What is the difference between a corporate gift and corporate sponsorship?

This question confuses both charities and businesses alike. In both situations, the company and charity derive benefits, usually public recognition for the company and advancement of mission for the charity. Both involve a sharing of public reputations and brands. But while the lines between the two may blur, the distinction is important.

A gift, like mother always said, should be made expecting nothing in return. In fact, it’s essential for tax purposes that no goods or services are provided in exchange for a charitable contribution in order for it to qualify as a gift.

When offered a well-crafted sponsorship proposal, the company can assess benefits like access to donors of a particular demographic, public awareness benefits provided by the charity, and a wide array of other possible benefits-to determine if the sponsorship fits their desired marketing and public relations goals.

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