Corporate Sponsorship

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DEFINITION

A form marketing in which a corporation pays for all of some of the costs associated with a project or program in exchange for recognition. Corporations may have their logos and brand names displayed alongside of the organization undertaking the project or program, with specific mention that the corporation has provided funding. Corporate sponsorships are commonly associated with nonprofit groups, who generally would not be able to fund operations and activities without outside financial assistance. It is not the same as philanthropy.



INVESTOPEDIA EXPLAINS

Corporate sponsorship is common for programs at museums and festivals, but is also seen in the commercial sphere. For example, athletic facilities may bear the name of a company and the name of a sporting competition may be proceeded by the name of a company. The level of recognition depends on the goals of the sponsor, as some companies may want to further a particular project or program without drawing public attention.


Because corporate sponsorships may be expensive, investors have been wary of the benefits of the publicity in down economies.




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