By Stephanie Webster

Inquiries into the sponsorship industry tell us there is a lack of understanding of sponsorship as a component of the marketing mix. Further, there is a gap in understanding sponsorship versus donations or philanthropic endeavors.

In 1998 the Canadian government, through the Standing Committee on Canadian Heritage, defined sponsorship as “a cash or in-kind fee paid (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential of association with the program or event.”

The 2004 CFPSA NPP policy on sponsorship mirrors the definition put forward by this committee. The NPP policy states that sponsorship “is the officially recognized provision of financial or product-in-kind support to an NPP organization...in exchange for a defined benefit.”

This differs significantly from a donation. A donation is a gift, and is transferred gratuitously. As such, there is no exchange for benefits through marketing.

A sponsorship is not an advertisement. Advertising is the direct promotion of a product or event through the purchase of space (print, broadcast etc.). Advertising is sold in terms of cost related to impressions, (the number of times the advertisement is seen).

Sponsorship is different in that it has both tangible and intangible properties. It can positively impact programs and enhance value to participants.

Try to create sponsorship packages to promote affiliation with your program or event in exchange for cash or product-in-kind that will directly impact your program delivery.

Ms. Webster is the Media Relations Coordinator at CFPSA. She has worked in the sponsorship and marketing industry assisting a number of National Sports Organizations and is completing her Master’s Thesis in sponsorship and consumer behaviour.