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The Difference Between Advertisers and Sponsors — and Why You Should Care

The distinction between advertising and sponsorship income is extremely important, since net advertisement revenue is generally subject to the unrelated business income tax (UBIT), while sponsorship revenue is tax-free. Here’s how to make the distinction less confusing. The revenue received by nonprofit organizations, including associations, must be classified as either income related to the organization’s exempt purposes and exempt from tax, […]

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