Revenue from corporate sponsorships and corporate contributions should not be grouped together because they come with different expectations. The biggest difference between revenue generated from corporate sponsorships and revenue generated from contributions from corporations is what the corporation expects in return.
Corporate contributions are given to your organization for the good of the cause, there are no commercial incentives for the corporation. Your organization will generally thank and recognize the corporate board members or executives for the contribution. This recognition can be anything from a program listing, a listing in your annual report, or a photo opportunity for the corporate board members/executives to present your organization with the contribution.
In return for buying a sponsorship, a corporation expects a level of visibility and recognition for the corporation or the corporation's leadership. A sponsorship is based on a business proposal with mutually-agreed upon benefits for both the corporation and the organization. For example, if a corporation is sponsoring an event for your organization there should be proper visibility for the corporation on the event invitation, marketing, and/or program. |
