Sponsorship
Sponsorship is a more formal arrangement with a local organisation and, again, the benefits are often mutual.
Whilst sponsorships can appear more commercial and are often more in line with a customer-supplier relationship (with the business as the buyer), there are many different forms, meaning that businesses can select the approach most suitable to their capacity, objectives and activities. These can include:
- Sponsoring a specific project or event
- Sponsoring a resource (e.g. website, vehicle, informational brochure) and then advertising on this
- Providing a scholarship
- Donations in return for promotion of your name and logo on stationery, at conferences and exhibitions
The possibilities are endless and it just takes a dash of creativity and an eye for an opportunity!
Benefits
Business benefits include:
- Increased return on your marketing budget: as well as your marketing goals, a sponsorship agreement with a local good cause should enhance your all-round reputation with employees, customers and the wider community.
- Improved access to and greater presence within the local community.
- New opportunities and different contexts, for example, different events or new audiences.
- Increased and improved public profile
- Increased customer base
Process
First steps
Select the right type of sponsorship for your business:
- What are you able to offer (e.g. financial or in kind support? regular donations? resources?)
- What are your objectives?
- Are you looking for a one off or long term interaction?
Select the appropriate voluntary sector organisation:
- What is their reputation like?
- How do they relate to your business objectives and activities?
- What benefits or opportunities do they present?
Making arrangements
Due to the more formal nature of sponsorships, any agreements should:
- Be written and signed
- Be agreed to by both parties
- Cover insurance and tax issues
There are often VAT implications to be considered and it is important that both parties clearly understand their position in relation to VAT. Guidance in this area is provided at the HMRC website.
Sponsorship Toolkit
