Sponsorship can be an invaluable resource for gaining funding for an event or fund-raiser. Relying on the generosity of a company or individual can do wonders to benefit your organization. However, it is important to finalize a written contract that will add formality and legal recourse to your sponsorships. This is not to “lock down” your sponsors, but to ensure that both the sponsor and the receiving party are clear about what is being asked of both parties.
Format your sponsorship contract on formal company letterhead, if possible. At the top of your first page, include the organization information and logo. Title it, “Sponsorship Agreement.”
Include a section for the date of the agreement. Also include the contact name, position title, telephone number, fax number, e-mail address, and Web address of both the organizer and sponsor. The parties should be referred to as “the organization” and “the sponsor.”
Detail the intent of this sponsorship. Explain how the organizer will use this sponsorship to better the organization and fulfill its mission. This is not a mission statement, but a very clear representation of how the sponsorship is to be used.
Specify the value of the sponsorship. Include detailed information on the cash value of the sponsorship, the labor agreement and any other specifics of the agreement. Give detailed descriptions of all promised activities from both the organizer and the sponsors in order to make it very clear what is expected of both parties. If this is a sponsorship for a specific event, be sure to include the dates when the sponsorship details must be accomplished.
Explain in detail the consequences of not fulfilling the agreement for both the organization and the sponsor. Should the sponsor fail to contribute what he or she promised, there must be an agreed-upon course of action. Likewise, should the organization fail to hold up its end of the bargain, there should be similar agreed-upon repercussions.
Have both the representation of the organization as well as the sponsor sign and date each page on the the agreement. Also, have a witness to the signings of this agreement be present and on-hand to sign the contract as well. If necessary, have the document signed and notarized by a licensed notary.
Attach any legal documents related to the agreement. Allow a space on each attached document for signing or initialing from both parties, noting that each side is aware of how these documents relate to the signed agreement.
- Photo by Mike Johnson from www.sxc.hu