Should organizations that receive money for sponsorships receive 1099s?


Here are a few key guidelines:

First, 1099 reporting is required for trade or business transactions. Donations where no services were received in return are not reportable. However, a 1099 may be required if your company received services from the university in return—such as providing and supporting exhibit space to you at an event. Then again, public universities are exempt from reporting because of their status as a state governmental entity.

However, if the payment was to a private university, that part of the payment that was for services (say, for exhibit space) would be reportable, whereas the donation would not be reportable. We confirmed this with IRS information reporting agents Ms. Taylor, ID#1006489, and Ms. Smith, ID#1006623. See IRS 1099-MISC Instructions for more information.

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