Charity Event Commercial Sponsorship Agreement
This Charity Event Commercial Sponsorship Agreement is for use by a small or large charity running an event for which it has secured a non-exclusive financial sponsor. The payment helps fund the event or contribute to the charity’s funds. The sponsor will be a business which wishes to be associated with the charity and its event.
This template will be suitable for most types of fairly uncomplicated single events, and it provides for a single sponsorship fee payment to the charity for commercial services the charity is to provide to the sponsor. In return for the payment, the charity agrees to provide a number of specific sponsorship benefits for the sponsor, including using the sponsor’s name, logo, or trade mark to promote the sponsor’s business and to link the sponsor with the event.
Whilst the Agreement includes provisions in favour of the sponsor (since it is paying for services), it also contains limitations of liability and other provisions in favour of the charity to help to protect the charity, both in connection with organisation of the event and its permission to the sponsor to use the charity’s name.
The payment by the sponsor is for services provided to it, not a donation by it, and it may qualify as a tax deductible business expense of the sponsor. The charity may have to charge VAT on the payment/s, and it may wish or need to enter into the Agreement through a subsidiary trading company instead of through the charity itself (in which case it would have to be amended to include the subsidiary). Tax advice should be taken by the charity (and the sponsor) to check the position in each case.
This template has been updated to comply with the requirements of the UK GDPR (UK General Data Protection Regulation).
We have further forms of Agreement, a Sponsorship Agreement (Long) and Sponsorship Agreement (Short). Both are in the “Event Sponsorship” subfolder in the “Commercial Agreements” group in the Business folder. They may be used by a charity or any other type of organization, but they are written more in favour of the sponsor than the Charity Event Commercial Sponsorship Agreement. The longer form is more sophisticated, for use where the size of one or both parties is large, the amount of sponsorship is fairly substantial, and more than one sponsorship payment is or may be made. The shorter form is for other cases.
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
This agreement is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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