Originally Posted by jacklemoine

I have another question.

I don't understand how the SP Foundation handles sponsor donations. I
see from reading the IRS 990 that you don't run the donations through
the Foundation books. You (Paul) stated in the candidates threads
that sponsors give money direct.

How does this work?

My understanding of how tournaments are run, is that the money has to
be put into a fund and then out of that fund tournament expenses are
paid, trophies purchased, and prize money distributed. To have each
sponsor make their own arrangements seems combersome, to say the
least. Moreover, how can Susan retain control if she doesn't have
control of the money? For example, what does if she do if a sponsor
does not furnish the specific prize that he has committed to?

Moreover, for tax purposes, I don't understand that, either. If I was
a sponsor, I would want documentation. If I gave a prize to some
individual for a chess tournament, I would worry about the charitable
deductability of that. However, if I donated the money to the SPF,
then my acknowledgment from Susan would be my document. Surely almost
all of your sponsors want to be able to deduct their money/in-kind
gifts, don't they?

Hopefully, your answer to this will encourage and educate other chess
organizers out there, too.