Although I am not a tax lawyer or accountant (nor do I play one on TV), my
belief is that if "sell" (as opposed to solicit "donations" or
"underwriting") space on your website you will be subject to UBIT (unrelated
business income tax -- the term refers to money that is brought in for
activities (or goods sold in your shop) unrelated to your central mission).
The wording of the "acknowledgement" for the "donation" must not include any
assessment of the company's activities (e.g., "number one source for Nike
equipment in the Ipswich area") or a call to action (including "contact us
today"). Including an address, phone number and website address is fine on
print ads; I'm not sure if there is a difference if you include a hotlink on
your website. Certainly by doing so you ARE providing "goods and services"
to the "donor"...
Some of Professional Committees of AAM have struggled with this problem in
using "ads" or "acknowlegements" in their newsletters and membership
directories (which is where I had to deal with it). You might try
contacting the Development office at AAM for more information.
Janice Klein
Director, Mitchell Museum of the American Indian, Kendall College
[log in to unmask]
www.mitchellmuseum.org
-----Original Message-----
From: Museum discussion list [mailto:[log in to unmask]]On
Behalf Of George W. Garner
Sent: Monday, June 30, 2003 2:15 PM
To: [log in to unmask]
Subject: Selling links to for-profit sites on museum webpage
We are in the process of developing a new, interactive, educational website
for our new institution. In absence of a facility, the website will be a
major focus of our public educational programming for the next few years. It
will contain an interactive collection database, online exhibits, children's
section, and other programming.
I intended to create a 'Links' section where visitors could find more
off-site information. It's logical to offer links to (for-profit) stores and
manufacturers who sell products and services related to our mission. We're a
sports museum, so equipment dealers and manufacturers are a good fit and
make sense to link.
I wonder if it would be wise to sell, instead of give these links. Let me be
sure I'm clear. I have no intention to offer banner ads, or huge
advertisements. Rather, simply list the name of the company, a website
(maybe phone number), and a brief description (one sentence) about what they
offer. No flowery, sales terms (e.g. "The lowest prices in the northeast!");
instead, simple, clear terms (e.g. "Skate manufacturer based in Hometown,
New York"). Visitors would know these were paid links, and we do not endorse
any product or service.
So far, I've seen nothing in the IRS website and 501c3 codes to imply this
is a bad thing; however, I know of no other museum website that does this.
This could be UBIT, but again, the legalese is a bit difficult for me to
parse. I'm interested in opinions, particularly from those who have thought
about something similar. Why did you (not) do it?
Thanks in advance,
George Garner
The National Speedskating Museum & Hall of Fame
P.O. Box 3120, Saratoga Springs, NY 12866
George Garner, Director
[log in to unmask]
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