Regarding Give-Aways

Question:When reporting a community benefit activity that has marketing aspects, such as promotional give-aways, what costs should be included as the community benefit expense?

Recommendation: At a community benefit event, only count the cost of health related give aways. Do not count the cost of any items that are solely for the purpose of marketing.

For example: A hospital has a health screening event for a pre-school that is located in a vulnerable population neighborhood. Need has been identified and this is part of the strategic plan to get better health outcomes for children. Children receive books about proper nutrition, dental kits, jump ropes, and a smiley face magnet with the name of the hospital. The cost of all supplies and give aways would be counted, except for the magnets.  

(July 2022)

Please Take Note: The information provided does not constitute legal or tax advice. The material is provided for informational/educational purposes only. Please consult with counsel regarding your organization's particular circumstances.