Corporate sponsorship attracts the attention of for-profit businesses because sponsorship publicly recognizes the company`s association with a particular charitable cause, which can help businesses attract new customers or boost the company`s reputation due to the “halo effect” of the nonprofit`s goodwill. Nonprofits, in turn, receive financial support and may also receive increased media and public attention, in-kind benefits, and/or product donations. A sponsorship agreement describes the legal details between a sponsor and those who must enforce the sponsorship obligation. It also includes the fees for the service, the duration of the agreement and the responsibilities of the parties. While the packages you provide describe what a sponsor is buying, a referral agreement offers something that is legally binding. It`s really helpful to make sure that your sponsorship proposals are very clear, as this will allow you to base your agreement on something stronger. If your agreements are created using the same list for each respondent, you can secure your agreements and ensure that both parties are fully aware of and understand the expectations placed on them. Then more information should be included that describes the important conditions for each individual sponsorship. This is the essence of your agreement and provides a comprehensive list of specific conditions with the following details: The last thing you want is for a sponsor to give up at the last minute. You also want to be able to walk away from a sponsor if you discover something that conflicts with your ethics or brand. Therefore, you need to make sure that your agreement describes in detail how your relationship can be terminated and what penalties apply to both parties.
The most important details for a termination would be how much termination is required and how much termination will cost. Sponsors usually insist on a clause that explains what is expected if your event does not bring the benefits you advertise, or if an event is cancelled or you do not meet certain criteria. Statements that allow for reimbursement are often requested by promoters to ensure they get what they pay for. This is often a percentage of the funds they paid, but depending on the severity of the problem, a full refund may be included. The level of participation often varies greatly from sponsor to sponsor, from a company that simply delivers products to a venue, to an assistant sponsor with keynote speakers, to entertainment or catering at a grand dinner, to the name of an establishment, program or event. The more complicated the degree of participation, the more important the sponsorship sales contract becomes. While it can be tempting to have a standard deal, it`s always best to adjust the details for each sponsor involved to include the details. In this way, there is no room for misunderstanding.
The very first thing to do when creating a sponsorship contract is to consult a lawyer. This article is provided for informational purposes only and is not intended to replace the advice of a lawyer. However, the basics of a sponsorship agreement often include: referral sales require a clear agreement with defined roles and responsibilities to be successful. As a marketing tool, you can connect with the right brands and products to improve your relationship with your audience while connecting with your audience, members, fans, or donors. Events bring you into the community to create experiential moments that help increase brand awareness, while sponsorship helps create credibility and much-needed funding. Is your nonprofit ready to contact a corporate sponsor? Consider these “preparation factors” before contacting a corporate sponsor: in the event of disagreement at any time, the parties will refer the matter to an independent arbitrator, who will be appointed by mutual agreement. To ensure that the needs of both parties are met, a sponsorship agreement is established in the form of a contract specifying the details that each party agrees to. Sponsorship ensures the credibility and financial support of your events.
A well-thought-out sponsorship sales contract provides the legal contract needed to make both parties happy. They avoid confusion, build stronger relationships, and look forward to continued support for future events. Well-designed agreements are the glue that holds your sponsorships together and allows both parties to participate without worries. Be sure to add a statement stating that the agreement is the entire agreement and that the oral statements discussed are not included to avoid possible litigation in the event of a dispute. If at any time you make changes to the sponsorship agreement, be sure to change the contract. Your lawyer can give you advice on how best to change the contract in case something changes. Successful corporate sponsorship benefits both the nonprofit and its sponsor. However, there are tax issues to consider: for business sponsorship to be appropriate and legal, the benefit to the for-profit entity should not outweigh the benefit to the tax-exempt nonprofit. 8.2 This Agreement shall be governed by and construed in accordance with the laws of the State [Name of State] applicable to agreements entered into and to be performed in full in that State.
We have already mentioned the non-competition clause, but it goes even further in exclusivity. It describes the details of your contract and the exclusive rights to which a particular sponsor may be entitled under the package they purchase. For example, a sponsor may have exclusive rights to have their logo appear on stage for major events, or be the only food vendor authorized to sell food at your event….