Sponsors’ level of acknowledgment should be in proportion to their investment. A low value sponsor should receive a less prominent acknowledgment than a sponsor of greater value.
Appropriate sponsorship maintains or enhances public confidence in the Department of Education and Training and the Queensland Government. For example, sponsor benefits and sponsored programs should be compatible with the ethos of the department.
Refers to ensuring sponsorship activity is with organisations whose public image and products or services are compatible with the ethos of the department.
Prior to incoming or outgoing departmental sponsorship contracts being signed a short business case must first be approved by the relevant authority (see responsibilities). A business case outlines the risks, costs and benefits of proposed sponsorships. Refer to the Example Business Case for further information.
Commercial Billboard advertising
Billboard advertising refers to any signage advertising at a state school that is greater than four square metres.
Money provided by department or government for day-to-day operation of programs and delivery of budgeted services. Sponsorship funds received should be used to value-add to this existing funding, but not replace it.
Donation or bequest
A gift, donation or a bequest is different from a sponsorship. A gift imposes no obligations on the recipient and offers little or no return to donor. A bequest is a form of donation, to be utilised for a specific purpose as directed by the benefactor.
Gifts to a non-profit body are not consideration for a supply (GST does not apply).
According the DET Standard of Practice, ‘Donations may be accepted on behalf of the department for departmental use, but must be registered in accordance with the requirements of Part 2, of the Financial and Performance Management Standard 2009’ (DET employees only).
The amount of expenditure approval allocated to specific positions.
Activities that aim to raise funds for the school which are not based on advertising or sponsorship. The same key principles outlined in this procedure also apply to fundraising. (See Sponsorship and Fundraising Checklist for Schools and Parents and Citizens’ Associations)
A ‘grant’ is a generic term applied to funding or other incentives provided to individuals or bodies (including community groups, statutory bodies or commercial enterprises) that exhibit some, or all, of the following characteristics:
- a transfer to a recipient which may be in return for compliance with certain terms and conditions
- a transfer which may not directly give approximately equal value in return to the Government (that is, there is a non-exchange transaction or subsidisation), and
- a recipient may have been selected on merit against a set of program-specific criteria.
Source: Queensland Treasury, Financial Accountability Handbook, Volume 6, Grant Management
A form of sponsorship where a sponsor, in addition to sponsorship benefits, has negotiated to have their name added as a prefix to the sponsored activity.
Naming rights in this context does not apply to naming of school buildings and facilities after a person, or persons, who have given meritorious service to school or public education.
Personal information means information or an opinion, whether true or not, about an individual whose identity is apparent, or can reasonably be ascertained, from the information or opinion. This includes, but is not limited to name, telephone number of home address of students, parents or staff.
Endorsement involves acting on behalf of a company to sell, recommend or promote a company, their products or services, or any other activity that could create a public perception that a school, other departmental unit or staff member is promoting or recommending an external organisation.
Examples of product endorsement include a letter from a Principal to parents endorsing, recommending or promoting a company’s products or services; or state school teachers providing favorable comment on an educational product on a public website, where they identify themselves as departmental employees.
Where departmental units (including schools) offer advertising opportunities via newsletters or other communication devices, they must ensure that all advertising arrangements are transparent, available to all acceptable organisations and do not suggest or imply endorsement.
Promotion or incentive schemes
Arrangements conducted by a company that are intended for commercial or other benefits, and which involve and reward students, teachers, schools or school systems for participating in such schemes.
Provision of goods in-kind
Instead of cash, some sponsors may prefer to provide goods or services, otherwise known as in-kind items. This may include event tickets, travel, press, radio and television coverage, as well as food, beverages and other consumer goods. This practice is acceptable provided:
- parties agree on a fair and justifiable value (current market value) for items
- value of items is included in total value of sponsorship agreement
- benefits are for the organisation and not individuals organising sponsorship or sponsored initiative
- processes are properly documented and managed
- accountability is maintained
- where goods are foods or drinks provided to school students, their supply is guided by Smart Choices, Healthy Food and Drink Supply Strategy for Queensland Schools).
The department does not accept goods that are not of a satisfactory standard, simply because they are ‘free’ or ‘offered’. This does not constitute value for money.
Signage advertising includes posters, placards, notices, signs and advertising structures to which such advertising is affixed to, painted on, or supported by.
Results in significant economic, social and environmental impacts for the host community and usually involves a high level of involvement from the government or community in which the event is staged. They will be events that generally have whole-of-government and/or state-wide implications. A significant event will meet one or more of the following criteria:
- A significant contribution of additional government funding is required
- There will be attendance of a significant number of international Heads of State, national or international Government Ministers or senior government officials
- There is a requirement to coordinate a number of government agencies, including essential services
- Event is considered to have a high risk for community and/or government.
The association of the sponsor’s name, logo, products or services with the sponsored organisation’s service, product or activity. This is in return for negotiated and specific benefits such as cash or in-kind support or promotional opportunities. It involves a negotiated exchange and should result in tangible, material and mutual compensation for the principal parties to the arrangement. Sponsorship can take the form of cash and/or in-kind support.
Sponsorship does not include an offer by a company to provide the school with monetary support after a predetermined dollar amount has been spent with the company or a quantity of products have been purchased. This is a purchasing arrangement and should be treated as such.
In-kind or ‘contra’ sponsorship is the provision or receipt of goods or services to support or enhance an initiative at a reduced rate or free of charge. These arrangements are also liable for GST.
Incoming sponsorship is when a department or agency receives sponsorship monies from another party for an initiative and/or event.
Outgoing sponsorship is when a department provides sponsorship monies to another party for an initiative and/or event.
Sponsorship does not include monies paid through a bidding process to attract events.
Sponsorship does not include donations, philanthropic gestures, bequests or gifts, which impose no obligations on the receiver and offer little or no return to the donor. A sponsor expects to receive a reciprocal benefit beyond a modest acknowledgment.
Sponsorship does not include purchasing or selling goods or services for value, including advertising space, editorial comment or advertorials.
Sponsorship is not provided to individuals. The provision of funding to enable staff to attend training courses, personal development opportunities or other such activities is also not considered sponsorship.
In this context, sponsorship does not include students canvassing for funds (‘being sponsored’) for school or other activities.
There may be circumstances where GST does not apply to the sponsorship:
- The organisation or recipient of the cash or in-kind contribution is not GST registered; or
- The recipient is a not for profit organisation and has elected to treat the fund raising event as input taxed (no GST is charged on supplies and GST cannot be claimed on purchases/expenses).
For further information on taxation issues please contact the taxation team.
Means a legally-binding written contract between the department and an external organisation detailing the sponsorship relationships (including full terms and conditions) between the two entities.