Sponsorship
Sponsorships are more formal arrangements and often require the signing of an agreement which details the terms of the relationship.
They can assume many forms, from a relatively small payment for a one off event or product, to a large scale partnership, more commonly referred to as 'cause related marketing'.
The Benefits
Businesses can find sponsorships an attractive option as they offer:
- Positive publicity through being associated with a charity;
- An opportunity to develop their relationship with the community or demonstrate Corporate Social Responsibility;
- A clear agreement with specific objectives and outcomes;
- One off involvements and the possibility of interacting with a range of charities in a range of contexts.
For voluntary sector organisations, the benefits are equally appealing as they may be able to:
- Afford a resource that would have been too expensive for them to pay for alone;
- Benefit from the expertise offered by the business;
- Access new markets through being associated with a business.
Given such a public association, it is very important that you choose the right partner - a health charity partnership with a cigarette or drinks company would be an obvious mis-match!
- Does the business demonstrate the same values as your organisation?
- What is the business' profile like - and how will this reflect on your organisation?
- Do you share objectives, markets, products or any other similar features?
Sponsorship opportunities include:
- Advertising on vehicles: Community Action Dacorum has a fleet of nine minibuses each decorated with the livery chosen by the relevant sponsor.
- Football kits: This is a popular way of showing community support and engaging with a younger audience, as well as demonstrating a commitment to health.
- Information brochures or websites: These can present ongoing publicity for the sponsor and lead to a more cost effective resource for the voluntary sector organisation.
- Events offer an opportunity for targeted publicity. Think about the type of event and the audience that is will attract.
- Providing a scholarship for individuals students or bursaries for small organisations to attend conferences can build capacity for voluntary sector organisations.
- For large scale sponsorships, explore the resources and support available to ensure that you are well prepared and informed.
Case study – Watford New Hope Trust
Over two years, Watford New Hope Trust, a charity providing homeless people with a range of welfare and accommodation services, has developed a working relationship with a UK company that provides payment services worldwide for banks and other businesses.
The company has undertaken a team-building exercise for one of the charity’s projects and organised a sponsored walk to raise funds for their Annual Report.
Considerations
There are VAT implications to consider with sponsorship, particularly for the charity involved. It is important that both parties clearly understand their position with relation to VAT and, ideally, the company would agree that the sponsorship payment should cover any VAT payable.
Sponsorship Toolkit
