with population between 25,000 and 50,000
County with population between 50,000 and 100,000
County with population over 100,000
Minimum for top level
$1,500
$2,500
$5,000
$10,000
Rationale
The top Relay For Life events in the Pennsylvania Division are achieving or surpassing these
guidelines.
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The cost of delivering benefits requires these minimum levels to meet expense standards.
The printing of logos on the back of all t-shirts is a benefit offered only to top level sponsors by including the cost of printing the logos and the time required for volunteers and staff to get
the T-shirts printed, out weigh the donation.
By selling the underwriting/sponsorship for a lesser amount, it will be nearly impossible to
move the underwriters/sponsors to a higher level for future events.
Double check your underwriting & sponsorship packets. Make sure the amenities that you give
a $1,500 donor are less than what you give a $5,000 donor, no matter whether it is
underwriting or sponsorship.
SPONSORSHIP
Description
Represents a (oftentimes sizable) cash
contribution to the
event for which
benefits are provided
to the donor (i.e.
recognition, table,
etc.).
Check is made
payable to ACS.
UNDERWRITING
Gifts solicited to pay
for a specific event
expense.
IN-KIND
Donor contributes
product or services to
the event.
Option A – donation is
paid to ACS and
targeted to underwrite
a specific expense of
the event.
Option B – donor
pays vendor directly
on behalf of the ACS.
Acknowledgement
Format
Letter to donor stating Option A – cash
amount of donation donation receipt.
and value received, if
any, for the donation. Option B – in-kind
donation receipt
describing donation
but less value.
In-kind receipt
detailing donation,
less valuation.
Tax Deductibility
to the Donor?
Yes, As a monetary
Yes on both options.
Gift to the ACS, donor
may claim gift less
FMV received.
Yes.
Impact on
Event Income
Donation recorded as
event revenue. Adds
to gross/net income.
No impact on total
expenses.
Lessens event
expenses as ACS
does not incur cost of
product or services
donated.
Additional benefit
To the American
Cancer Society
Lessens event
expenses as ACS
does not incur cost of
product or services
underwritten.
Option A – with donor
documentation, does
not appear on audit
as a fund raising
expense. Rather,
appears as
an Exchange
Transaction.