Are sponsorships/donations to an organization reportable?

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If the donation or sponsorship is simply a payment given to support that organization, then it is not reportable, according to Miss Tennett (#10013007512) at the IRS help line. It is reportable only if there is some type of incentive or service being given in exchange for the donation.

For example, if you donated $10,000 to an organization and received an advertising banner at the group's location or event in exchange for the payment, then it would be reportable as a service under 1099-MISC box 7. If you donated $1,000 to a person in need and asked that person to perform some type of service such as cleaning your building in exchange, then that would be considered income rather than a donation and would be reportable under 1099-MISC box 7.

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