How can I make sure my sponsors come through?

Question

I'm currently seeking businesses to sponsor prizes at my event. I'm looking for a sponsor to provide a grand prize for instance. If I advertise this company and market around this grand prize and they back out I'm screwed.

How can I make sure they come through on their end of the bargain?

Is this something that I would have to make a contract for?

Also do I have to give my sponsors paperwork so they can write off the expense?

Answer 1

Contract is a must, actually the sponsor will probably ask for one to protect their brand image, money and reputation. Consult a lawyer, have him draft a sponsroship agreement, that covers everything from event date, money, sponosrship requirments, tickets etc. Make sure there is a penalty clause incase they do not give you the money on time. The sponsor will aslo require documenting where their branding will go, how big, its production quality etc.

The sponsor will only need the contract along with a payment receipt in order to include them in their tax documents.