Policy statement: This policy provides a transparent process in the interest of public accountability. The system provides guidelines to the Sponsorship Review Committee and staff, as well as information for potential partners with an organization. In addition to supporting the business goals and objectives of the organization, the expenditure, promotion, and sales must adhere to the organization's Business Ethics Policy. All expenses must be tracked and recorded to ensure that the need for the expenditure is met.
Purpose: The purpose of the policy is to provide Sponsorship Review Committee with essential guidance on corporate sponsorship expenditure that complies with the organization’s policy and the overall marketing budget (Skildum-Reid & Grey, 2014). The organization has strong community involvement, and we are working towards sustainability and development of the communities within us. Since the organization is limited to the number of people it can reach with its services, we complement our programs through community-based activities and sponsorship partnerships.
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Scope: This policy applies to both full time and temporary employees and covers any sponsorship that is paid using the organization’s funds.
Definition of sponsorship: For this policy, "corporate sponsorship" is a mutually beneficial relationship that is entered between our organization and another entity, whereby, our organization provides funds, and in return, we receive recognition, acknowledgment and relevant promotional consideration (McDonnell & Moir, 2014).
Procedures for Implementation
In proposing budgets for sponsorship, the committee ensures that event’s budget and information regarding the other entity is accurate. The committee works with the event organizers and to develop the budget and clearly outlines how the organization will benefit from sponsoring the event. Additionally, specific requirements such as cost principles and sponsor regulations must be adhered to at the proposal stage, during and after disbursement of funds.
General Eligibility: For the organization to support an event, it must advance the interests of our organization which are community development and sustainability (Perkins, 2015). The organization will only sponsor entities or businesses with a track record of addressing key community challenges such as environmental conservation. The community challenges addressed should have measurable results and sustainable improvement to the community.
Specific Eligibility Requirements: The program or event must directly benefit our organization’s stakeholder and the community. The eligible organizations must have been operating in good standing for at least three years.
Decision-Making Process – The Board of Directors is accountable for the sponsorship policy and approval of individual sponsorship. For sponsorships less than $10,000, the decision is delegated to the Executive Director. For sponsorships of more than $10,000, the decision is made by the Board of Directors.
The following requirements apply the Sponsorship Review Committee and general staff:
A member of the committee or an employee is not allowed to solicit personal favors from the sponsored organization. Any recognition, promotion, and acknowledgment are directed to the organization and not individuals.
The sponsorship committee must present the budget and an agreement signed by both entities to the senior management 21 days before the event. The budget must have a budget justification and apply the relevant cost accounting standards (Carr, 2014). The agreement must clearly state benefits to our organization.
Each potential sponsorship agreement should be evaluated based on merits. The committees should raise the following questions (Solis & Li, 2013):
Would this be a good fit for organization’s image?
Does the sponsorship conflict with our values?
Does it suit our overall strategy?
Will the sponsorship help our organization realize its objectives?
The ethical filters to be considered are before signing a sponsorship agreement are environmental, health, disclosure and accountability.
References
Carr, C. (2014). The nuts & bolts of grant writing . SAGE Publications.
McDonnell, I., & Moir, M. (2014). Event sponsorship . London [u.a.]: Routledge.
Perkins, L. (2015). The Community Manager's Playbook: How to Build Brand Awareness and Customer Engagement . Apress.
Skildum-Reid, K., & Grey, A. (2014). The sponsorship seeker's toolkit (4th ed.). McGraw Hill Professional.
Solis, B., & Li, C. (2013). The seven success factors of social business strategy . San Francisco, Calif.: Jossey-Bass.
