[SoftTalker]

Talk to an accountant. As I understand it, in the USA, "donations" are not deductible unless they are to a bona-fide charity/501(c)(3) type of organiztion.

To be deductible as advertising, I would think the payment would need to be be explicitly for advertising services, not a dontation with the side-effect that you are recognized and thanked on a list of donors. That's just a courtesy, not an advertisement.

[pcthrowaway]

Hmm.. I would hope it's deductible if the software listed sponsorship as an advertising service, and put a price on the services accordingly.

I can't imagine this is too different from paying a youtube or social media influencer to promote your product, or paying for an ad spot on a podcast.