Financial Donations to Figure Skaters
Monday July 14, 2008
Recently, a request for leads on funds for an aspiring senior level skater, was made on About.com's Figure Skating Forum. This got me thinking how so very expensive figure skating is. Figure skaters of all ages and levels need financial help with their ice skating expenses. How can financial donations be given to competitive figure skaters? Does anyone have any leads on where financial assistance for ice skating can be obtained?
Comments
COMMENTS ABOUT SKATING SPONSORSHIPS
It is not uncommon for skaters’ parents to seek sponsors. Sponsorships are, and have been for many years, a common subject among skating families. It seems that when anyone hears or believes that a skater is being sponsored, other parents believe they would like to have their child sponsored also.
Sponsors are hard to come by. Few people will sponsor someone to become a recreational skater. Some potential sponsors may be willing to sponsor an athlete who is starting to “climb” the competitive ladder -especially as the skater reaches national prominence. Usually potential sponsors look at a number of reasons when determining if they will offer or respond to a request for sponsorship. The three primary reasons are:
1. The potential sponsor believes that, or is led to believe, the athlete has the potential to be a quality representative of their (the sponsor’s) community in a wider arena than just that the community the athlete and/or sponsor resides in.
2. The potential sponsor believes, or is led to believe, that as a member of a community their help in furthering an athlete’s athletic career will benefit both the sponsored athlete AND their community.
3. The potential sponsor enjoys knowing that through their help an athlete can continue and/or advance in the athlete’s chosen sport.
Individual sponsors, once any or all these reasons have been met to their satisfaction, will have additional criteria which vary by the individual or sponsoring group. Often those that sponsor one athlete also sponsor, or are open to sponsoring, other athletes.
Usually, sponsors do not invest in “seeing if.” There may be some, but we don’t know who they are. Actually, parents are investing in “seeing if” when they start their child in lessons. Many potential sponsors may want to know if the athlete will eventually be “nationally ranked” or will reach some other stated goal. We, the administrators of the Fund, cannot promise a potential sponsor something we are not in control of or have a great amount of influence on. However, we will tell them that their money may help the athlete reach that goal.
The Administrators of the XSA Skating Fund do not solicit sponsorships! We believe it is a good idea that we talk to the potential sponsor(s) if they desire. There are many factors involved in this program that they should be aware of. Since we will be spending their money, they should meet us. We will answer their questions and give them details of the program. This conversation will be private between the donor(s) and the administrators.
It is the parent’s responsibility to keep the sponsors advised of any exhibitions and shows the skater will be in, competitions the skater is entering, where the skater placed, and what test the skater is about to take and if the skater passed the test or not.
We will be happy to discuss this program with current and potential sponsors. Our involvement in this program does not say that we believe a skater has the potential that will ensure winning, passing tests, or advancing to national or international skating status. Our involvement stems from our personal beliefs that skating is a healthy, life long activity and that it is a responsibility that adult skaters should take on . . . especially if the sport is to grow.
One final note. We suggest that a sponsorship should not be considered a one time thing. It is unfair to a skater, especially a young child, to have their progress stopped after one year because of lack of money in the fund.
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ABOUT THE XSA SKATING FUND
To encourage those who wish to support skaters, in cooperation with the X____ S____ A_____ the administrators of the OSA Skating Fund have set up a program to make this possible. X______ S_______ A_______ is tax exempt under the IRC 501 (c)(3). Therefore any donation made to the OSA Skating Fund is 100% tax deductible to the donor to the extent allowed by law. Donations to the Skating Fund can be used for:
1) Skaters living in ________ who train in ________or ________
2) Skaters living in SW _________ who train in _______
3) Skaters who formerly lived and trained as in #1 and #2 but who now train in other areas
4) Skaters new to ______ or _________ who now train in _______
So that donations will not be considered as income to parents, sponsorship money should not come from skaters’ and/or their parents’ employers, customers or suppliers of the employer. In addition, contributions will not be allowed from close family, i.e., brothers, sisters, aunts, uncles, cousins, grandparents, 2nd cousins, great aunts and uncle, etc. How family members help each other comes under familial relationship. We suggest skaters’ parents check with their tax advisors.
Any donations made to the XSA Skating Fund will be private. The Administrators of the Fund will not divulge who is being sponsored or who is doing the sponsoring. Under this program, any donor can be assured that only the donor, the skater’s parent, and the administrators will know who the skater is and who the donors are. Donors should not expect anything more from a skater other than that the skater does his or her best. We strongly suggest that skaters’ parents not divulge that their child is sponsored or, if they know the donors’ names, who donated money to the fund. Privacy in these matters is very important!
The XSA Skating Fund is NOT to be used by a skater’s family as a way of making their skating expenses tax deductible. We will not accept any money from a skater’s family for their own or another family’s skater. We will accept money from a skater (preferably an adult skater) for sponsorship of a skater not associated with the donor. If we find that two families are exchanging donations to the Fund for the other’s child(ren) they will be immediately dropped from the program. The OSA Skating Fund reserves the right, at its discretion, not to accept some contributions or participants in this program.
Donations given to the XSA Skating Fund will be limited to funding lessons, expenses to and from USFSA sanctioned competitions and some other skating related expenses. Expenses such as Club and USFSA dues, test and entry fees, parents’ and coach’s travel expenses, local travel to and from skating, shelter, sustenance, and non-skating related activities such as the purchase of general clothing, medical insurance, and vehicles for local transportation are the responsibility of the skater and/or their parent. We require that the parent and/or coach of each skater participating in the program provide the Administrators with a lesson plan and a list of other proposed expenses. Any bills submitted for a skater for monies in their name in the Fund will only be paid if such expenses are on the list. We ask coaches and the arenas to assist us in making any donated funds go as far as possible when a skater has been selected to receive money from the Fund.
Where does one find a sponsor? That is the toughest question of all. One problem that most people are not aware of is whether or not the IRS will consider sponsorship monies as additional income to the skater’s family. Another problem is whether the donations are deductible by the sponsor because of close family relationships. We suggest the skater’s family discuss this with their accountant, tax lawyer or advisor. Accordingly, the following is a list of categories of donors from whom the OSA Skating Fund will not accept donations because to do so may cause the skater’s family to have an additional tax burden:
A. Family: The rule-of-thumb has been that the donator must be at least “three times removed” (people other than siblings, grandparents, great grandparents, uncles/aunts, great uncles or aunts, cousins, 2nd and 3rd cousins} from the skater and/or their parents. The donor and the skater and the skater’s family may find it better to have a personal arrangement between the parties involved.
B. Employers of the skater’s immediate family: A donation of this type may be seen by the IRS as additional income to the employee.
C. Employees of the skater’s family: This may be seen as coercion, a way for an employee to believe that they are insuring their job security, or the IRS may look to see if the money came from the employer as a method of assigning skating costs to the business.
D. Any person or firm doing business as a supplier of products or services or a client of the skater’s family or business activity. This may be looked upon as an unauthorized discount or way of hiding income.
E. Other skaters and/or other skaters’ families: This, we believe, is not something we wish to have happen with the XSA Skating Fund. There have been cases where skaters and/or parents have tried to abuse the tax deductible aspect of our tax exempt status by making donations to each other and taking the tax deduction as a method of decreasing their skating expenses.
F. Coaches and arena management: However, if the administrators are sure that these funds are not used to pay a coach’s or the arena’s fees for lessons, ice time, and the equipment they supply, such donations may be allowed.
So, who’s left? A lot of sources! It takes a lot of work, time, and effort to get sponsors for skaters. It takes a lot of creative thinking, calling, and talking to find those people who believe they wish to spend some of their disposable income this way. There are many who are willing to do it. Unfortunately, most who are willing are not willing to let it be known that they are willing to be sponsors.
Hi, My name is Dan Kennedy. I believe my daughter has the gift and talent of ice skateing. She is so dedicated. We are finding at this point when she needs the best training possible that her mother & I are just not able to financially handle what it will take to bring her to her highest potential. She has the desire to rise up to the olimpics, but again we cannot afford this type of trainging. Can you help us with any specific donors or programs willing to Help
us with these costs. She is truly an inspirational skater with such talent.
thanks,
Dan Kennedy
My daughter has been skating since the age of 6. I had to pull her off the ice for about two and a half years because of money. She was so frustrated when she returned because people she had known earlier on had advanced so far beyond her. She has caught up and has shown phenomenal strength, endurance, perseverance and a stick-to-it that I have ever seen in a kid. I have constantly asked her if she truly wished to continue, but she states she loves it too much to quit now. How do I get information from your organization Anonymous to setup a sponsor for her?
The New England Amateur Figure Skating Fund is a 501 (c) (3) that you can register with that accepts funds ear marked for specific skaters and they DO take donations from relatives just NOT parents. So grandma, grandpa, aunts cousins, etc. may donate to them.
Also skating clubs can register with them as a fiscal umbrella to accept tax deductible donations.
This can be very helpful both to skaters and skating clubs.
check them out for specifics