A corporate sponsorship payment that is contingent on attendance at a sporting event increases the recipient's unrelated business income.

Question

Quizplus · Accepted Answer

Corporate sponsorship payments that are contingent on the level of attendance, broadcast ratings, or other factors indicating the level of public exposure to the sponsored event can be considered advertising or a form of unrelated business income, rather than a donation, which can increase the recipient's unrelated business taxable income.

A Corporate Sponsorship Payment That Is Contingent on Attendance at a Sporting