Sponsor me!

KEY POINTS

• Purpose of sponsorship.
• The duality of purpose argument.
• Value of sponsorship to the donor and donee.
• Possibility of apportionment.
• Make sure transactions are well documented.

Many businesses make payments to organisations as sponsors of cultural and sporting activities. The payments can be for specific events or to support an individual group or team.

Sponsorship payments are usually seen as a form of marketing or advertising in which a business pays for a project or programme in exchange for heightened recognition and an increase in business contacts.

Business logos and brand names are usually displayed together with specific mention that the business has provided funding. For many organisations in receipt of sponsorship payments their activities would not be commercially viable without them.

The decision to make sponsorship...