Sponsorships and partnerships both require a written agreement.
Sponsorships and partnerships are two common business practices. Although the terms are often mistakenly interchanged, they are entirely different arrangements that can even coexist. A business that is a partnership can take part in sponsorship for an event. While a partnership and a sponsorship do share a few other similarities, they are two different concepts.
Sponsorship
A sponsorship is a form of advertising where companies pay to be associated with events or causes. Corporate sponsorship, also called event marketing or cause marketing, is a new and rapidly growing form of advertising. Unlike many types of advertising, sponsorships not only help businesses by improving visibility, they benefit communities by funding worthwhile events and causes.
Partnership
A partnership is a business agreement in which the the obligations and contributions of each partner are explicitly laid out in a written contract. There are three types of partnerships in the modern business world. In a general partnership, each partner shares equal rights, obligations and authority within the business. In a limited partnership, each partner's liability can be limited to the amount of their original investment, although at least one must participate as a general partner. In a limited liability partnership (LLP), participants are protected from personal liability for the business while retaining the same tax benefits as a general partnership.
Differences
Sponsorship is a form of advertising, while a partnership is a business arrangement in which each party is involved, whether actively or simply through an initial investment, in running the business. In a sponsorship, two or more companies or organizations are involved, while a partnership involves just one company. A sponsorship usually involves one or more nonprofit organizations and a partnership is just one business, usually for-profit.
Similarities
Both sponsorships and partnerships are business arrangements in which a written agreement is customary. Partnerships are generally a long-term arrangement. While a sponsorship is often specific to one event, it may also be an ongoing agreement between a business and nonprofit organization.
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