Corporate sponsorship support is a payment by a business to a nonprofit to further the nonprofit’s mission that is recognized by the nonprofit with an acknowledgment that the business(es) has supported the nonprofit’s activities, programs, or special events.

A successful corporate sponsorship benefits the charitable nonprofit and the sponsor. However, there are tax issues to be aware of for sponsorship to be appropriate, and the legal benefit to the for-profit entity should not outweigh the benefit to the tax-exempt charitable nonprofit.