DONATIONS & SPONSORSHIPS PRACTICES

Mutual Benefit Partnership

We want this partnership to work well for both of us. Clear records of what you contribute and what we provide in return help prevent misunderstandings. This helps both of us keep clear records and meet the IRS requirements that apply to our arrangement. Sounds of the Zoo provides written acknowledgments documenting contributions and any goods or services provided in return.

Charitable Contributions

For payments that qualify as charitable contributions, the acknowledgment states whether benefits were provided and, where applicable, describes those benefits and includes a good-faith estimate of their fair market value. The acknowledgment documents the transaction; it does not guarantee a particular tax deduction.

The two examples below illustrate these situations. Example 1 applies when no goods or services were provided in exchange for the contribution. Example 2 applies when goods or services were provided and their value must be disclosed.

Examples Only - Legal Documents May Vary By Situation

An acknowledgment tailored to the actual contribution and agreed benefits will be issued; these examples are not completed receipts or sponsorship agreements. They explain the approach and should not be copied and used unchanged.

These samples are illustrative only and are not legal or tax advice. Tax treatment depends on the transaction, applicable law, and the contributor’s circumstances. Consult your CPA or attorney about eligibility, valuation, or reporting requirements.

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EXAMPLE 1 — NO GOODS OR SERVICES PROVIDED IN EXCHANGE ======================================================================

SOUNDS OF THE ZOO (SOTZ)
Official Charitable Contribution Acknowledgment

Date of Issue: [Insert Date]

Date Contribution Received: [Insert Date]
Sponsor Partner: [Insert Sponsor Corporate Name]
Contribution Year: 2026

Dear [Insert Sponsor Contact Name],

On behalf of Sounds of the Zoo (SOTZ), I want to extend our deepest gratitude for your generous financial contribution of $[Insert Total Cash Received] in support of our [Insert Year] music festival. Your belief in our mission is what allows us to keep local music alive and ensure our community events remain free and accessible to everyone throughout the Kalamazoo region.

Pursuant to Internal Revenue Service (IRS) regulations regarding corporate sponsorship substantiation, this letter serves as your official written acknowledgment of your contribution.

Tax Compliance Disclosures:

Recognition of Support: SOTZ recognized your support through your company name, logo placements, and directory listings. This recognition identified your company as a supporter and did not include advertising, endorsements, or invitations to purchase your products or services. See IRS Section 513(i).
Goods and Services Statement: No goods or services were provided in exchange for this contribution other than the recognition described above.
Tax Treatment: This acknowledgment documents your contribution and the support recognized above. Please consult your tax adviser to determine whether and how the payment may be deducted.

Thank you again for being a vital pillar of Sounds of the Zoo. We look forward to celebrating a spectacular and successful launch alongside you next week!

Warmest regards,

Jenn Hudson-Prenkert
Founder & Executive Director
Sounds of the Zoo (SOTZ)

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EXAMPLE 2 — GOODS OR SERVICES PROVIDED IN EXCHANGE ======================================================================

SOUNDS OF THE ZOO (SOTZ)
Official Charitable Contribution Acknowledgment

Date of Issue: [Insert Date]
Sponsor Partner: [Insert Sponsor Corporate Name]
Contribution Year: 2026

Total Payment Received by [Insert Recipient’s Full Legal Name]: $Insert Cash Amount

Dear [Insert Sponsor Contact Name],

On behalf of Sounds of the Zoo, I would like to extend our deepest gratitude for your generous corporate contribution of $10,000.00, received on [Insert Date Check Received], in support of our 2026 free community music festival in Kalamazoo, Michigan.

Partnerships like yours are what allow us to keep our multi-day musical and cultural programming entirely free, accessible, and vibrant for the greater Kalamazoo community.

In accordance with Internal Revenue Service (IRS) regulations regarding quid pro quo contributions and substantial return benefits, this letter serves as your official receipt and formal disclosure of the exchange value provided for this activation.

1. Contribution Summary:

Total Corporate Funds Received: $10,000.00
Value of Goods/Services Provided in Return: $900.00 (Details below)
Payment exceeding the estimated fair market value of benefits: $9,100

2. Fair Market Value (FMV) of Benefits Provided: For this illustrative example, assume the sponsor received a 400-square-foot booth space for marketing and sales during the three-day festival, with a good-faith estimated fair market value of $900. An actual acknowledgment would reflect the benefits provided and their supported estimated value.

3. Tax Treatment: This acknowledgment documents the payment received and the estimated fair market value of benefits provided. Please consult your tax adviser to determine whether and how any portion of the payment may be deducted. For federal income tax purposes, any charitable contribution deduction is limited to the amount by which the payment exceeds the fair market value of goods or services provided in return.

We are deeply grateful for your support of the arts and culture of Kalamazoo. We look forward to partnering with your team again.

Warm regards,

Jennifer Hudson-Prenkert

Executive Director, Sounds of the Zoo

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IRS REFERENCES

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Internal Revenue Code §6115 — Disclosure Requirements: The actual statute requiring disclosure when a donor pays more than $75 and receives goods or services in return. The threshold concerns the total payment.
IRS: Substantiating Charitable Contributions: A readable explanation of §6115, estimating the value of benefits, and the exceptions.
IRS Revenue Procedure 90-12 — Safe Harbor Guidelines: The donation safe harbor for benefits of insubstantial value.
IRS Revenue Procedure 92-49: Supplements those guidelines for free, unordered, low-cost items accompanying solicitations.
IRS Publication 1771: The most useful overall reference for receipts, acknowledgments, and disclosures—including the acknowledgment donors need for single contributions of $250 or more.
IRS: Advertising or Qualified Sponsorship Payments: Particularly relevant to Sounds of the Zoo: explains sponsor recognition, logos, advertising, and other sponsor benefits.

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