Why now? Why should schools explore corporate partnerships now?
The funding model for school districts is broken in every state throughout the U.S. On average, three out of every four tax and bond levies fail. Federal and State funding is being cut back at epic proportions. In some states such as Ohio, the State Supreme Court ruled in 1997 that the state’s system of funding school districts was unconstitutional. On March 24, 1997, Justice Francis E. Sweeney for the majority opinion “By our decision today, we send a clear message to lawmakers: The time has come to fix the system. Let there be no misunderstanding. Ohio’s public-school financing scheme must undergo a complete systematic overhaul.” Despite fifteen years passing since the courts ruling, Ohio is still waiting for a new formula that is bold and transformative. This scenario is being played out in state after state across the country. As school districts now face disastrous budget decisions affecting the most basic of educational services that they are required to provide, there is no funding relief in sight.
As athletics, extracurricular activities, busing, classes, teachers and resources continue to be cut parents are more open than ever to schools that are exploring alternative streams of revenue. In recent polls, over 80% of parents approve of corporate sponsorships or advertising in school districts as long as it is education appropriate. Public Universities that are tax supported have reaped millions of dollars in corporate funding over the years and it is commonplace and accepted at the collegiate level. The time is now for K12 administrators to enact partnerships that brings critical revenue to their districts!
Isn’t it the governments responsibility to fund public school districts?
Funding models are irrevocably broken. Educators who got into education to teach young minds are now burdened with a never-ending cycle of selling political outcomes to a tax weary public instead. Forward thinking districts are being proactive in the branding and marketing of their schools, and are showing the leadership necessary to open new and alternative streams of revenue.
What are the types of sponsorships that are deemed education inappropriate?
Off limit marketing includes anything that involves alcohol, tobacco, sex, violence, firearms, and drugs. In addition, messages that do not promote healthy lifestyle or food choices, or those not in keeping with the goals and purposes of the district would not be an option. Each district’s Board of Education will retain all rights to accept or reject any corporate, commercial or promotional sponsorship.
Is corporate advertising considered taxable income for a school district?
Every district should always consult and rely on their own tax attorney’s first and foremost. However as a rule of thumb, Hunter Education Capital is able to make certain that any corporate revenue adheres to the IRS guidelines of a “Qualified Sponsorship Payment” or “Qualified Sponsorship Event”.