How Does Sponsorship Work?

sponsorship-work Credit: GNGHFoundation/CC-BY-2.0

Sponsorship involves a benefactor supporting an individual, event or group in exchange for the ability to commercially exploit the association. The support can be financial or material by supplying needed equipment or services.

The commercial gain obtained by a sponsor is in the form of public exposure for its brand. This often takes the form of the sponsor's logo being displayed dominantly. Sponsorships are different from donations in that a donation does not require any reciprocation. Sponsorships can be included as part of marketing strategies but are not considered advertising. Events or organizations with multiple sponsors often create tiers for the exposure that they offer to their individual sponsors based on the size of the sponsor's support.