It’s important to recognize the differences between corporate philanthropy and corporate sponsorship. Here are seven distinctions:
- Corporate philanthropy is motivated by altruism and supports a socially beneficial cause without financial or material reward to the corporation.
- Philanthropic gifts could include donations of money, goods, services, and time.
- Corporate philanthropy is often managed by an internal community relations team or a corporate foundation. The corporation aims to enhance its image and promote goodwill with stakeholders and the community.
- Corporate sponsorship is a mutual business proposition that offers value in exchange for money. Sometimes referred to as cause-related marketing, corporations get a return on their “investment,” enhance their profile, associate their brand with a cause, and or attract customers who support that cause.
- Sponsorship typically involves a contractual relationship between a corporation and a non profit, for profit brands
- Another distinction between the two is that some sponsorship costs are eligible for a write off as a full business expense, including: television and digital media placement, co-branded promotional products, and printing.
- If you are a for profit entity, consider partnering with a no- profit that shares your goals. The non-profit can submit proposals on your collective behalf.
This is not an exact science. Increasingly, the line between philanthropy and sponsorship has blurred as some corporations create a hybrid between the two types of giving.