Department of Education & Training
Sponsorship and Commercial Arrangements FAQs
What is a sponsorship?
A sponsorship is an agreement between two parties, for example a school or college and a company or organisation, where the company/organisation supports an educational activity in return for specific benefits to their business or organisation. It is an arrangement where both parties gain agreed benefits. Sponsorship can be either as cash or in-kind.
What is “in-kind” sponsorship?
This kind of sponsorship is where a sponsor provides services or goods instead of cash. Sometimes this is called “value in kind” or “contra” sponsorship. For example: a local printing company agrees to print copies of a school prospectus or awards program in exchange for an agreed level of recognition.
What is the difference between sponsorship and a donation?
A donation is a one off untied gift that has no requirement for recognition or benefits in return. For example a local bookshop donates books to your library. A sponsorship is a more formal agreement, which is longer term with an exchange of benefits by both parties.
What is the difference between advertising and sponsorship?
Advertising is an arrangement where a company purchases space for an agreed price to advertise their product or service and there are no additional benefits to the advertiser. For example, a company pays a school or college to buy space in a newsletter or magazine.
A sponsorship is an agreement between two parties which provides benefits to both. Advertising may be one benefit offered to a sponsor. The sponsorship agreement needs to identify how often and where this advertisement will appear.
A local business wants to sponsor my school and in return for a financial contribution they want a large advertising sign displayed within the school grounds. Is this appropriate?
This needs to be considered very carefully. Consider the following: How will this arrangement impact on the image of the school? What is the benefit to the school? Is this sponsorship or an advertising arrangement?
See Definition of Sponsorship and Suitability of Organisations - Sponsorship Guidelines.
Can a company logo be placed on a school uniform?
No, logos cannot be placed on the everyday school uniform, including the usual uniform worn for school physical activity or sport.
Some companies may approach or be approached to cover the expenses of a representative player or sporting team. In return the company may request their logo to be placed on a sports uniform.
Logo placement by external parties on sports uniforms needs to be considered carefully – consider the image of the school/team and the logo placement on uniforms.
See- Logo Usage – Sponsorship Guidelines.
Who do I need to consult before entering into a sponsorship agreement?
In all sponsorship arrangements it is important that you consult with your managers and relevant senior departmental staff.
See Responsibilities and Delegations – Sponsorship Guidelines
Do I need a formal sponsorship agreement?
Yes you do. Having a formal agreement ensures that both you and the business or organisation who is your sponsor are clear on what is expected and what is to be provided by both parties in the relationship. An agreement such as the sample agreement (link tbc) is appropriate if the value of the sponsorship is less than $10,000. If the value of the sponsorship is more than $10,000 you will need to discuss the agreement with the department’s Legal Services.
Who can ‘sign off’ on a sponsorship arrangement?
This will depend on the financial delegation of the staff member and the value of the sponsorship. Guidelines – Sponsorship Policy indicates who can approve sponsorship arrangements in line with the Financial Delegations of TAFE and DET.
See Responsibilities and Delegations – Sponsorship Guidelines.
Who does the sponsorship policy apply to?
This policy applies to TAFE NSW colleges and Institutes, regions and schools and state office directorates.
Does this policy apply to requests for sponsorship from TAFEs and schools?
Essentially this policy applies to arrangements where schools and TAFEs are looking for support from companies and organisations for an event or activity. Elements of this policy should be considered where TAFE colleges, schools etc. are invited to become a sponsor. Components such as due diligence, a written agreement and valuing the contribution against the value of the benefits are important considerations.
What are ‘suitable products” to receive in a sponsorship arrangement?
This may vary between schools and TAFE. Products must be appropriate for the school or TAFE community and of standard quality or better. Any guarantees or warranties must lie with the sponsor. Any product supplied as part of a sponsorship needs to be valued at retail price in the agreement.
How do I know the value of a sponsorship benefit in seeking sponsorship?
This can be difficult and will vary between locations, events and sponsors. Always consider your budget for the activity and remember that sponsorship will assist in meeting some of the costs, but may not meet all of them. It is also important that you consider the retail value of anything offered by a potential sponsor. See contacts – Sponsorship Policy and Commercial Arrangements, School-Based Activities Policy, if you have questions.
If sponsorship money is raised for a particular event but not all the money is used on the event, can this be kept in the fund for the same event the next year?
You should plan to expend all sponsorship money obtained for the event or activity. The agreement for the relationship must have a start and end date. This period of time allows for benefits to be delivered.
Schools should also be aware of financial reporting and audit requirements.
See Responsibilities and Delegations – Sponsorship Guidelines.
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Corporate Marketing Directorate 02 9561 8075