A sponsorship is the act of supporting an organization, activity, event or individual financially or with resources. This is done in return for some form of recognition, such as advertising or other promotional benefits.
A sponsorship is considered a commercial agreement and therefore attracts VAT. So, the amount of the sponsorship will appear on your club’s account net of VAT. For example, £100 will appear as £83.33. (Note: any expenditure on your account that includes VAT will also appear net of VAT).
Where nothing is expected in return for the funds or resources provided, it is considered a donation, not a sponsorship.
Donations do not attract VAT and are received by your club or society in full.
It is important that nothing is received by the donor, other than a personal thank-you letter and this must not be on-line or publicly visible.
Donations should be made to:
Harper Adams University Students’ Union Charity Account.
Lloyds Bank plc
Sort code 30-96-02
Account number 15688160
Reference “the name of your club/society” (to enable us to identify and allocate the funds)
The value of a financial sponsorship should exceed the cost of the promotional benefits.
For example, if you choose to add the logo of a sponsor to an item of club clothing, you should ensure that the value of the sponsorship exceeds the cost of embroidery.
Where the value of the sponsorship is equal to the cost of embroidery, arguably it is not a sponsorship, but advertising. Furthermore, where the cost exceeds the value, you are funding the advertising costs of another organisation.
/pageassets/getinvolved/onlineforms/sponsorshipform/Sponsorship-blank-2.docx