Just as the dust settles with health care reform and pharma regs, the IRS comes in with a heads up to associations: your sponsorship dollars may be taxable as unrelated business income. OK, the tax people didn’t say that directly but look at what they are doing at colleges and universities: looking into corporate sponsorship relationships. The IRS is also expanding the use of questionnaires to check out income sources of all non-profits. Industry insiders are alarmed enough about these developments to warn associations now that they could be next.
Folks, this could be a big deal. More associations are using sponsors to pay their speakers. What happens to that money if it comes with a huge hassle factor?
Prediction: associations will adjust how much they promote sponsors’ products and services. We’re fine for now, but be ready to change your speech to allay their fears.
Tags: associations, budgets, experts, Marketing, positioning, speakers, Speaking, Sponsorship, strategy, Vickie Sullivan