Glossary Of Corporate Sponsorship Terms

 

These are some of the terms you may encounter as you develop your corporate sponsorship program:

 

Authentic Alignment Proposition: Anisha’s term for creating a natural and mutually beneficial opportunity for a sponsor to participate with and support your organization.

Annual Report: Voluntary report issued by a foundation or corporation that provides financial data and descriptions of grant making activities. Annual reports vary in format from simple typewritten documents listing the year’s grants to detailed publications that provide substantial information about the grant making program.

Cause-Related Marketing: Cause-related marketing (CRM) is defined as the public association of a for-profit company with a nonprofit organization, intended to promote the company’s product or service and to raise money
for the nonprofit.

Company-Sponsored Foundation (also referred to as Corporate Foundation): Private foundation whose grant funds are derived primarily from the contributions of a profit-making business organization. The company-sponsored foundation may maintain close ties with the donor company, but it is an independent organization with its own endowment and is subject to the same rules and regulations as other private foundations.

Corporate Giving Program: Grantmaking program established and administered within a profit-making company. Corporate giving programs do not have a separate endowment and their annual grant totals are generally more directly related to current profits. They are not subject to the same reporting requirements as private foundations. Some companies make charitable contributions through both a corporate giving program and a company-sponsored foundation.

Distribution Committee: The board responsible for making grant decisions. For community foundations, it is intended to be broadly representative of the community served by the foundation.

Employee Matching Gift: Contribution to a charitable organization by a company employee that is matched by a similar contribution from the employer. Many corporations have employee matching gift programs in higher education that stimulate their employees to give to the college or university of their choice.

Exclusivity: Indicates if a sponsor has exclusive rights to the sponsorship.
In-Kind Contributions: Contributions of equipment, supplies, or other property as distinguished from monetary grants.

Some organizations may also donate space or staff time as an in-kind contribution.
Matching Grant: A grant that is made to match funds provided by another donor. (Also see Employee Matching Gift)

Morals Clause: Allows for termination a sponsorship agreement if the company, or principals of the company, engage in illegal activities or otherwise create scandal that risks harming the publisher’s reputation.

Query Letter: A brief letter outlining an organization’s activities and its request for funding sent to a foundation or corporation to determine whether it would be appropriate to submit a full grant proposal. Many grantmakers prefer to be contacted in this way before receiving a full proposal.

Sponsor Objectives: A summary description of the sponsor’s business objectives for the sponsorship (for example, to increase brand awareness with a specific audience).

Termination: Identification of the conditions and circumstances under which the sponsorship agreement might be terminated by either party.