Sponsorship

Policy

This policy provides guidance to school staff and school councils on assessing and managing possible sponsorship opportunities, and the required procedures for entering into a sponsorship agreement.

This policy is consistent with the Victorian Government sponsorship policy and guidelines.

Summary

• Schools must only engage in sponsorship activities if the potential activity meets one or more of the sponsorship criteria set out below. Schools can receive sponsorship (incoming) or provide sponsorship (outgoing).
• Schools must follow the process set out in the Sponsorship Procedure (on the Guidance tab) when considering a sponsorship opportunity, including use of the Sponsorship checklist (DOCX).
• School staff and school council members assessing a sponsorship request must act in a way that is ethical, ensuring the opportunity is competitive for all potential sponsors that want to participate.
• School staff and school council members must not enter into a sponsorship arrangement with an organisation or individual that would harm the school or department’s reputation.
• Schools must maintain their own sponsorship registers for incoming and outgoing sponsorship, and keep their own records of any agreements or contracts.
• When a school receives sponsorship:
  • for $25,000 or less, they must seek approval from their school council and finalise the agreement with the appropriate engagement letter template provided on the Resources tab
  • above $25,000 they must seek approval from their regional director and Executive Director, Communications.
• Schools approached with requests to advertise state-wide or country-wide promotions (for example, from supermarkets) to their school community must refer the request to the Communications Division.

Details

This policy and guidance align with the Victorian Government Sponsorship Policy and apply to all sponsorship activities undertaken by Victorian government schools.

All Victorian government schools are required to follow this policy and must not have their own local sponsorship policy.

In this policy, the term ‘schools’ refers to all school-based staff and school councils. This includes the principal in their capacity as executive officer of a school council when they are implementing sponsorship decisions for a school council, and it also applies to school council members.

Sponsorship is considered a function undertaken by a school council under Part 2.3 of the Education and Training Reform Act 2006 (Vic).

Compliance with this policy is mandatory under the Finance Manual for Victorian Government Schools (refer to Section 9.8 Locally raised funds – Sponsorship).

Different reporting and approval procedures apply for Department of Education corporate staff (refer to Sponsorship Policy (Corporate) (staff login required)).

What is sponsorship?

Sponsorship is typically where an individual, group or organisation (the sponsor) supports another organisation’s activities (such as an event or upgraded facilities) through the provision of money, goods or services in exchange for promoting the sponsor and the sponsor’s contribution (such as through logo placement, naming rights or public acknowledgement of the support received from the sponsor).

Sponsorship can provide a mutually beneficial and purposeful relationship between organisations or businesses and Victorian government schools, the department and agencies, contributing to strong school and corporate communities.

Incoming sponsorship

Incoming sponsorship is where an external organisation provides financial or in-kind support for a school initiative, event or program.

Incoming sponsorship may:

• reduce the costs to the school of performing a particular activity or allow for enhanced program delivery or expansion
• provide funding for publications, conferences or other special activities that promote a particular program or initiative
• provide the school with an opportunity to develop better working relationships with the wider community.

Examples of incoming sponsorship include:

• a local bakery supporting a school’s fete by providing free or reduced-price baked goods for the school to sell at a food stall, in exchange for their logo being placed on the school’s advertising for the fete with a sentence thanking the bakery for their contribution
• a business paying for new soccer goals in exchange for signage on the school oval and their logo on the students’ soccer tournament jerseys
• a community group offering labour and supplies to paint a mural in exchange for placement of a plaque with the business name and logo, and acknowledgement of their contribution on the school’s newsletter and social media channels.

Sponsorship can include partnership arrangements, except where the arrangement is governed by the Partnerships Victoria requirements or otherwise involves the development or management of infrastructure.

Refer to ‘Identifying incoming sponsorship’ in the Guidance tab for further support in deciding whether an offer of money, goods or services must be treated as an incoming sponsorship.

Outgoing sponsorship

Outgoing sponsorship is where a school provides financial or in-kind support to an external organisation for their initiative, event or program.

Outgoing sponsorship may:

• increase the school’s exposure to its community
• enhance the school’s image
• increase awareness of the school.

Examples of outgoing sponsorship include:

• a school sponsoring a community fair in exchange for a stall to help them promote their school programs to the community, the school logo on event advertising, and social media posts acknowledging the school’s sponsorship on the event Facebook page
• students approaching their school to sponsor their non-school-based robotics team to participate in an interstate competition
• the department sponsoring a conference to provide professional development opportunities for school staff and specialists.

Activities that are not sponsorship

Sponsorship does not include:

• donations (refer to Finance Manual – Section 9.7 Locally raised funds – Donations)
• philanthropic efforts (refer to Philanthropic Partnerships)
• the sale of advertising space, editorial comment, or advertorials (refer to Advertising)
• grants or discretionary funding provided to or provided by external individuals or organisations for a specific purpose
• bequests that impose no obligations on the recipient and offer little or no rights or benefits to the provider.

Engaging businesses as vendors at school fetes is covered by the department’s Fundraising Activities (including fetes) policy. The sponsorship policy only applies where businesses seek to include attendance or promotion at a fete as one of the benefits required in exchange for sponsorship of the school.

For expanded definitions for this policy, refer to the Definitions section below.

Refer to the Guidance tab for a decision tree.

Sponsorship criteria

Schools must only engage in sponsorship activity that meets one or more of the following criteria:

• promotes and improves educational outcomes
• supports school goals and objectives and the department’s strategic plan
• increases effectiveness of departmental strategic programs
• engages or builds relationships with key stakeholders
• communicates key messages to specific audiences within the community
• supports Victoria’s climate action and net-zero emissions targets
• contributes to advancement of Victorian whole-of-government priorities.

Schools do not have to consider all requests to engage in sponsorship arrangements.

If you decide to consider a sponsorship request, the information in this policy and guidance will help you assess whether the request is appropriate.

Sponsorship principles

When considering a sponsorship request or offer, schools must assess it against the following sponsorship principles set by the Victorian Government sponsorship policy and guidelines.

1. Ensuring probity

Inappropriate activity

Schools must not engage in sponsorship that is inappropriate, either through association or activity.

The following activities or organisations must not be considered for sponsorship:

• activities aimed at delivering or replacing core services to schools delivered by third parties such as, for example, cleaning or IT
• activities or sponsorship partners whose values, products, purposes or objectives are inconsistent with the department’s policies, values, priorities or objectives
• political parties and members of parliament
• tobacco companies, gaming venues, companies involved in the sale or promotion of alcohol, or involved in the sale or promotion of firearms
• companies that encourage unhealthy food choices by young people
• religious organisations or religious activities
• unregistered charities and not-for-profit organisations, including those not registered with the Australian Charities and Not-for-profits Commission (ACNC)
• School Banking Programs provided by Authorised Deposit-taking Institutions. Refer to the Financial Literacy Policy for further information.
• organisations or companies that are financially unsound or unstable
• agencies with inspectorial or regulatory powers over the department
• any activity or organisation seeking for the department or schools to directly endorse or promote its products or services
• any activity in breach of the Code of Conduct for Victorian Public Sector Employees.

Commercial organisations can be considered for incoming sponsorships if the organisation is not associated with an inappropriate activity listed above.

For outgoing sponsorships, schools must not sponsor any commercial organisations (excluding media organisations).

Assessing appropriate sponsorship

Schools can take a common-sense approach to considering if companies and businesses activities are appropriate for sponsorship.

The primary consideration must be whether an association with a particular company, organisation and brand would affect the school’s reputation and conflict with the school’s and department’s values, objectives and priorities.

For example, even though the local supermarket may promote some unhealthy food choices, it is not the primary purpose of the supermarket, and an association may be appropriate. A sponsorship with a fast-food outlet would not be appropriate.

Sponsorship with a licensed restaurant may be appropriate, whereas sponsorship with a liquor store would not be appropriate.

Similarly, organisations that may have religious affiliations, but primarily focus on wellbeing and community services rather than religious activities, may be appropriate.

Most arrangements with organisations affiliated with religious organisations are covered by the Philanthropic Partnerships policy rather than the sponsorship policy and support programs with a primary focus on wellbeing, learning and development rather than religious activities.

Specific sponsorship exclusions

Sponsor branding on uniforms

Sponsor logos cannot be placed on the everyday school uniform, including the usual uniform worn for school physical activity or sport. Uniforms contribute to the identity of schools and their public image. Government schools are not commercial entities, and it is inappropriate to have commercial logos on uniforms. Taglines and written references to sponsors are also not appropriate to include on the everyday school uniform.

Competition uniforms such as sporting jerseys or team uniforms for a specific event can include sponsor logos if a sponsorship agreement is in place.

For information on school uniforms and dress codes, refer to the Student Dress Code policy.

Naming rights for school buildings and spaces

School and Campus Naming includes requirements and process for naming new and existing Victorian government schools, educational services, campuses, school buildings and school spaces.

The policy does not allow schools to offer naming rights for school buildings or school space to sponsors.

Personal information

Schools must not enter into a sponsorship agreement where the sponsor receives the names, addresses, personal data or contact details of department or school employees, school council members, or students and their families, as a benefit of the sponsorship.

Open and effective competition

If schools receive an offer for incoming sponsorship or a request for outgoing sponsorship, it is recommended they check whether there are any similar organisations, businesses or individuals in their community that may also want to propose or request sponsorship.

This is strongly recommended to ensure open and effective competition for sponsorships and for the school to get the greatest value for incoming sponsorships.

For example:

• Incoming sponsorship: A real estate agency offers sponsorship for the school in exchange for advertising on the school website. The school should consider whether other real estate agencies in the neighbourhood town or suburb should be offered the chance to submit a sponsorship proposal.
• Outgoing sponsorship: A community sporting team or individual student is seeking sponsors to help cover the cost of an interstate competition and approaches the school for sponsorship. The school should consider whether all community sporting teams and students will have the same opportunity to request sponsorship.

Ethical behaviour and fair dealing

School participation in sponsorship (including those with sponsor advertising as a benefit) should not place undue pressure on employees, parents, students or school communities to purchase particular goods or services, subscribe to particular beliefs or attitudes, or undertake certain activities or actions.

All school staff and school council members involved in making decisions about or managing sponsorships must behave ethically and fairly and:

• declare and avoid conflicts of interest (refer to Conflict of Interest)
• refuse gifts, invitations to events and functions, or other favours if offered as part of sponsorship negotiations and register all refused offers valued at $50 or more in the department’s Gifts, Benefits and Hospitality Register (refer to Gifts, Benefits and Hospitality)
• maintain confidentiality with respect to commercial-in-confidence, intellectual property issues, matters under negotiation and any other confidential information
• maintain high standards of transparency and accountability
• must not provide names or addresses of departmental, school or agency employees or school council members or students and their families to an organisation or business as a benefit of sponsorship
• comply with the Code of Conduct for Victorian Public Sector Employees.

2. Achieving efficiency and effectiveness

Value for money

Value for money is not necessarily about the highest or lowest dollar amount, but rather the best possible outcome that can be achieved using the available resources. For example, a sponsorship proposal may demonstrate good value for money because it helps you reach a key audience or because it offers an extremely low-risk activity or association.

If a sponsor provides services or goods instead of money (‘in-kind’ or ‘contra’ sponsorship) schools should seek to determine a dollar value to the in-kind benefit to help them evaluate the sponsorship offer and ensure appropriate approvals.

For example, a local printing company agrees to print copies of a school prospectus or awards program in exchange for an agreed level of recognition. The cost of the printing would be the value of the in-kind sponsorship.

It may not be efficient if 2 or more schools are providing or seeking sponsorship to the same organisation. To avoid duplication, it is best practice to ask sponsors who their current sponsors are (or who else they are sponsoring).

Sponsorship benefits and inclusions

If an organisation is offering a package of benefits in exchange for sponsorship, there may be an opportunity for the school to negotiate what is on offer to increase the effectiveness of the sponsorship.

The level of acknowledgement or benefit provided to sponsors should be consistent with the level of sponsorship. Acknowledgment of sponsorship must be in a form that positively enhances education outcomes, and the public image of the department and school must be considered at all times.

Incoming sponsorships

The school’s acknowledgement of a sponsor should not be seen to endorse the sponsor, their services or products.

Endorsement of the sponsor, their services or products could risk perceptions of favouritism, future favours and conflicts of interest.

Appropriate acknowledgement can include:.

• placement of a plaque or notice in a format that has the prior approval of the sponsor for the duration of a sponsored activity or for an agreed period of time
• public display at functions of temporary signage acknowledging the sponsorship
• acknowledgement of the sponsorship in newsletters (for example, advertisement) or speeches
• a letter of appreciation to the sponsor
• inclusion of a by-line, forward or advertisement from the sponsor in a school’s prospectus, magazine or other publication (any advertisement, paid or unpaid, must comply with the department’s Advertising policy)
• attendance by the sponsor at school functions and an opportunity to make an address or present an award.

Outgoing sponsorships

A typical package of benefits for outgoing sponsorship can include:

• public acknowledgements
• logo placement and signage
• speaking engagements
• social media posts
• advertising.

Other benefits can include:

• naming rights (for events and initiatives only)
• placement and promotion of web links
• media and publicity
• opportunities to network
• placement of articles in targeted publications
• competitions.

Naming rights

Naming rights are when a sponsor has negotiated to have their name added as a prefix to the sponsored activity.

Careful consideration must be given to the potential financial, legal, marketing and branding implications of agreeing to grant naming rights.

The approval of the Minister for Education must be obtained for any sponsorship agreement that gives an external organisation the naming rights for a school event or initiative.

The School and Campus Naming policy includes requirements and process for naming new and existing Victorian government schools, educational services, campuses, school buildings and school spaces. The policy does not allow schools to offer naming rights for school buildings or school space to sponsors.

Sponsorship arrangements relating to naming rights must have explicit end dates.

Contact the Communications Division for advice if your sponsorship proposal includes naming rights.

State-wide sponsorship of schools

There are a number of state-wide or country-wide corporate sponsorships that affect local schools. For example, regular promotions run by major supermarket chains, banks and book clubs.

Businesses can benefit from schools encouraging their communities to shop there to earn points or credits towards donations, and this carries a risk as schools are incentivised to promote the schemes to their communities.

Schools being approached with requests to advertise these promotions to their school community must refer the request to the Communications Division by email at sponsorship@education.vic.gov.au

In some instances, the department may enter into an agreement with an entity to apply to all schools.

3. Implementing effective risk management

Schools must consider the benefits and risks of sponsorship when deciding whether to proceed with a sponsorship.

Risks

The risks of sponsorship can include:

• perceptions of improper conduct or that probity has not been maintained
• perceptions of a conflict of interest and any risks that may pose
• promotion through schools can lead to the perception that a school supports or endorses a particular business
• perceptions of bias, favouritism or that an impartial decision has not been made
• the potential for reputational damage to the school or department by associating with an inappropriate sponsor or one of poor repute, particularly if a company is seeking to rebuild its reputation
• undertaking an activity on the promise of incoming sponsorship which then does not materialise
• undervaluing the true commercial value of the sponsorship benefits the school is giving the sponsor
• financial risks of involvement with a sponsorship partner which may include risk of financial insolvency or lack of adequate insurance
• perceptions that a future favour is expected to be given to the sponsor
• privacy and information security risks if the sponsor has access to school databases or personal information.

Managing risk

The Assessing sponsorship checklist (DOCX) provides a useful set of criteria to help assess any risks associated with a potential sponsorship opportunity.

Reputational risk

Schools must contact the department’s Communications Division for advice when considering sponsorship agreements that may have potential for reputational damage.

Schools should be mindful that many businesses seek sponsorships to directly promote their products and services to a captive parent market. Promotion of a business that is sponsoring a school can enhance trust in the business, and lead to the perception that the school supports or endorses the business. Schools should carefully consider the nature of the product and services and the risks of promoting these directly to the parent community.

Incentive offers to parents should also be carefully considered due to the perception of placing undue pressure on families and the risk to the school if something goes wrong.

Schools should clearly advise that their sponsorship agreements include the option to vet and review sponsorship-related materials, including advertising content, to ensure they are appropriate and in line with the school’s values and priorities.

Entering a sponsorship agreement with a business connected to one parent or carer may lead to sponsorship approaches from other parents and carers, or perceptions in the school community of favourable treatment. To address this, schools should consider advertising sponsorship opportunities to the whole school community, using a set of clear criteria to assess responses.

Financial risk

To address financial risks of sponsorship, schools must:

• follow the sponsorship policy and procedures to ensure they are not in breach of government accounting requirements
• ascertain the true commercial value of the sponsorship for accurate reporting purposes (this can be calculated by estimating the market rate value for the benefit being provided)
• ensure that potential sponsors pose no financial risk to the department, school or agency as a result of the sponsorship arrangement.

Schools must conduct basic financial viability checks of potential sponsors.

This can be done by:

1. checking ASIC Registers to confirm the business is:
   1. registered and active via the ASIC ABN Lookup
   2. not listed under ASIC’s Published Notices for liquidation or administration
2. for not-for-profit organisations, check the Australian Charities and Not-for-profits Commission Charities Register to
   ensure the entity is registered and in good standing with the Commission
3. requesting a brief statement or letter of financial solvency from the sponsor (signed by a senior executive) declaring the business or organisation is financially solvent and not under any form of insolvency or financial distress
4. looking for publicly available financial information on their website or via business directories (this step is optional)
5. search the internet for news on any recent issues with the sponsor, such as financial collapses or negative media coverage.

For lower-value sponsorships, school councils can choose to address financial risk by requesting this can simply be you should request a declaration from the potential sponsor that confirms they have sufficient financial resources to deliver the goods or services described in the sponsorship agreement and that they are not subject to any current or impending legal action that could impact on their capacity to deliver their agreed sponsorship.

Schools can contact schools.procurement@education.vic.gov.au for advice on checking the financial viability of sponsors.

Insurance

Schools must check the sponsor has appropriate insurance cover for the sponsorship they are offering.

It is recommended that the amount of insurance the sponsor has aligns with the amount set in the Contractors – Insurance and Contract Arrangements policy.

All sponsors require public liability insurance, particularly if the sponsor is present at a school event (a fete for example). If the sponsorship is provided in the form of service or advice, additional professional indemnity insurance is required.

This information can be requested from the sponsor when negotiating the terms of the sponsorship. On request, the sponsor must provide the school council with evidence of this coverage.

For advice on this, contact insurance.enquiries@education.vic.gov.au

Child safety risk

Schools must consider child safety requirements when entering into sponsorships and throughout the agreement.

For example:

• if photos, videos or recordings of students are proposed to be shared as part of acknowledging a sponsor, the appropriate parental consent must be received in line with the Photographing, Filming and Recording Students policy. In addition, it is recommended that schools ensure students featured in images are not identified by name in the school or sponsor’s communications about the sponsorship
• ensuring sponsors that visit schools or interact with students and families are effectively screened, managed and supervised in line with the Visitors in Schools policy
• any child safety risks associated with the sponsorship must be documented in the school’s Child Safety Risk Register.

Public safety risk

If the sponsorship includes advertising on school grounds, such as a billboard or other signage, schools must adhere to the safety requirements in the Advertising policy.

4. Maintaining transparency and accountability

The procedure and requirements sections on the Guidance tab list the steps that schools must take when entering into a sponsorship agreement, including approval and documentation requirements.

Approvals and reporting

Below is a summary of the approvals required at various sponsorship levels.

Incoming sponsorship

• If the value of incoming sponsorship is equal to or less than $25,000, it must be approved by the school council and recorded on the school’s sponsorship register.
• If the value of incoming sponsorship is more than $25,000, it must be approved by the school’s regional director and the Executive Director, Communications Division and be recorded on the school register and central department register by the Communications Division. In the case of multi-year sponsorship agreements, the $25,000 threshold applies to the total value of the sponsorship agreement, not the per-annum cost.
• If the sponsorship agreement includes naming rights for any school event or initiative, it must be approved by the school’s regional director, the Executive Director, Communications Division and the Minister for Education. It must also be recorded on the school register and central department register by the Communications Division.

Outgoing sponsorship

• If the value of outgoing sponsorship is equal to or less than $25,000, it needs to align with school financial delegation approval limits and be recorded on the school register.
• If the value of outgoing sponsorship exceeds $25,000, it needs to align with school financial delegation approval limits and be recorded on the school’s register and the central department register by the Communications Division. In the case of multi-year sponsorship agreements, the $25,000 threshold for registering the sponsorship with the department applies to the total value of the sponsorship agreement, not the per-annum cost.

The Communications Division will help organise approvals required for sponsorships over $25,000. Follow the procedure on the guidance tab to gather the information required for approval and contact sponsorship@education.vic.gov.au for assistance.

Finalising contracts and financials

Once the necessary approvals and agreements are all in place, a confirmation letter and contract are required from the school.

Templates for sponsorship engagement letters and contracts are available on the Resources tab and must be provided to the sponsoring or sponsored organisation with a copy held on file.

Financial sponsorships must be treated like any other outgoing financial arrangement and established school financial management policies and processes must be followed.

Schools must record incoming sponsorship funds in CASES21 as 74580 – Other Locally Raised Funds.

In addition to formal processes, it is worth keeping in regular contact with your sponsorship partner to assess and maintain the sponsorship relationship.

Tax implications

If a school receives sponsorship in a form of cash payment, the received funds are subject to GST. The following examples illustrate the types of sponsorships where a GST liability would arise.

• A company gives money for a scholarship and the name of the company is included on all written material about the scholarship – the benefit to the sponsor is a form of advertising.
• An organisation buys rights or benefits from the school, including naming rights for an event or program. The rights or benefits typically relate to the sponsor’s reputation, management or communication objectives and are delivered through associating its name, products, services or activities with the school.

A donation or grant in the form of a payment, in cash or in-kind, is not subject to GST as long as it is made unconditionally. This means:

• no benefits or rights flow as a result of the payment
• there is no requirement to provide any goods or services in return
• there is no requirement to use the donation for a particular purpose.

If the donor receives more than ‘mere recognition’, the donation is a sponsorship and a GST liability will arise.

Unspent funds

School council must plan to expend all sponsorship money obtained for the event or activity. The agreement for the relationship must have a start and end date. This period allows for benefits to be delivered.

A school can specify in the agreement with the sponsor what should be done with any excess funds. This could include returning the funds to the sponsor.

Evaluation

School sponsorships valued greater than $25,000 (incoming and outgoing) must be evaluated when concluded and their outcomes documented within 3 months of sponsorship activities concluding.

All evaluation and reporting forms are available on the Resources tab.

For more information, contact the Communications Division at sponsorship@education.vic.gov.au

Evaluations are used to update guidance and are used to inform future sponsorship decisions.

Please note, some details of your evaluation may be shared with others in the department who may be seeking a sponsorship with the same organisation.

Useful tools and references

The Guidance and Resources tabs have resources to assist schools to apply this policy and assess sponsorships.

Definitions and examples

Sponsorship
Sponsorship is typically where an organisation (the sponsor) supports another organisation’s activities (such as an event) through the provision of money, goods or services in exchange for the promotion of the sponsor’s goods, services or activities (such as through logo placement, naming rights or public acknowledgement of the support received from the sponsor).

There are 2 types of sponsorship:

• Incoming sponsorship is where an external organisation provides financial or in-kind support for a school initiative, event or program.
• Outgoing sponsorship is where a school provides financial or in-kind support to an external organisation for their initiative, event or program.

Sponsorship can include partnership arrangements, except where the arrangement is governed by the Partnerships Victoria requirements or otherwise involves the development or management of infrastructure.

Advertising
Advertising is typically an arrangement where an organisation or individual (the advertiser) purchases public space from another organisation (the publisher) for an agreed price to advertise their product or service and there are no additional benefits to the publisher. The only benefit to the publisher is usually the payment received from the advertiser for advertising the product or service (noting that payment can be waived or in kind).

Advertising may be in the form of print, radio, television, outdoor, online and other digital platforms.

For example, a company pays a school to buy space in a newsletter or magazine or a billboard to advertise their services to the school community, or the school pays a company to advertise the school to prospective students and families.

Benefits
What a school receives or provides for its sponsorship investment and any additional or potential value.

Bequests
The transfer of personal property – such as cash, securities or other assets – upon the owner's death, as specified in their will.

Donations
A one-off untied gift that has no requirement for benefits in return. If the donor receives more than 'mere recognition’ (that is, advertising), the donation must be treated as a sponsorship. Examples of donations include:

• The school is given $2,000 by a former student’s accounting firm with no requirement to provide any goods or services in return. The firm is mentioned on an honour board as having donated the money.
• The school is given timber by the local hardware store to rebuild a stage at the local school. No goods and services are requested in return and no payment is requested for the timber.
• The school raises money for a particular charity (for example, Red Nose Day or the Royal Children’s Hospital) and wishes to donate this money. The school should retain sufficient documentation (for example, a charity flyer or charity acknowledgement) to support the payment.

Grants
Discretionary funding provided to external individuals or organisations for a specified purpose directed at achieving goals and objectives consistent with government policy, where the grant recipient is selected on merit against a set of criteria.

In-kind support or bartering
Where a sponsor provides services or goods instead of cash. Sometimes this is called ‘value in kind’ or ‘contra’ sponsorship.

Naming rights
A benefit of sponsorship where a sponsor has negotiated to have their name added as a prefix to the sponsored event or activity.

Philanthropy
Charitable giving to human causes on a large scale. Acts of philanthropy include donating money to a charity, volunteering at a local shelter or raising money to donate to cancer research.

Related policies

• Advertising
• Conflict of Interest
• Contractors – Insurance and Contract Arrangements
• Finance Manual – Financial Management for Schools (see Section 9.8 Locally raised funds – Sponsorship)
• Gifts, Benefits and Hospitality
• Philanthropic Partnerships
• Victorian Government Sponsorship Policy: Relevant Legislation and Policies

Relevant legislation

• Code of Conduct for Victorian Public Sector Employees
• Education and Training Reform Act 2006 (Vic) – Part 2.3
• Ministerial Order 1280 (DOCX)
• Privacy and Data Protection Act 2014 (Vic)

Guidance

Identifying incoming sponsorship offers

Schools can use this decision tree to determine whether an offer of money, goods or services from an external business or organisation should be treated as an incoming sponsorship.

1. Did your school apply to an organisation for a grant for a specific project or activity?
   • Yes: Contact schools.finance.support@education.vic.gov.au for support.
   • No: Continue to next question.
2. Does the offer of money, goods or services involve the development or management of infrastructure such as school grounds or buildings?
   • Yes: Review the School-funded Capital Projects policy and contact vsba.school.funded@education.vic.gov.au if you need advice.
   • No: Continue to next question.
3. Is the offer of money, goods or services for the use of an individual or staff use?
   • Yes: Refer to the Gifts Benefits and Hospitality policy.
   • No: Continue to next question.
4. Do you need to pay any amount or sign up to a service to receive the offer?
   • Yes: Refer to the Procurement – Schools policy and contact schools.procurement@education.vic.gov.au for support if needed.
   • No: Continue to next question.
5. Is the organisation or business offering money solely in exchange for publishing their name and/or logo on a school site or in a school publication with no other benefits to either party?
   • Yes: Refer to the Advertising policy.
   • No: Continue to next question.
6. Will the organisation or business receive any benefit from the school in exchange for the money goods or services? (Examples of benefits include placement of a plaque or signage at a school, acknowledgement of the organisation in speeches or school communications, organisation representative attendance at school functions or a speaking or award presentation opportunity.)
   • No: This may be a donation.
     • If goods are being donated, refer to the OHS Purchasing policy.
     • If money is being offered, refer to Financial Management for Schools: Section 9 Funding Sources and contact schools.finance.support@education.vic.gov.au for support.
     • If services are being offered, refer to the Procurement – Schools policy and contact schools.procurement@education.vic.gov.au for support.
   • Yes: Continue to next question.
7. Will this benefit be more than basic recognition and thanks for the money, goods or services? (Basic recognition could be acknowledgement in a school communication.)
   • No: this may be a donation.
     • If goods are being donated, refer to the OHS Purchasing policy.
     • If money is being offered, refer to Financial Management for Schools: Section 9 Funding Sources and contact schools.finance.support@education.vic.gov.au for support.
     • If services are being offered, refer to the Procurement – Schools policy and contact schools.procurement@education.vic.gov.au for support.
   • Yes: Review the Sponsorship policy to determine if the offer is appropriate for a sponsorship agreement and contact sponsorship@education.vic.gov.au

If the offer doesn’t fit with any of these categories, contact schools.finance.support@education.vic.gov.au and sponsorship@education.vic.gov.au for support.

Seeking incoming sponsorship for your school

Identify your sponsorship approach

Use a business case template to determine your approach to sponsorship, including:

• your rationale for seeking sponsorship, sponsorship goals and how these will further education outcomes
• which potential sponsors you will approach to submit a sponsorship proposal and what selection criteria you will use to decide which proposals to accept
• the sponsorship benefits your school can offer in line with the sponsorship policy
• any potential risks and mitigation strategies.

Advertise the sponsorship opportunity

To ensure open and effective competition in sponsorship opportunities it is strongly recommended that the school advertises the opportunity for businesses organisations and individuals to submit a sponsorship proposal or seek sponsorship from the school.

Advertising the sponsorship opportunity can involve promoting the opportunity in the school’s communication channels such as newsletters, social media, approaching potential sponsors directly, or in community information channels like noticeboards and social media.

Where an unsolicited proposal is made by a sponsor, consider whether this opportunity could be advertised to ensure fair competition. Where the decision is made not to publicly advertise, the school council must document the rationale for this decision.

If a competitive sponsorship process is undertaken and advertised, the school must use selection criteria to evaluate the sponsorship offers or requests to ensure a fair and transparent process.

For example, selection criteria could include:

• the total value of the sponsorship to the school including the value of any in-kind benefits received
• the benefit of building a relationship with a sponsoring organisation, such as building community connections
• the potential sponsor’s alignment with the school’s values.

Assessing sponsorship offers

Step 1. Review the proposed or requested sponsorship

Assess the proposed sponsorship against this policy. The sponsorship checklist must be used to assess the offer and identify any possible risks associated with the sponsorship activity.

Calculate the benefit of the sponsorship versus the cost, to ensure the sponsorship offers value for money or resources and helps achieve the department’s strategic objectives.

For questions or support contact schools.procurement@education.vic.gov.au

To decline a sponsorship offer or request at any stage, use these templates to send either an Incoming sponsorship rejection letter or Outgoing sponsorship rejection letter.

Templates for this step:

• Assessing incoming sponsorship checklist schools (DOCX)
• Incoming sponsorship rejection letter (DOCX)
• Outgoing sponsorship rejection letter (DOCX)

Step 2. Prepare documentation

If the offer meets the criteria and is appropriate, request a detailed sponsorship proposal from the proposed sponsor (incoming sponsorships) or the business, individual or organisation seeking sponsorship (outgoing sponsorship). The proposal should have clear objectives, key performance criteria and an evaluation plan.

If the sponsorship is over $25,000 (incoming and outgoing), the school must complete a sponsorship business case template.

The business case needs to clearly define and scope the problem, explain the rationale for undertaking the project and identify and quantify related benefits and costs. It should be supported by data wherever possible.

If the business case reveals the sponsorship offers good value, seek school council approval to proceed with a sponsorship agreement.

The sponsorship proposal and business case (if the sponsorship is over $25,000) must be provided to the school council to inform their decision on the sponsorship.

Templates for this step:

• Sponsorship business case template schools (DOCX)

Step 3: Seek approval

School council approval

Provide the school council with the completed sponsorship assessment checklist, sponsorship proposal and business case to inform their decision on whether to accept the sponsorship offer or request.

Department approvals – incoming sponsorship

If an incoming sponsorship is equal to or less than $25,000 and does not include naming rights, it does not require approval from the department, only the school council.

If an incoming sponsorship includes naming rights for a school event or initiative, it must be approved by:

• the school council
• the regional director
• the Executive Director of the Communications Division
• the Minister for Education.

Incoming sponsorships of more than $25,000 must be approved by:

• the school council
• the school’s regional director
• the Executive Director of the Communications Division.

If these additional approvals are required, the school principal must contact the Communications Division by email at sponsorship@education.vic.gov.au and provide the completed sponsorship assessment checklist, sponsorship proposal, business case (if applicable) and the school council’s approval.

The Communications Division will check the proposed sponsorship adheres to the policy and coordinate department and minister approval.
Templates for this step:

• Assessing incoming sponsorship checklist schools (DOCX)
• Sponsorship business case template schools (DOCX)

Step 4. Formalise the sponsorship

Once all approvals are granted, sponsorships less than or equal to $25,000 can be offered or accepted using an engagement letter to formalise the sponsorship.

Sponsorships greater than $25,000 must also use a sponsorship agreement to formalise the sponsorship.

Having a formal sponsorship agreement ensures clear expectations and deliverables for both parties in the agreement, and reduces the risk of additional benefits being requested, challenges in managing expectations and inconsistency with other sponsors.

The sponsorship agreement needs to:

• set out terms of the sponsorship
• specify that the department does not endorse the organisation or its products and that the arrangement must not be promoted or publicised as such
• provide termination or conflict resolution procedures
• include reporting requirements.

When the letter and template are complete, arrange for signatures from the external organisation followed by the president of the school council. Approval needs to align with school financial delegation approval limits.

You can seek advice from the Communications Division and the Legal Division if needed when completing the engagement letter or sponsorship agreement template.

Templates for this step:

• Sponsorship incoming engagement letter (DOCX)
• School council sponsorship agreement (incoming) (DOCX)
• Sponsorship outgoing engagement letter (DOCX)
• School council sponsorship agreement (outgoing) (DOCX)

Step 5. Register the sponsorship

All school sponsorship activities must be approved by the school council and registered by the school on their own internal register.

Sponsorships greater than $25,000 must also be reported to the Communications Division, who will register the sponsorship on the central department sponsorship register.

To register your sponsorship, complete a Sponsorship declaration form (DOCX) (staff login required) and have it signed by the school principal on behalf of the school council.

Once completed and approved by the school council, email sponsorship@education.vic.gov.au within 14 days of a sponsorship being offered and include the:

• declaration form
• sponsorship engagement letter or sponsorship agreement
• any relevant material used for decision making on the sponsorship (such as a business case or sponsorship prospectus).

The Communications Division will review the agreement to ensure it aligns with the policy and record the details on the department’s sponsorship register.

Templates for this step:

• Sponsorship declaration form (DOCX)
• Sponsorship register template (DOCX)

Step 6. Finalise payments and monitor the agreement

Monitor the sponsorship to ensure all the agreed elements are delivered.

Incoming funds must be recorded in CASES21 as 74580.

Outgoing sponsorships (where a school sponsors an external organisation) should follow normal procurement threshold guidelines and approval of the agreement should align with school financial delegation approval limits.

For any other questions or support contact schools.procurement@education.vic.gov.au

Step 7. Evaluate the sponsorship

Sponsorships valued greater than $25,000 must be evaluated at the completion.

Provide the sponsorship partner with an evaluation form and complete a post sponsorship evaluation report for the school. Templates to complete the evaluation can be found in the Resources tab.

Sponsorship case studies

Case study 1. Donation versus sponsorship

A local bakery has offered to donate cakes for the school’s annual morning tea to welcome new families. The value of the cakes is estimated to be around $500. The bakery has not asked for any mention or benefit for providing these cakes; however, the school has decided to mention the bakery in the school’s newsletter.

Although the school has acknowledged the bakery in the school’s newsletter, this is a donation because the bakery did not request any right or benefit by providing the cakes to the school. Unlike a sponsorship, there is no requirement for the school to take any further action than accepting the cakes. The school has decided to mention the bakery as a token of goodwill. As this is a donation, the sponsorship policy does not apply.

Some businesses can have commercial motivations in offering donations and the school’s acknowledgement can present the business in a positive light and influence how school community members make decisions and spend money. The school should ensure their acknowledgement does not imply endorsement of the bakery or encourage the school community to shop there.

Case study 2. Unsolicited sponsorship approach

A local real estate agent offers to pay for and install a billboard at the school’s front gate to display signage about upcoming school events. The real estate agent has offered to pay for the billboard and the printing for 3 signs on the billboard each school year for 3 years in exchange for their logo appearing at the bottom of the billboard.

When the sponsorship offer is taken to school council, a council member notes there are 5 other real estate agents in the community that may be interested in the opportunity to sponsor a school billboard, and raises integrity concerns about accepting the offer without an open and competitive process.

The school advertises the opportunity to all the real estate businesses by email, to ensure transparency, accountability and fair competition. They also assess the value of the sponsorship by researching what the cost of signage and printing would be, seeking advice from other schools with similar signage and seeking input from school council members or parents who work in the real estate industry and do not have any conflicts of interest.

Once a sponsorship agreement has been approved, the school ensures the billboard and printed signage meets the safety and appropriate activity requirements in the Advertising policy.

Case study 3. Balancing school and business benefits

The Parents’ Association is organising a trivia night fundraiser and is seeking sponsorships and donations from local businesses. Georgia’s Toy Shop contacts the school and offers to be a main sponsor with store products as prizes and funding a photo booth that has ‘Georgia’s Toy Shop’ branding and signage. Georgia’s Toy Shop has estimated the value of these prizes and the photo booth at $1,000. In return, Georgia, the proprietor, is asking for:

• the business logo to appear on all the promotional flyers advertising the trivia night
• a half-page advertisement for the shop in schools’ newsletters for 4 terms
• permission to give out flyers at the fundraiser, containing an in-store offer.

While the benefits being sought are in line with the sponsorship policy, the school considers whether the value of the sponsorship is proportionate to the benefits the sponsor will receive. These could be directly negotiated with the sponsor if there is not an appropriate match.

In this case, the school council does not view the sponsorship as suitable for the school and declines the offer because:

• the benefits to the sponsor outweigh the benefits to the school
• the flyers and advertisement may place undue pressure on parents to spend money at the store
• an unbalanced sponsorship arrangement with the business may set a precedent for other future sponsorship arrangements.

Case study 4. Ineffective risk management and parent incentives

A parent who works as a mortgage broker seeks to sponsor their child’s school in exchange for benefits including 3 advertisements in the school newsletter. The last advertisement of the year includes an offer of $200 off the cost of the mortgage broker’s service fee and $200 for the school for any parents who takes out a mortgage with the broker. A parent who takes up the offer later complains about the service provided by the broker and criticises the school for being associated with the business, and for showing favouritism to the parent by promoting their business.

The school council reviews the process used to approve the sponsorship and the advertisement and finds:

• the sponsorship and final advertisement lead to the perception that the school supported or endorsed the mortgage broker
• the school council did not consider the risk of promoting the mortgage broker’s service to their school community
• the offer of a dual incentive for parents and the school placed undue pressure on parents to use the service and exposed the school to risk when something went wrong.

The school council ensures that future sponsorship agreements do not include incentives for families or the school, and include the option to vet and review sponsorship-related materials, including advertising content, to ensure they are appropriate and in line with the school’s values and priorities.

To ensure open and effective competition and address perception of favourable treatment, the school council decides to advertise for sponsorships to the whole school community in future.

Case study 5. Sponsor requests benefits in conflict with the policy

A school is planning to renovate an existing school building to create a technology hub. The school has been raising money for this project for the past few years.

A technology business is willing to offer the final $50,000 to complete the project in exchange for several rights including:

• the learning hub needs to be named after the business
• the business will appear on the school’s website as a platinum sponsor with a link to their web page
• a plaque on the learning hub acknowledging the business
• signs promoting the business on the school fence
• the opportunity for the company to pitch their education technology to the school leadership
• acknowledgement as a sponsor on the school’s Facebook page.

The school council checks the sponsorship policy and finds some of the requested benefits need to be negotiated with the business. The school council determine that:

• they cannot agree to the naming rights request as it is not allowed under the School and Campus Naming policy
• signs promoting the business on the school fence don’t meet the requirements of the Advertising policy because they are not for the purposes of educational, recreational, sporting or cultural activities for students, the local community or young people
• the school council determine that allowing the business to pitch their products to the school leadership would conflict with the school’s procurement processes.

The school would like to accept the offer because it will further educational programs for students and supplement their existing fundraising. They negotiate with the technology business and offer an alternative package of benefits which include:

• the plaque on the learning hub
• acknowledgement of the sponsorship on the school’s website, social media and newsletter
• an opportunity for a representative from the business to speak at the opening of the learning hub
• a space at the school’s annual careers day for engineers to speak to students about future technology careers.

Resources

Documents and templates to assist schools in establishing and maintaining effective sponsorship arrangements

• Sponsorship register template (DOCX) – a template register for school use
• Assessing incoming sponsorship checklist schools (DOCX) – key questions to ensure schools have sufficient information to assess the proposed sponsorship against the policy
• Sponsorship incoming engagement letter (DOCX) – engagement letter for use when the incoming sponsorship does not exceed $25,000
• Sponsorship outgoing engagement letter (DOCX) – engagement letter for use where a school may offer sponsorship, not exceeding $25,000, to an external party
• Sponsorship incoming rejection letter (DOCX) – rejection letter for use when the incoming sponsorship offer does not exceed $25,000
• Sponsorship outgoing rejection letter (DOCX) – rejection letter for use where a school was asked to provide sponsorship, not exceeding $25,000, to an external party

Additional resources relating to outgoing sponsorships and incoming sponsorships above $25,000

• School council sponsorship agreement (incoming) (DOCX) – licence agreement for use when the value of the incoming sponsorship is greater than $25,000
• School council sponsorship agreement (outgoing) (DOCX) – licence agreement for use when the value of the outgoing sponsorship is greater than $25,000
• Sponsorship business case template schools (DOCX) – For sponsorships over $25,000 the business case template must be completed
• Sponsorship declaration form (DOCX) – sponsorships with a value greater than $25,000 are to be reported to the Communications Division by filling out the form and emailing it to: sponsorship@education.vic.gov.au
• Post-sponsorship evaluation report (DOCX) – to be completed by the school at the conclusion of a sponsorship arrangement where the value was greater than $25,000
• Incoming sponsorship evaluation form (DOCX) – to be sent to the sponsor at the conclusion of a sponsorship arrangement where the value was greater than $25,000