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Tips for Acknowledging Sponsorship Gifts

Plus, a free sample letter to get you started!

This giving season is much different from other years. For one thing, there's a good chance you'll be holding a virtual fundraising event instead of an in-person one. Nevertheless, event sponsorships might be an important funding source for your nonprofit organization.

As you prepare to solicit sponsorships, set some time aside to prepare an acknowledgment template specifically for your sponsors. Sponsorships are different from a typical charitable gift, so there are some key elements to keep in mind.

In this blog post, we'll share four easy tips to help you create an effective template for acknowledging event sponsorships. We'll also provide you with a great sample for you to download and customize to meet your nonprofit event's needs.

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Tip 1: Be Careful About Tax Language

Sponsorships are generally not tax-deductible because the donor is receiving something in exchange for their sponsorship. Often, they are receiving signage at an event, a logo displayed on your website, and so on. Your organization's acknowledgment letter to sponsors should not state that their gift is tax-deductible unless that is the case.

Tip 2: Express Gratitude

Even though a sponsorship is not a tax-deductible contribution, it's still appropriate and important for you to set a tone of appreciation in the letter. Make sure the sponsor knows how much your organization values their support and how, specifically, it will further your organization in its mission. If possible, add a brief handwritten note to emphasize your appreciation.

Tip 3: Confirm Sponsorship Details

Use the acknowledgment letter as an opportunity to confirm the sponsorship level and what that entails. For example, you can thank the company for being a Bronze sponsor and list the specific benefits of that sponsorship level.

Tip 4: Provide Contact Information for a Point Person at Your Organization

In case the company needs to ask questions or clarify details of their sponsorship benefits, make it easy for them by telling them exactly who to contact and how they should do so. You may have provided that information when you solicited a sponsorship, but it's a good idea to provide it again.

Download This Free-to-Use Example to Get Started

Here's an example that you can use as a starting point as you create your own sponsorship acknowledgment template. Click the image to download it as a Word document.

example sponsor acknowledgment letter that illustrates the points made in this blog post

The language in a sponsorship letter differs from the language used for a charitable contribution. But the goal is the same: to express appreciation and provide accurate details of the financial support. Creating an acknowledgment template specifically for sponsors will help your organization manage and cultivate these important supporters.

Using a donor management system like Little Green Light, available at a discount to nonprofits through TechSoup, makes creating personalized acknowledgments through the use of templates a breeze. Learn more about how Little Green Light can help you manage your nonprofit's fundraising efforts by joining a free demo.


About the Author

Virginia works on the customer support team at Little Green Light. She has over 15 years of fundraising experience and continues to be active in development as she fundraises for Alamo Rescue Friends, a nonprofit dog rescue organization she founded in 2010. Virginia loves sharing practical ways for fundraisers to be more efficient and effective in their work, no matter how much experience they have or how big or small their organization is.

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