I'm having trouble finding a good answer to the question about whether individual shooters can solicit funds from businesses and private donors for training costs.
Specifically, can an otherwise non-supported shooter (non USST, non-USAMU, etc. - i.e. plain 'ol civilian) solicit sponsors who make cash donations that are then used for training costs, travel to matches, etc.?
The sponsors are made aware that donations are not tax-deductable and that the no accounting of the use of the funds will be made to them or any other entity.
I read the ISSF Rules and they seem to accomodate such sponsorships, within certain guidelines (most of which relate to advertising for your sponsors at international events).
I didn't read the USAS rules (as they're not online, they're not easily searchable). I did skim through them and couldn't find anything that addressed this question.
Any advice is appreciated.
I've had a few individuals inquire about making donations and I don't want to get any trouble down the road with amatuer status, etc. (Is amatuer status even necessary anymore?).
Thanks,
--Matt
mc-at-harrisfish.com.43281.0
What are the rules about soliciting sponsors?
Moderators: rexifelis, pilkguns
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Matt Cole
P.S. I'm an adult shooter, not a junior/collegiate (nt)
mc-at-harrisfish.com.43282.43281
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Ken J
Re: What are the rules about soliciting sponsors?
Matt,
The rules of sponsorship are a bit uncharted. However, I'll make a few points. First, there's nothing wrong with getting sponsored. In fact, companies like to be affiliated with athletes. It gives them a testing platform, PR for the firm, community involvement, etc.
You, if sponsored, also become a figurehead for the sponsor. It's a win-win situation.
Now, there is a point where you need some guidance. If you're on the national team, you can take advantage of the US Team sponsorship program. Basically, if the company gives you money, they can do so through the National Team. They give USA Shooting money, ear tagged for you. You can use the money for shooting related expenses. If the money is donated to USA Shooting, it is then considered tax deductable (501-C3). The caveat here is that the money must be used for shooting expenses and if you have money remaining in your "account" and fail to make the team, you have 3 years to make the team again, and re-access your money.
As for soliciting sponsors, the only time USA Shooting will get bent out of shape is if you fraudulently use terms, such as "Olympic shooter", "World Champion", etc., when indeed you are not on the Olympic Team, etc. Be careful. They have the right to protect those terms and will pursue legal action if you deceive a sponsor.
Ken J
.43307.43281
The rules of sponsorship are a bit uncharted. However, I'll make a few points. First, there's nothing wrong with getting sponsored. In fact, companies like to be affiliated with athletes. It gives them a testing platform, PR for the firm, community involvement, etc.
You, if sponsored, also become a figurehead for the sponsor. It's a win-win situation.
Now, there is a point where you need some guidance. If you're on the national team, you can take advantage of the US Team sponsorship program. Basically, if the company gives you money, they can do so through the National Team. They give USA Shooting money, ear tagged for you. You can use the money for shooting related expenses. If the money is donated to USA Shooting, it is then considered tax deductable (501-C3). The caveat here is that the money must be used for shooting expenses and if you have money remaining in your "account" and fail to make the team, you have 3 years to make the team again, and re-access your money.
As for soliciting sponsors, the only time USA Shooting will get bent out of shape is if you fraudulently use terms, such as "Olympic shooter", "World Champion", etc., when indeed you are not on the Olympic Team, etc. Be careful. They have the right to protect those terms and will pursue legal action if you deceive a sponsor.
Ken J
.43307.43281
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Richard Ashmore
Re: What are the rules about soliciting sponsors?
You probably would be wise to have the funds comr to you via a tax exempt entity or a corporation, lest it be properly accounted for as income taxable to you.
Consult a tax attorney/accountant for details.
govtmodel-at-budweiser.com.43387.43281
Consult a tax attorney/accountant for details.
govtmodel-at-budweiser.com.43387.43281
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Chris L in NC
Tax attorney in da HOUUUUSE
: You probably would be wise to have the funds comr to you via a tax exempt entity or a corporation, lest it be properly accounted for as income taxable to you.
: Consult a tax attorney/accountant for details.
Yep, that is the thing to do with your massive amounts of sponsorship funds. If your sponsors directly give you money and equipment in return for helping publicize them, that would probably be taxable to you as ordinary income, and your sponsors would deduct it as a business expense. Instead, have them cycle everything through your friendly local USA Shooting affiliate club. If your local club is properly set up, it should qualify as an amateur sports organization and your sponsors can still deduct what they give you, though now it's a charitable contribution rather than a direct business expense, and your club can pay your way to matches and let you use the equipment without your reporting anything as taxable income.
If that's too much hassle, you might could get your sponsors to buy equipment for themselves and lend it to you under a written agreement that says they own it and are letting you use it temporarily. I suppose technically you could get dinged for the fair rental value, but even IRS is (probably) too busy to bother with such stuff.
Consult your actual tax person for details, as always, but if you happen to be anywhere near Raleigh NC you can drop in and I can help you. Unless I'm shooting, of course.
chrisatty-at-hotmail.com.43470.43387
: Consult a tax attorney/accountant for details.
Yep, that is the thing to do with your massive amounts of sponsorship funds. If your sponsors directly give you money and equipment in return for helping publicize them, that would probably be taxable to you as ordinary income, and your sponsors would deduct it as a business expense. Instead, have them cycle everything through your friendly local USA Shooting affiliate club. If your local club is properly set up, it should qualify as an amateur sports organization and your sponsors can still deduct what they give you, though now it's a charitable contribution rather than a direct business expense, and your club can pay your way to matches and let you use the equipment without your reporting anything as taxable income.
If that's too much hassle, you might could get your sponsors to buy equipment for themselves and lend it to you under a written agreement that says they own it and are letting you use it temporarily. I suppose technically you could get dinged for the fair rental value, but even IRS is (probably) too busy to bother with such stuff.
Consult your actual tax person for details, as always, but if you happen to be anywhere near Raleigh NC you can drop in and I can help you. Unless I'm shooting, of course.
chrisatty-at-hotmail.com.43470.43387