09 Oct Understanding The Differences Between Corporate Sponsorship And Corporate Philanthropy
Corporate philanthropy and corporate sponsorship are not the same.
Here are six 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.
- Corporations seek to enhance their 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, nonprofit or a for-profit brand.
- 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.
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.