Sponsorship Agreements: Practical Tips And Considerations

Many businesses use corporate sponsorship as a mechanism for marketing or giving back to the community.

If the sponsorship is significant, the parties may consider entering into a sponsorship agreement. Some organizations may consider implementing an internal policy that a sponsorship agreement is required for any financial donation in excess of a specified threshold (e.g. gifts over $5,000).

Sponsorship agreements typically provide an obligation on the sponsor to make a payment or other in-kind donation to the recipient and outline the terms upon which such payments will be made (for example, who the payment will be made to, in what form, and on what date). The agreements also usually outline the recognition or other rights the sponsor is entitled to receive on account of making the gift.