Board of Directors Approved Policy on Corporate Relationships
American College of Prosthodontists
Board of Directors Policy on Corporate Relationships*
Approved ACP Executive Committee: May 23 2016
As a federally designated 501(c)6 nonprofit organization, the American College of Prosthodontists (ACP) cannot endorse or appear to endorse any company or its products or services because an endorsement would be considered as a request for ACP members and the public to buy the product or service of the company. Endorsements also carry product liability, public relations, and other risks. Further, any corporate sponsorship income received through such an arrangement is taxable when exchanged for an endorsement.
The ACP can receive corporate sponsorship income tax-free if what is given the corporate sponsor in return for its payment is an acknowledgment of thanks. Such acknowledgement might be a thank you for support printed in the Annual Session program or wording like “this project is funded in part through an unrestricted educational grant from X Company.”
The ACP also cannot make a qualitative judgment on a company’s products or services. This means that acknowledgments of thanks may not contain comparative language or language that implies good quality. The ACP cannot ask its members or the public to buy the products or services of a company or corporate sponsor. Even an innocent phrase like “please patronize our sponsors” would jeopardize the tax-free nature of a corporate sponsorship. ACP Board of Directors, Committees, and Task Force members and leaders should not mention or reference the ACP or ACP membership in communications that have any company’s logo, name, products, and services.
*Adapted from a 2008 paper entitled, “Understanding Corporate Sponsorships” by ACP legal counsel, Paula Cozzi Goedert, Barnes & Thornburg LLP
Dated June 13, 2016
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