Sponsorship is a mutual agreement under which one party, the sponsor, provides monetary or other support in return for opportunities to communicate which derive directly or indirectly from the other party's professional activities. Such an agreement is intended to benefit both parties.
Sponsorship is often regarded as a last resort or some kind of panacea to cover a project's budget shortfalls, but it is not really helpful to view the relationship with a sponsor in that way. The expression ‘you scratch my back and I'll scratch yours’ probably applies more in sponsorship than anywhere else. When applying for it, you must show that you are offering the sponsor benefits and that your activity suits its aims and market strategy. And you need to calculate your own expenses carefully, to make sure that your outgoings do not exceed your expected income. So put things down on paper before you begin.
Examples small scale sponsoring
- Some manufacturers are not too wretched to give you their ‘waste’ (for example iron, cardboard or plastic). For example for building a decor.
- Via the Muziekinstrumentenfonds companies can support excellent musicians
- Someone who works with gelatine can appeal to a gelatine factory with a good promotion plan in hand. If a lot of attention can be generated through exhibitions and publications, then the factory may be willing to supply the material in exchange for mentioning the brand name on posters, etc.
An ANBI is a public benefit institution. If you have this status, individuals and businesses get tax rebate when they give you a donation or sponsor you. Some funds also call for this status. If you are a cultural ANBI your sponsors get even more tax rebate.
To be considered an ANBI by the Tax Office you must meet several conditions:
- the purpose and activities must serve the public interest to 90%
- in practice, only foundations or associations can become ANBI's, because you are not allowed to make any profit
- to be regarded as a cultural ANBI 90% of activities must take place in the cultural field.
- see all conditions on the site of the Tax Office.