More and more companies include charity events as part of their marketing budgets, fund-raisers say. It is an important distinction. The Internal Revenue Service limits the promotional benefits a company can receive if a payout is listed as a charitable deduction. If the company is clearly gaining marketing and promotional advantage, then it is to be considered simply a marketing expense and taxed accordingly. Rather than quibble, companies simply consider the expenses of sponsoring dinners and events as marketing costs and regard it full return for the investment.
Some companies even use public relations firms to manage their gifts.
Others prefer to get involved in politics, where rewards are more tangible. In the past, there was less worry about the return on their philanthropy. Gillig, of Children s Hospital, says some want access to the hospital s mailing list. It s been asked, five or six times a year, and the answer is always no, he says. In general, San Diego companies are giving more than in the past, fund-raisers say.