Tax Issues | Alumni Association of the University of Michigan                            

The Association does not not consider event sponsorship a tax-deductible gift because it is impossible to calculate the FMV of the benefits, including exposure, that a sponsor receives in exchange for such sponsorship (e.g., the club's promotion of the sponsor via its communication channels and in the event program booklet; signage at the event; the opportunity to distribute company information at the event). Furthermore, event sponsors will often receive tangible benefits for their sponsorships (e.g., premium tickets, gift backs).