RE: AM: Should non-profits solicit donations through banner ads?
On Sunday, January 18, 1998 1:02 PM, Andrew Forbes
> What I know about marketing is more direct mail
> oriented than broadcast, so I have a fairly basic
> When a radio/tv station runs a PSA for a non-profit,
> does it count as donation for tax purposes? If so,
> how is a value placed on the ad presentation? How
> would this work on the 'net?
> Andrew Forbes
My understanding is that every non-cable based TV/Radio station must devote a
specific percentage of their advertising time to PSA'a as a condition of their
Because of this mandate, that time couldn't otherwise be used for commercial
purposes. Thus my belief is that it's value (which would be the specific CPM a
commercial concern would be charged for the airtime based on audience for that
time slot) is not deductible because the time could not be sold to say, Procter
and Gamble, for x dollar amount.
Of course, I'm not a CPA and as I don't want the Professional Regulation people
fining me or imposing some like torture upon me, I must qualify the above to be
"my understanding" and not fact. :) Happy MLK Day.
David J. Simonetti
1601 Connecticut Avenue NW, Suite 803
Washington, DC 20009-1035