Nonprofit Sponsorship Agreement

SPONSORSHIP AGREEMENT

This Sponsorship Agreement (this "Agreement") is entered into as of [DATE] (the "Effective Date") by and between:

NONPROFIT ORGANIZATION:
[ORGANIZATION NAME]
[ADDRESS]
[CITY], [STATE] [ZIP CODE]
EIN: [XX-XXXXXXX]
(the "Organization")

and

SPONSOR:
[SPONSOR NAME]
[ADDRESS]
[CITY], [STATE] [ZIP CODE]
(the "Sponsor")

RECITALS

WHEREAS, the Organization is a nonprofit corporation exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code;

WHEREAS, the Organization is conducting [EVENT/PROGRAM NAME] (the "Event" or "Program");

WHEREAS, the Sponsor desires to support the Organization and receive acknowledgment and recognition benefits;

NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows:

ARTICLE 1 - SPONSORSHIP

1.1 Sponsorship Level and Payment

Sponsorship Level: [LEVEL NAME] (e.g., Platinum, Gold, Silver, etc.)

Sponsorship Amount: $[AMOUNT]

1.2 Payment Terms

☐ Single Payment: Due upon execution of this Agreement.

☐ Installment Payments:
| Payment | Amount | Due Date |
|---------|--------|----------|
| First Installment | $[AMOUNT] | [DATE] |
| Second Installment | $[AMOUNT] | [DATE] |
| Final Installment | $[AMOUNT] | [DATE] |

1.3 In-Kind Sponsorship

In addition to (or in lieu of) the cash payment, the Sponsor agrees to provide the following in-kind support:

ARTICLE 2 - EVENT/PROGRAM DETAILS

2.1 Event/Program Information

Name: [EVENT/PROGRAM NAME]

Date(s): [DATE(S)]

Location: [VENUE NAME AND ADDRESS]

Expected Attendance: [NUMBER]

Description:
[BRIEF DESCRIPTION OF EVENT/PROGRAM AND ITS PURPOSE]

2.2 Beneficiary

Proceeds from the Event/Program will benefit [ORGANIZATION NAME] and support its mission to [MISSION STATEMENT].

ARTICLE 3 - SPONSORSHIP BENEFITS

3.1 Recognition Benefits

The Sponsor shall receive the following recognition benefits:

[// GUIDANCE (IRS): Sponsorship acknowledgment should focus on recognition rather than advertising. Acknowledgment of a sponsor's name, logo, and product/service line is generally not considered advertising and qualifies as a "qualified sponsorship payment" under IRC Section 513(i). However, endorsements, calls to action, comparative language, price information, or inducements to purchase may create unrelated business taxable income (UBIT).]

Logo and Name Recognition:

☐ Organization website - Sponsor logo with link to Sponsor's website
☐ Event signage - Sponsor logo on [DESCRIBE: banner, podium sign, etc.]
☐ Printed materials - Sponsor logo in [DESCRIBE: program, flyer, invitation]
☐ Press releases - Mention of Sponsor as event supporter
☐ Email communications - Sponsor logo in event-related emails
☐ Social media - Acknowledgment posts ([NUMBER] posts on [PLATFORMS])
☐ Annual report - Sponsor listing at [LEVEL] recognition tier

Verbal Recognition:

☐ Acknowledgment during opening/closing remarks
☐ MC mentions during event ([NUMBER] times)
☐ [OTHER VERBAL RECOGNITION]

Physical Presence:

☐ Display table/booth at event
☐ Banner placement at [LOCATION]
☐ Product display/sampling (describe: ______________________)
☐ [OTHER PHYSICAL PRESENCE]

3.2 Attendance Benefits

The Sponsor shall receive:

☐ [NUMBER] complimentary tickets to the Event
☐ [NUMBER] VIP/reserved seats
☐ [NUMBER] parking passes
☐ Access to VIP reception
☐ Meet and greet with [PERSON/GROUP]
☐ [OTHER ATTENDANCE BENEFITS]

3.3 Naming/Title Sponsorship

☐ Not Applicable

☐ Title/Presenting Sponsor: The Event shall be referred to as "[EVENT NAME] presented by [SPONSOR NAME]" or "[SPONSOR NAME] [EVENT NAME]."

☐ Category Exclusive Sponsorship: The Sponsor shall be the exclusive sponsor in the [CATEGORY] category.

3.4 Marketing Benefits

☐ Sponsor may distribute promotional materials at the Event (subject to Organization approval)
☐ Sponsor may include Organization logo in its own marketing materials (subject to approval)
☐ Sponsor will receive [NUMBER] Organization logo items/merchandise
☐ [OTHER MARKETING BENEFITS]

3.5 Post-Event Recognition

☐ Sponsor logo in thank-you communications
☐ Recognition in post-event media coverage
☐ Inclusion in event photo gallery
☐ Event impact report provided to Sponsor
☐ [OTHER POST-EVENT RECOGNITION]

ARTICLE 4 - SPONSOR OBLIGATIONS

4.1 Materials Submission

The Sponsor shall provide the following materials by [DATE]:

☐ High-resolution logo (vector format preferred)
☐ Approved company description ([NUMBER] words)
☐ Website URL
☐ Social media handles
☐ Contact information for recognition purposes
☐ Promotional materials for distribution (if applicable)
☐ [OTHER MATERIALS]

4.2 Approval of Use

The Sponsor shall respond to requests for approval of materials featuring the Sponsor's name or logo within [NUMBER] business days. Failure to respond shall be deemed approval.

4.3 Compliance

The Sponsor shall ensure that all materials provided comply with applicable laws and do not contain content that is defamatory, obscene, or otherwise objectionable.

ARTICLE 5 - ORGANIZATION OBLIGATIONS

5.1 Delivery of Benefits

The Organization shall use reasonable efforts to provide all sponsorship benefits described in Article 3.

5.2 Quality Standards

All materials featuring the Sponsor's name or logo shall meet reasonable quality standards and accurately represent the Sponsor's brand.

5.3 Editorial Control

The Organization retains editorial control over all promotional materials and event programming.

5.4 Notification

The Organization shall notify the Sponsor promptly of any material changes to the Event/Program that may affect sponsorship benefits.

ARTICLE 6 - INTELLECTUAL PROPERTY

6.1 License from Sponsor

The Sponsor grants the Organization a limited, non-exclusive license to use the Sponsor's name, logo, and trademarks solely for purposes of acknowledging the sponsorship in connection with the Event/Program.

6.2 License from Organization

The Organization grants the Sponsor a limited, non-exclusive license to use the Organization's name and logo solely for purposes of publicizing its support of the Event/Program.

6.3 Approval

Each party shall obtain the other party's prior written approval before using the other party's name, logo, or trademarks in any manner not specifically described in this Agreement.

6.4 No Endorsement

Neither party shall imply that the other party endorses its products or services without prior written consent.

ARTICLE 7 - TAX MATTERS

7.1 Tax Treatment

[// GUIDANCE (IRS): The tax treatment of sponsorship payments depends on the benefits provided. Qualified sponsorship payments (name/logo acknowledgment) are not taxable to the nonprofit. Payments for substantial return benefits (advertising, exclusive provider arrangements, endorsements) may be subject to UBIT.]

☐ Qualified Sponsorship Payment: The sponsorship payment qualifies as a "qualified sponsorship payment" under IRC Section 513(i). The Organization makes no representation regarding the tax deductibility of this payment to the Sponsor.

☐ Mixed Payment: A portion of the sponsorship payment is for [ADVERTISING/GOODS/SERVICES]. The Organization will provide the Sponsor with a written acknowledgment indicating:

• Total payment amount: $[AMOUNT]
• Fair market value of goods/services received: $[AMOUNT]
• Qualified sponsorship portion: $[AMOUNT]

7.2 Tax Advice

The Sponsor is encouraged to consult with its own tax advisor regarding the tax treatment of this sponsorship.

7.3 Acknowledgment

The Organization will provide written acknowledgment of the sponsorship payment as required by IRS regulations.

ARTICLE 8 - EXCLUSIVITY

8.1 Category Exclusivity

☐ No Exclusivity: The Sponsor is not granted any exclusive rights.

☐ Category Exclusive: The Sponsor shall be the exclusive sponsor in the [CATEGORY] category. The Organization shall not accept sponsorships from competitors in this category for the Event/Program.

8.2 Definition of Competitors

For purposes of category exclusivity, competitors are defined as: [DEFINE COMPETITORS OR COMPETING PRODUCTS/SERVICES]

ARTICLE 9 - CANCELLATION AND TERMINATION

9.1 Event Cancellation by Organization

If the Organization cancels the Event/Program:

☐ The Sponsor shall receive a full refund of the sponsorship payment.

☐ The Sponsor shall receive a refund minus expenses already incurred on behalf of the Sponsor (not to exceed [PERCENTAGE]% of the sponsorship amount).

☐ The sponsorship payment shall be applied to a rescheduled event or future event of the Sponsor's choice.

9.2 Event Modification

If the Event/Program is materially modified (e.g., change of date, location, or format), the Organization shall notify the Sponsor, and the Sponsor may:

(a) Accept the modified event; or
(b) Terminate this Agreement and receive a refund per Section 9.1.

9.3 Termination by Sponsor

If the Sponsor terminates this Agreement:

9.4 Termination for Cause

Either party may terminate this Agreement immediately upon written notice if the other party:

(a) Materially breaches this Agreement and fails to cure within [NUMBER] days;
(b) Becomes insolvent or files for bankruptcy;
(c) Engages in conduct that could harm the other party's reputation.

9.5 Force Majeure

Neither party shall be liable for failure to perform due to circumstances beyond its reasonable control, including natural disasters, pandemics, government actions, or other force majeure events.

ARTICLE 10 - REPRESENTATIONS AND WARRANTIES

10.1 Organization Representations

The Organization represents that:

(a) It is a nonprofit organization exempt under Section 501(c)(3);
(b) It has authority to enter into this Agreement;
(c) It owns or has the right to use any intellectual property it provides under this Agreement.

10.2 Sponsor Representations

The Sponsor represents that:

(a) It has authority to enter into this Agreement;
(b) It owns or has the right to license any intellectual property it provides under this Agreement;
(c) Use of its materials will not violate any third-party rights.

ARTICLE 11 - INDEMNIFICATION

11.1 Sponsor Indemnification

The Sponsor shall indemnify and hold harmless the Organization from any claims arising from:

(a) The Sponsor's breach of this Agreement;
(b) The Sponsor's negligence or willful misconduct;
(c) Infringement of third-party intellectual property rights by Sponsor-provided materials.

11.2 Organization Indemnification

The Organization shall indemnify and hold harmless the Sponsor from any claims arising from:

(a) The Organization's breach of this Agreement;
(b) The Organization's negligence or willful misconduct;
(c) The Organization's operation of the Event/Program.

ARTICLE 12 - LIMITATION OF LIABILITY

Except for indemnification obligations, neither party's liability shall exceed the sponsorship amount under this Agreement. Neither party shall be liable for indirect, incidental, consequential, or punitive damages.

ARTICLE 13 - GENERAL PROVISIONS

13.1 Entire Agreement

This Agreement constitutes the entire agreement between the parties.

13.2 Amendment

This Agreement may be amended only by written agreement signed by both parties.

13.3 Assignment

Neither party may assign this Agreement without the other party's prior written consent.

13.4 Governing Law

This Agreement shall be governed by the laws of the State of [STATE].

13.5 Notices

All notices shall be in writing and sent to the addresses above.

13.6 Counterparts

This Agreement may be executed in counterparts.

SIGNATURES

NONPROFIT ORGANIZATION:

[ORGANIZATION NAME]

By: _________________________________________

Printed Name: [NAME]

Title: [TITLE]

Date: ___________________________________

SPONSOR:

[SPONSOR NAME]

By: _________________________________________

Printed Name: [NAME]

Title: [TITLE]

Date: ___________________________________

EXHIBIT A - SPONSORSHIP BENEFITS SUMMARY

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