Sponsorship Agreement

Sponsorship agreement – a professional template in Word format

A sponsorship agreement is concluded when a company gives money, goods or services to a club, an association, an event organiser or an individual and receives promotion in return – a logo on shirts and posters, social media posts, visibility at the event itself. That counter-service is the essence of sponsorship and what distinguishes it from a donation, where there is no counter-service.

Sponsorship is not a nominate contract with its own chapter in the legislation. It is concluded on the basis of freedom of contract, with the general rules of the Obligations Act (Zakon o obveznim odnosima) applying to it. That is why a precise description of the counter-services is decisive – both so that the agreement can be performed and so that the sponsorship is accepted as a promotional expense by the Porezna uprava (Croatian Tax Administration).

Key features

• Professional template – 8 articles covering the subject of the sponsorship, the counter-services, deadlines, proof of performance, use of the sponsor’s mark, duration and termination.
• Practical reliability – the counter-services are entered in measurable terms (how many posts, on which networks, where the logo appears), so performance can be checked and proven.
• Easy customisation – options for sponsorship in money, in goods and in services, with a single payment or in instalments.
• Digital availability – the DOCX file with instructions and a tax note arrives by e-mail immediately after purchase.

What the template includes

• Details of the sponsor and the sponsored party, with a variant for an association, a club or an event organiser and a variant for an individual
• The subject of the sponsorship with three options – a sum of money, goods according to a specification in the annex, or services according to a specification
• A list of promotional counter-services – the logo in the positions you specify, publication of the logo and a link on the website, an agreed number of social media posts, visibility at the event
• Deadlines for payment or delivery and the period in which the counter-services are performed
• A separate article on proof of performance – photographs of the displayed logo, links to the posts and a short implementation report within the agreed deadline
• Rules on the use of the sponsor’s name and mark, including the sponsor’s right to state publicly that it is a sponsor and to use photographs from the supported events
• Termination of the agreement, with the sponsor’s right to a refund of the full or a proportionate amount if the counter-services are not performed even within an additional period
• Instructions for completion, with a tax note on promotional expenses, the obligation to issue an invoice and VAT

Who this template is intended for

• Companies and sole traders who support a local club, association or event and want a properly documented promotional expense.
• Sports clubs who offer sponsors a logo on shirts, banners at the ground and posts on social media.
• Event organisers – of festivals, conferences and charity races – who put together sponsorship packages.
• Associations which receive both donations and sponsorships and therefore have to separate two different legal and tax regimes.

Important. If the recipient provides no promotion in return, this is not sponsorship but a donation. In that case use a donation agreement, because different tax rules apply to donations.

Are you giving support without any counter-service? Then what you need is a donation agreement template. We explain the difference between the two arrangements and their tax treatment in detail in our guide on sponsorship and donations.