See Policy FIN-001: Determining if an Award is a Gift or Sponsored Project
A Gift is defined as: an irrevocable transfer of assets (cash, stock, gifts, etc.) to the done such that the donor can exercise no further control over it and does not have expectation of any contractual requirements or potential benefits. To be tax deductible it must be donated to an organization recognized as charitable by the IRS (a 501(c) (3) corp).
A Sponsorship is a payment by a business, to a nonprofit’s mission. It is generally recognized by the nonprofit with an acknowledgement that the business has supported the nonprofit’s activities, programs, or events. Sponsorships can be a mix of charitable contributions and payment for services (which is income to the nonprofit), depending on the facts and circumstances.
If you have any questions about these guidelines, contact Sponsored Programs.