Sage-Tips

What is the difference between a cash sponsorship and an in kind sponsorship?

A cash sponsorship is when the sponsor pays a fee in the form of cash, whereas an in-kind sponsor provides a value in the form of goods and services.

What kind of sponsorships are most valuable?

1. Financial Event Sponsorship. Financial, or sometimes referred to as cash sponsors, continue to be the leading type of event sponsorship. With this one, a sponsor offers money to an event organizer in exchange for promotions or other benefits outlined in their sponsorship agreement.

How is the value of sponsorship determined?

5 Steps for Unlocking the Market Value of Your Sponsorship Offering

1. List your sponsorship assets.
2. Gather your competitors’ prices.
3. Estimate your competitors’ attendance.
4. Calculate the cost-per-attendee.
5. Write down the value proposition of each asset.
6. Determine the value of your assets.

How do you price a sponsorship?

How to Effectively Price Event Sponsorship Packages

1. Determine Your Audience Size.
2. Outline Your Sponsorship Packages.
3. Look Up the Market Rate.
4. Consider the Actual Value of the Package.
5. Be Willing to Negotiate.
6. Adjust Your Price Points Over Time.
7. Over to You.

What is a value in kind sponsorship?

In-kind sponsorship (or value-in-kind sponsorship, as is its full name) is a type of sponsorship where the sponsor agrees to provide goods or services (value in kind) instead of cash as part of a sponsorship agreement.

What means kind value?

Value in Kind means sponsorship received in the form of goods and/or services rather than money.

What is value in kind sponsorship?

In-kind sponsorship (or value-in-kind sponsorship, as is its full name) is a type of sponsorship where the sponsor agrees to provide goods or services (value in kind) instead of cash as part of a sponsorship agreement. In-kind sponsorship is most certainly not charity.

Why is sponsorship valuation important?

As a brand or sponsor, valuations yield trust in the rights-holder and trust in the accuracy of the offering’s value. Valuations also give sponsors confidence in what they are buying. Proper valuations can help support deal-makers getting approval from senior leadership when entering into a partnership.

What is the value of a sponsorship plan to a certain events?

Sponsorships are the most effective and mutually beneficial way to provide events with a powerful return on investment and positive culture. At their best, sponsorships raise the brand value of both parties and reinforce their heritage and visions for the future.

What is the average price for a sponsorship?

When searching for local sponsorships, we recommend establishing an “average cost” budget, meaning that the average cost of all sponsorships will hit, say $700. This opens you up to potential $1200 sponsorships, as well as smaller, $200 little league donations, to balance out the bigger donations.

What is the difference between cash sponsorship and in-kind sponsorship?

A cash sponsorship is when the sponsor pays a fee in the form of cash, whereas an in-kind sponsor provides a value in the form of goods and services. In-kind sponsorship may also be referred to as “value in-kind sponsorship” or by its acronym, “VIK”. In-kind sponsorships can add a ton of value and be super helpful to the bottom-line.

Is in-kind sponsorship right for your race?

In-kind sponsorship can add a ton of value to a race and often completely transform its profitability. What’s more, it is usually easier to deliver than cash sponsorship and can open your event to a much larger pool of potential sponsors.

What are budget relieving in-kind sponsorships?

Budget relieving in-kind sponsorships help rightsholders (you!) eliminate cost of goods and services. This enables a sponsor to participate when they may otherwise not have been able to due to budget constraints. Meanwhile it helps rightsholders save on operational expenses.

What is the catch with cash sponsorships?

If you want a cash sponsor, you need to buy the food, wine, signs etc. yourself. But it isn’t really a catch because when you use this approach you add the hard costs of product to your valuation, which is passed on to the sponsor anyway!