The Symetra Tour is the developmental tour for the LPGA.
This upcoming weekend, SEFCU and Sunmark FCU are sponsors of The Credit Union Challenge, which will be played in Albany.
It is probably only a matter of time before we see credit unions sponsoring events on the LPGA tour or even the Web.Com tour (use to be the Nationwide Tour).
While becoming title sponsors of professional golf tournaments may improve brand recognition for credit unions, it has nothing to do with their tax-exempt purpose.
It does raise the question why large credit unions remain tax exempt.
Marketing expenses and tax exemption are mutually exclusive. What's the difference between sponsoring a golf tournament and giving away pens with the credit union logo on it?
ReplyDeleteEven if credit unions were taxed, the taxpayers would pick up a share of the expenses as a tax deductible expense. That is today's occurance when banks sponsor athletic competitions, arenas or stadia.
ReplyDeleteWhy do banks have a federal corporate tax exemption under Subchapter S? Inquiring minds are just asking!
Dear Inquiring Mind:
ReplyDeleteSubchapter S banks do not have a federal income tax exemption. They are pass through entities and are taxed just like partnerships.
Dear Dr. Leggett:
ReplyDeleteThe owners of Sub S banks only have to pay one set of taxes at the individual level. The owners of C corp banks have both the corporate taxes paid and taxes paid on dividends/capital gains. Thus the Sub S banks have a tax advantage that has been estimated in the $200 million per year range (2000 numbers).