Intent to Sponsor

DCERVENKA

DCERVENKA

Well-known member
We solicited a sponsor which allocates their budgets based on a fiscal year. They want to be involved with our project and requested that we hold the sponsor spot for them, but they will not be able to give us the money until June 1.

Has anyone else come across a situation like this and how did you secure the sponsors? I don't want to get in a situation where we release promotional material with their logo/name only to find out later that they will not pay up..

Also would a "LETTER OF INTENT" be what I'm looking for in this situation?
 
Letter of Intent. Usually you need a LOI from one or two big sponsors to get all of the other sponsors hyped into participating. It wouldn't be out of line to ask for a percentage to start.

Corporate sponsors don't feel comfortable donating or sponsoring unless they know the project will come out the way it's presented to them. Large corporations have a budget for this sort of thing, so getting the money usually isn't a problem.

If they're a tiny company, I would feel very hesitant about relying on their funding alone, and would find other sources (using their committment as leverage -- hence the LOI.)

The downside is that politics within the company may change, or they will change their mind about sponsoring. The upside is that you easily get many times the cost of the project with multiple sponsors.

About 50% of our projects are paid for this way.
 
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