"."[at]giganews.com wrote:

- quote -

This sounds like a problem I was investigating for my
engineering society a while back. We were looking into how
much money could be spend on "lobbying" for the benefit of
our members without endangering our non-profit status.

I found that a publication such as yours could allocate up
to 25% of its print area to paid advertising without having
a problem with its non-profit status. The advertising
revenue would help offset the expense of the printing. In
your case I see no problem with the Florist's generous
contribution being acknowledged in your bulletin. It's
common practice in other bulletins to acknowledge donations
of food for receptions, service books, etc. and to publicly
thank the donor at the service. "I want to thank XYZ
Florists for their kind donation of the floral arrangements
that decorate the altar..."

Linda Dorfmont E.A., CFP, CSA

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..[at]giganews.com wrote:

- quote -

Why would it be UBI? It certainly seems related to their
business to me. Perhaps it would technically be income, but
it would be offset by the "cost" of the advertising.

Stu

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<"."[at]giganews.com> wrote:

- quote -

That type of recognition advertising in that type of
publication, in exchange for incidental property, I believe
meets several exceptions to the UBIT rules. It's also so
common it's hard to imagine any violation of even any code
of ethics for charitable nonprofits, much less any statute.

Fred F.

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List members --

New owner of local florist is offering free flowers to
churches, temples, etc, for Services in exchange for little
notice in the weekly bulletin, to wit:

"Flowers were donated by XYZ Florists, who do flowers for
weddings, funerals, etc."

Might this little notice be considered paid advertising and,
thus UBI?? What other tax and or legal issues could arise
from this "advertising" arrangement.

Thanks for replies.

FWK, Finance Chairman, ESUMC, Calif.

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