When people think of sponsorship, they often picture big brands flashing their logos at major events. But for small businesses, sponsorship can be something much more meaningful.
Why Should You Sponsor a Team, Event, or Cause?
- Because it’s a cause close to your heart, maybe it’s your child’s football team, a local charity you care about, or a community event you’ve always supported.
- Because it gives you that warm fuzzy feeling, knowing you’ve made a difference to something that matters in your area.
- Because it helps build goodwill and stronger community ties, which in the long run builds trust in your brand.
But here’s the thing…
Don’t go into sponsorship purely expecting direct sales or a flood of new customers. Sponsorship isn’t always about immediate return on investment. It’s about relationships, visibility, and values, showing people what your business stands for.
Should Your Small Business Consider Sponsorship?
If it aligns with your values and the community you serve. Sponsorship can help you:
- Support something you believe in
- Raise awareness of your business (even in subtle ways)
- Be seen as a brand that gives back
- Build local recognition in an authentic way
Just make sure you’re receiving some promotional value in return, such as your logo on materials, social media mentions, or event publicity. That way, your sponsorship can also qualify as a tax-deductible business expense.
Make sure it is clear from the very beginning what the agreement is and how you’re measuring things like social media reach and exposure.
Is Sponsorship Tax Deductible?
In the UK, sponsorship can be tax deductible — but only if it qualifies as a business expense rather than a charitable donation.
Tax-Deductible Sponsorship
If your business receives something in return, such as:
- Logo placement or branding
- Mentions on social media
- PR opportunities
- Complimentary tickets or access to events
…then HMRC generally considers it a business expense, meaning it can be deducted from your profits before tax.
Non-Deductible Sponsorship
If the sponsorship is purely a donation — with no commercial benefit or recognition in return — it’s usually treated differently and doesn’t qualify as a tax-deductible expense in the same way.
Businesses That Do Sponsorship Well
If you know Piece of Cake Marketing, you’ll know we’re big Coventry City fans. So, we were buzzing when Monzo came on board last season as the club’s main kit sponsor. But what impressed us the most was how they went beyond just putting their name on the shirt.
Monzo activated their sponsorship with smart, fan-focused perks, like offering discounts at the arena when fans paid with their Monzo card. And when Coventry reached the play-offs, they nailed it with brilliant out-of-home advertising that showed they truly understood the fanbase. It wasn’t just a logo; it was a genuine connection with the fans and community.
Why We Sponsored Team Coventry for the International Children’s Games
At Piece of Cake Marketing, we’re all about backing brilliant young people. So, when we heard about Team Coventry heading to the International Children’s Games in Estonia, we jumped at the chance to support them. As a Coventry-based business, championing our community is what we do best.
This sponsorship is about more than sport it’s about building confidence, forming friendships, embracing different cultures, and proudly representing Coventry on the global stage. We’re not just putting our logo on a shirt — we’re helping to create once-in-a-lifetime memories for young athletes. And that’s something we’re incredibly proud of.
What Should You Look For in a Sponsorship Opportunity?
Here’s a quick checklist to make sure you get real value out of your sponsorship:
- PR opportunities – press coverage, event mentions, or media shoutouts
- Social media content – photo ops, behind-the-scenes access, and regular tags
- The chance to have some fun – be part of something exciting, local, and memorable
Sponsorship isn’t Just a Line on Your Marketing Budget
Sponsorship isn’t just a line on your marketing budget it’s a chance to connect with your community, show what your business stands for, and support something (or someone) that truly matters.
Whether it’s a grassroots sports team, a local event, or a youth programme with global potential, the real return on sponsorship often goes far beyond the balance sheet.
Done right, it’s good for your brand, good for your business, and good for the people around you.
We hope you’ve enjoyed our thoughts on sponsorship. If you like to gain access to all the latest news and updates from the marketing world, make sure you’re on our email list. We send emails twice a month.