Sponsorship Agreement

What is a Sponsorship Agreement?

A sponsorship agreement is a legally binding contract between the sponsor and the organization seeking sponsorship. This agreement clearly outlines:

• details of parties involved;
• mutual rights and responsibilities;
• liability clause and important legal disclaimers;
• details of the event, podcast, or campaign for which sponsorship is required.

Typically, the parties involved in a sponsorship agreement contract are the sponsor and the organization. The sponsor could either be an individual, legal entity, or business that provides financial support, goods, or other perks in exchange for promotional opportunities. An organization is a profitable or non-profitable entity that is seeking sponsorship opportunities.

How to write a sponsorship agreement template?

The wording of a sponsorship agreement template should be clear and unambiguous to be able to reflect the initial parties’ intentions. Apart from that, inclusion of certain mandatory elements is essential to make the text of a contract full and complete.

Event, campaign, podcast, or more

Despite a document’s complexity, even a simple sponsorship agreement sample shall provide the purpose of the sponsorship. In fact, parties define information like dates, location, and agenda of a planned event or campaign.

Besides that, it is also vital to define if a sponsorship shall be exclusive or not. If a sponsorship is exclusive, it means that an organization cannot engage other parties who directly compete with a selected sponsor. For example, most probably Coca-Cola will refuse to share the spotlight of the World Cup with Pepsi or vice versa.

Finally, the text of a contract shall also lay out that sponsorship contribution cannot be revoked.

Details of Sponsorship Contribution

A must-have for every good sponsorship agreement example is a detailed description of a sponsorship contribution. It may have various forms:

• financial support;
• free goods or branded items (e.g., clothes, beverages, pencils);
• additional perks (e.g., discounts on services provided, free tickets, etc.)

If a sponsor provides financial support only, the text of a sponsorship agreement should define the exact amount and how it shall be paid (e.g., in full on a specific date or in installments).

If, however, a sponsor will deliver free goods or perks, then the text of a contract should describe their quantity, purpose, and delivery schedule.

Sponsorship Benefits

Unlike in a donation agreement, under a sponsorship agreement contract, an organization provides their sponsor with certain marketing, advertising, or promotion benefits. Those benefits may have various forms, including:

• logo or brand placement;
• verbal acknowledgment;
• placement of banners;
• mentioning in press releases, etc.

Intellectual Property Rights

Every sponsorship agreement sample shall address how parties may use each other’s logos, trademarks, or other branding materials. For instance, an organization may need a short-term royalty-free license to use a sponsor’s trademark or logo to be able to put them on the event’s marketing materials.

It is also advisable to limit given rights solely to the purpose of sponsorship relations. Inclusion of such a legal disclaimer directly in a contract protects each other party from potential IP infringement.

How to customize a sponsorship agreement form at Faster Draft?

To get a fully personalized legal document template, follow a few easy steps below:

1. Click the button “Create Document.”
2. Answer simple questions in the form.
3. Select a document’s format—sponsorship agreement template Word or PDF.
4. Make a payment.
5. E-sign, download, print, or send it out to your counterparty in minutes.