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(March 1, 2005)
Introduction
In his book Marketing for Non-Profit Organizations, author and professor of international marketing Philip Kotler defines advertising as “Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.” In the context of Web sites, advertising can be recognized by the use of banner ads, corporate and product logos (depending on context), value statements (“leading supplier”, “best deal”, “no. 1,” etc.), links to commercial sites, and statements urging actions resulting in commercial transactions (“buy now,” “don’t miss this opportunity to order,” etc.).
The presence of a corporate or product logo on a University Web site, or the ability to conduct University business via electronic transactions external to the University, do not in themselves constitute advertising or commercial content. Corporate/donor acknowledgement is permissible within guidelines, provided it does not imply endorsement, support, or advancement of any product or service.
Purpose
The UCLA Guidelines for Advertising and Other Forms of Acknowledgement on the Web are intended to provide Web administrators and designers, department heads and other Web content decision-makers with basic principles, supported by examples, of acceptable and unacceptable advertising and acknowledgement on UCLA Web sites. These principles are based on the California Education Code and University of California policy, which clearly define the manner in which the name “University of California” and all of its various forms and abbreviations, logos and trademarks may or may not be used. In general, the expressed or implied endorsement of a product, service or position external to the University may not appear on a UCLA Web site. Certain types of advertising or acknowledgement on the Web may be permissible as described in the following matrix.
In addition, these Guidelines are intended to alert campus personnel to the potential federal income tax consequences associated with permissible types of advertising activities. The tax principles are based on existing tax laws and regulations under Internal Revenue Code Sections 512 and 513, pertaining to Unrelated Business Income Tax (UBIT) for Tax-Exempt Organizations. For more information, contact UCLA Tax Services at (310) 794-6724 or go to their Web site:
UCLA Tax Services
Guiding Principles for Advertising on the Web
- Any advertising, overtly favorable acknowledgement, or endorsement of third-party products and services on a UCLA Website is not permitted. Using a UCLA site to promote a UCLA extracurricular activity (such as Performing Arts or Athletics) is considered permissible advertising.
- UCLA Web sites must not subject students, faculty, and staff to commercial messages not under the auspices of the University in the conduct of UCLA’s core academic and administrative activities. This is a violation of University policy. More leeway is appropriate for sites related to sanctioned extracurricular activities or information (e.g., the Alumni Association, Project Literacy UCLA, etc.).
- Commercial and quasi-commercial content on UCLA Web pages should:
- be directly related to the core business of the University and to the specific instance of that business represented by the Web page in question (e.g., the UCLA Conference Center Web page describing Lake Arrowhead and its amenities);
- contribute to the greater good of the University;
- be consistent with existing policy and guidelines.
Guidelines for Corporate Acknowledgement
Consistent with the University of California status as a charitable organization, campus departments may acknowledge corporate/donor contributions they receive, as long as the acknowledgements do not promote the sponsor and do not contain comparative or qualitative descriptions of the sponsor's products, services, facilities, or companies. An acknowledgement of this type is excluded from income tax. Acknowledgements that do not adhere to these guidelines and that are determined to result in income to the University may be subject to Unrelated Business Income Tax (UBIT).
In general, allowable forms of acknowledgement include:
- name of the sponsor in the title of the event;
- sponsor logos and slogans that do not contain qualitative or comparative descriptions of the sponsor’s products, services, facilities, or company. Sponsor’s logos and slogans that are an established part of the sponsor’s identity are not considered qualitative or comparative descriptions;
- sponsor brand or trade names; and
- lists of contributors to an event or organization.
For More Assistance...
- For examples of acceptable and unacceptable Web site content, see
Acceptable Use Matrix
- For questions concerning advertising and acknowledgements on the Web, including third party use of the UCLA name on their Web site, contact UCLA External Affairs, University Communications at (310) 794-6968; email: marketing@support.ucla.edu.
- For questions concerning income tax liability, contact UCLA Tax Services at (310) 794-6724 or go to their Web site:
UCLA Tax Services
Acceptible Use Matrix
Content under consideration |
Type of Web site
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Is the content allowable?
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Banner or other advertising space for third-party product or service |
Student publications on-line |
Yes. The solicitation, sale and publication of advertising conducted by students contribute to the academic mission of the University by providing practical, real-world training and experience to students and should be allowed. Such advertising income is not subject to unrelated business income tax. |
Student Web sites (not on-line publications) |
No. Sale of advertising and commercial content are not directly related to the core purpose of the academic enterprise. |
Other on-line publications (such as magazines or newsletters) |
Yes. Advertising revenue in this category will generally be subject to unrelated business income tax.
Exceptions: “official” print publications (e.g., general catalog) should be free of commercial content, per University policy.
Rule of thumb: necessary information should be ad-free; optional information allows for more leeway.
A print publication may be constrained by U.S. Postal Service regulations from accepting advertising; these constraints do not apply to the on-line version. |
Course Web site |
No. Rule of thumb: necessary information should be ad-free; optional information allows for more leeway. |
Academic or administrative unit |
No. Sale of advertising and commercial content are not directly related to the core purpose of the academic enterprise. |
Sites for Athletics, Alumni, ASUCLA, Performing Arts (auxiliary enterprises with a significant external audience) |
Yes. Disclosure should be made if appropriate (for instance, when the Alumni site had shopping links, the site stated that links were provided because a portion of purchases was rebated to Alumni). Advertising revenue in this category is generally subject to unrelated business income tax. |
Sites (or pages) for one-time events |
Yes. Advertising in this category is generally subject to unrelated business income tax. |
Sites for independent student groups registered with Center for Student Programming) |
No. Sale of advertising and commercial content are not directly related to the core purpose of the academic enterprise. |
| Sponsor’s logo |
Any UCLA site |
Yes. As long as “value statements” are avoided (comparative or qualitative descriptions), a sponsor’s name or logo is an allowable form of acknowledgement. See Guidelines for Corporate Acknowledgement. |
| Product logo for browser, search engine, technology used on site |
Any UCLA site |
Yes, if the logo accurately reflects use of the product and there is a logical connection between the site content and the product (e.g., QuickTime logo for movies in that format). |
| Corporate logo for research partner or other formal relationship |
Any UCLA site |
Yes. As long as a brief disclosure statement is included, industry partners may be recognized on UCLA Web sites. If necessary, a disclaimer may be added re: endorsements. |
| Credit card logos to identify acceptable forms of payment |
Any UCLA site |
Yes, if the e-commerce itself is acceptable.
First test: is the transaction related to the unit’s primary purpose?
Second test: have proper precautions been taken as to privacy and security?
Logos should be displayed in a logical context – that is, connected to the transaction rather than on a home page. |
| Links to commercial home page sites, versus directly linking to on-line store of the sponsor |
Any UCLA site |
Yes, with reservations. While a disclaimer is a good idea (“UCLA does not endorse any product or service”), most users understand that a link that takes them to a new, non-UCLA site does not constitute an endorsement or warranty by UCLA.
Peripheral concern : sponsors, suppliers or partners should not attempt to make their Web pages visually indistinguishable from UCLA’s, nor do they have the right to use the UCLA name or trademarks (see UCLA Policy 110).
Tax note : Links to on-line store pages may be problematic and construed as taxable advertising and are therefore discouraged. |
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