A sponsorship agreement template is a legal contract which binds two parties- the sponsor and the sponsored team. In this agreement, a company or organization agrees to support a different business. There are multiple ways that a sponsor can do this. For example, there is a small event hosted by someone that is not quite famous. So, in order to make more contacts and to gain profit from this event, the host needs someone that is superior to them and has more contacts to sponsor their event. This way, the host gains more profit from the event and makes more contacts. However, sometimes the profit gained by the sponsored party is divided (the sponsor gets 60% while the sponsored party receives 40%).
A general sponsorship agreement should be concise yet to the point, but at the same time it should not lack any crucial information. All the terms that are mentioned in the agreement should be legally based. It is a must to write down all the things that you want the opposing team to be aware of. A rough idea on how to form an agreement is mentioned below:
• The date on which the agreement is being initiated.
• The purpose of the agreement.
• The name and specifications of both parties. It is very important to mention who is the organizing party and who is the sponsor. At the same time, their contact information, an address, is mentioned.
• Now the most crucial part of the agreement. Here, the sponsor states that they have indeed agreed to give financial or other support to the organizing party.
• The next main thing is the payment and how it will be processed. the amount of payment expected; the date on which it should be received, and how it will be processed (via debit, credit, cash or check).
• The time period till which the agreement will be active. This determines till what time both parties are bound together.
• Now the terms and conditions on which both parties have to mutually agree in order to seal the agreement form. This is the part where all the conditions should be mentioned in a crystal clear format to avoid misconceptions and doubts.
• The advertising or promotional rights must be cleared.
• At the end, both parties are required to do their signature which seals the deal.
A sponsorship agreement benefits both parties greatly. Some of the benefits are listed below:
1- The sponsor gets more prominent and this helps them expand their business or organization and gain more customers. This way the money that they put into the organization to help support it, comes back to them in the future.
2- The organization that is being supported gets the chance to make itself known to the people. The more people that know about their organization through the supporter, the better the chances for them to grow their business. Mostly, this is very helpful for new companies that have recently set foot into the market.
Template for Sponsorship Agreement
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