A sponsorship is a contribution made to support the organization or to support a more specific activity like a program or special event. Sponsors can be companies or individual constituents. Sponsorships typically include some benefits to the sponsor in exchange for the contribution. Benefits can include things like recognition, such as promoting the relationship with advertising, signage, or other types of communication. Benefits could also include things like tickets or a table for an event, t-shirts, or plaques.
As an example, a local marketing agency sponsors a luncheon event for an association of real estate agents. The association could recognize the sponsorship in the newsletter to its constituents and by posting the marketing agency's logo on the association's website. The business would also receive 4 tickets to the event, signage at the event, and an ad in the program.