Sponsoring something (or someone) is the act of supporting an event, activity, person, or organization financially or through the provision of products or services.
The individual or group that provides the support, similar to a benefactor, is known as the sponsor.
If the University of Wisconsin–Madison provides financial support for an event, conference, etc. that is not held at the UW, then the UW is sponsoring this activity.
Sponsorship of events is considered a sponsorship award, which is tax reportable to the recipient.
How to process sponsorship payments
UW-Madison processes sponsorships on a Supplier Invoice Request (SIR); however, the funding source may not be General Purpose Revenue (GPR) funds and must adhere to UW System Administration Policy 330 – Prizes, Awards, and Gifts.
Sponsorships and donations are not allowed on the Purchasing Card.
Payments to UW System registered students are considered scholarships and should be processed per guidelines posted on the Payment to Students web page.
Payments to UW System employees should be processed per guidelines posted on the Payment to Employees web page.
Sponsorship Spend Category
UW–Madison sponsorships are processed using Spend Category SC00112 (Awards & Prizes).
Tax reporting of sponsorship payments
Sponsorships are a tax-reportable payment and must include a W-9 (link to irs.gov). This payment will be reported on a 1099-MISC (link to irs.gov) at the end of the calendar year.