In many cases, businesses, schools, or nonprofit organizations hosting events will not be able to cover the cost of the event from their own funds. Therefore, they might seek event sponsorship, by approaching other area businesses to see if they are interested in sponsoring the event with a donation of a certain amount of money. In return, the area business might get to put up signs advertising their sponsorship at the event, or give out free promotional items such as coffee mugs or pens with their logo on it. In this way, event sponsorship can be beneficial for both the sponsor, and the company who is being sponsored.
There is virtually no limit to the type of event in which event sponsorship may be taking place. Corporate events and conferences are common, as well as events at colleges and universities. Public entertainment events, such as concerts or shows, also frequently seek corporate sponsors. This is because any event where hundreds or even thousands of people are gathering is a prime marketing opportunity, and corporations often recognize the inherent benefit in sponsoring events and having their name associated with something the attendees already enjoy. Fundraisers also often request corporate sponsors to ensure that all money gained from the actual fundraiser goes to the cause, and not to marketing or other overhead expenses.
Event sponsorship can take a number of different forms. A smaller donation may only earn the sponsor a small amount of signage around the venue or location. Larger donations may get the donor the opportunity to give out certain pieces of "swag"; popular options include tote bags, pens, calendars, or mugs, for example. This is essentially an opportunity for "free" advertising, even though the company did spend some money to be represented at the event. Larger corporate sponsorships may even feature product placement at the event for attendees to try certain products or even buy them; this is common at technology conferences, for example.
Businesses or nonprofits approaching companies for event sponsorship should be sure to have certain facts and figures ready, such as the size of the venue and the amount of people expected to be in attendance. This can help the company to determine whether or not they want to sponsor the event, and to what extent. Companies who have a positive experience and a good return on investment, will be more likely to sponsor the same cause in the future.