The Distinction Between Sponsorship, Patronage & Charity

In marketing, the distinction between sponsorship, patronage and charity is somewhat blurred. This confusion appears to be amplified when applied to a sport marketing context as each concept is often used interchangeably. This inability to distinguish the three concepts can also create problems for sport organisations. The organisations may not be gaining the intended benefit from sponsorship, patronage or charity as the wrong type of agreement was entered into. This post will define each term and provide you with some examples to further explain the difference between sponsorship, patronage and charity. 

SPONSORSHIP
Sponsorship involves a 'reciprocal relationship' between the sponsor and the entity being sponsored. This means that both parties to the transaction obtain a benefit, usually of commercial significance. Resources, services or money are commonly exchanged to achieve this goal. The San Francisco 49ers, a NFL team, recently signed two sponsorship agreements in relation to their new stadium. One agreement was made with Citrix Systems (who will become the 'mobile workspace technology partner') and another with United Airlines (who will become the 'official airline partner'). Citrix will obtain the benefit of having a boardroom and business centre bearing their name at Levi's Stadium. Additionally, United Airlines will get the naming rights to the largest corporate suite space at the new stadium. In contrast, the 49ers will receive a healthy sum of money from the sale of this sponsorship inventory.  

PATRONAGE

On the other hand, patronage involves the act of supporting a particular group of people or organisation that has been specifically selected by the patron. The intention is to promote the work of such groups and ensure they have the resources to continue with their work. Historically, the wealthy were considered to be 'patrons of the arts' if they offered their support to painters, musicians, sculptors and other artists. In sport, the concept can also be applied. The Kirra Surfriders Club consider patrons to be "individuals who have provided long term support over an extended period of time but who may not have ever been a member of the club. The role of Club Patron is part promoter of the club and its members and part supporter of the club's activities and ongoing success."

CHARITY
Lastly, charity is the act of helping those in need by providing aid through money and/or volunteering. In 2013, the AFL had an arrangement with the Australian Red Cross where this organisation would be the official charity partner of the preseason competition. This partnership was described as the following: "As well as match day fundraising, the partnership will also provide a national platform to increase awareness of the work of the Red Cross through the AFL and AFL stakeholder promotional vehicles including online, radio, print, PR and match day promotions."