How do I count sponsoring an event if I was partially paid for it? I only charged part of my fee and was listed as a sponsor for the event for the rest of the fee?

[dan143]

If my live streaming cost was $3750 and I sponsored the event at the $1000 level and only invoiced them $2750, how or do I account for the difference?

[MaryK4]

Can you clarify if this was a charitable sponsorship or other type? @dan143

[dan143]

Yes, I believe. It was for a non-profit organization and my logo was added as one of the sponsors for the event. 

[SSM0003]

The $1k is an inkind donation.  If you want to be on the up and up, you should bill them the entire amount and note a credit on your invoice of $1k for the sponsorship, thereby reducing the amount they owe you.  They should in turn issue you a letter for the donation like they do for other donors and they should note it on their books. Otherwise, you can just invoice them for the net they owe you since that is, in the end, the taxable transaction.

[DianeW777]

It depends. This would be considered a cash donation for any amount of money you spend for the event of the nonprofit organization. 

• Enter the amount you spend on items provided to the organization under cash donations

Contributions of $250 or More

• You can claim a deduction for a contribution of $250 or more only if you have a contemporaneous written acknowledgment of your contribution from the qualified organization or certain payroll deduction records. 
• If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that lists each contribution and the date of each contribution and shows your total contributions.

There is no deduction for a discounted fee for an event even if they are nonprofit organization. In other words if there was no money expended by you for the event and you only discounted your fee for services, then there is no deduction.

• Organizations that qualify to receive deductible contributions