Sponsorship Explanations Part 1

It is becoming more and more difficult for many companies to assert themselves in the big market. Many companies have to break new ground in order to present themselves to their target group and to strengthen their own brand or company. One effective way to do this is through sponsorship .

What does sponsorship actually mean?

Sponsorship or generally also referred to as sponsoring is generally the donation of financial resources or material resources to individuals, but also to groups or associations and institutions. Sponsoring also includes the provision of know-how or services. Sponsoring can be done by both companies and private individuals. But this does not happen completely for free, because sponsoring always includes a service and a consideration.

Why is sponsorship so important for companies?

For a company, sponsoring represents an important part of public relations . A company uses sponsoring to conduct marketing measures. And these measures not only serve as advertising media, but also as a communication tool. If a company acts as a sponsor and in this context provides support through financial means, through services or through the provision of items, then on the other hand, something in return is expected from the sponsored. This sounds like a community of convenience, but it is not entirely true.

First and foremost, the company that sponsors is primarily concerned with funding. However, this results in the inestimable advantage of a positive image for the company.

What is the difference between sponsorship and donation?

According to GRADPHYSICS, sponsoring and donation are often mentioned in the same breath. Especially during speeches you can often hear that the sponsor is thanked for his support. But is it really a sponsorship or a donation? A difference that you have to be aware of, because otherwise quite a bit of trouble with the tax office. It is therefore important to know the differences between these two topics very well. But where exactly are these differences?

Sponsorship Donate
In the case of sponsorship, something in return is usually expected. In the case of a donor, the donor does not ask for anything in return.
All points relating to sponsorship must be contractually stipulated. Donations can also be claimed for tax purposes if they go to a charitable area. If this is not the case, the recipient of the donation may not issue a donation receipt.
Funds for sponsoring count as business expenses and can be deducted for tax accordingly. Donations are always voluntary and free of charge. The donor is not obliged to perform.

The most common types of sponsorship

A few years ago, sponsorship was mainly known from the field of sports. But this has changed fundamentally in the meantime. Sponsoring can be found as a special form of marketing in almost every area within society. There are completely new opportunities for potential sponsors, especially through collaboration with influencers , social media or YouTube. Sponsoring is divided into the following types:

Sports sponsorship

The sports sponsorship is still the most common and economically is the most significant variant. In this variant, a sponsor of a single athlete or a sports club, either in kind or cash resources. The sponsor’s goal is to increase the level of awareness of his company. This can be achieved very easily through the broad impact of sport.

There is also sport sponsorship for certain individual sporting events, which are also very suitable as an advertising platform. Just think of soccer world championships or European championships. The most common use of sports sponsorship is jersey advertising or perimeter advertising . Another possibility are contracts for equipment suppliers or licenses. Sports sponsorship includes many features of classic sales advertising. This fact makes it possible to classify sports sponsoring in the easiest way from a tax point of view.

A company that acts as a sponsor in sport pursues various goals :

  • Increase in awareness
  • Image transfer
  • Development of new target groups
  • Maintaining contacts in the B2B area
  • Customer loyalty in the B2C area
  • Assumption of responsibility in the social area
  • Increase in sales / turnover

Sports sponsorship can be divided into three dimensions : type of sport, performance level and organizational unit.


  • Soccer
  • Handball
  • ice Hockey
  • To go biking
  • Etc.

Performance level

  • Top and competitive sport
  • Popular sport
  • Promotion of young talent
  • Senior and disabled sports

Organizational unit

  • Individual athletes
  • Teams
  • Associations
  • societies
  • Sporting events and sporting events

The cultural sponsorship

Cultural sponsoring is understood to be the commitment of companies in the cultural field . Cultural sponsorship can relate to the support of artists, but also to the promotion of cultural groups or projects. It is hoped that this will have positive effects on both marketing and corporate communication.

With cultural sponsorship, the sponsor pursues the following goals :

  • Maintaining contacts
  • A sense of responsibility in social terms
  • Maintaining contacts in the B2B area
  • Image transfer

Even with this type of sponsorship there are several areas and forms of expression.

     Sponsorship 1