What In-Kind Sponsorship Is
In-kind sponsorship means a sponsor pays in goods or services rather than money. Instead of writing a check for a package, the sponsor supplies something the event needs, and the organizer recognizes them as a sponsor in return. For the organizer, it lowers costs. For the sponsor, it can be cheaper than a cash sponsorship, because what they give costs them less than its market price, and it often puts their product directly in attendees' hands.
- Products: food, drinks, giveaways, prizes or equipment
- Services: printing, AV, photography, transport, staffing, design or event Wi-Fi
- Space: a venue, a hospitality suite, hotel rooms or a parking lot
- Media: advertising, airtime, newsletter placements or social promotion
- Expertise: speakers, judges, trainers or professional services such as legal or accounting help
The terms are used loosely. An in-kind donation usually means a gift to a nonprofit with little or nothing in return, while an in-kind sponsorship comes with a package of recognition and benefits, much like a cash sponsorship. The difference can matter for how each side accounts for it, which is covered further down.
In-Kind Sponsorship Examples by Event Type
The best in-kind sponsors are companies whose product is part of the attendee experience, so the contribution doubles as a demonstration.
| Event | In-kind sponsor | What they provide |
|---|---|---|
| Trade show or expo | Decorator, printer or furniture supplier | Lounge furniture, aisle signs or printed show guides |
| Conference | AV company, coffee roaster or tech company | Stage equipment, the coffee service or event Wi-Fi |
| Gala or fundraiser | Florist, winery, hotel or restaurant | Centerpieces, wine for dinner, auction prizes or the venue itself |
| Festival | Brewery, beverage brand or local radio station | Drinks for a sampling area, water stations or on-air promotion |
| Farmers or community market | Local bank, hardware store or newspaper | Tents, signage, a market map in the paper or volunteer T-shirts |
| Association annual meeting | Member companies and consultants | Speakers, a sponsored breakfast or meeting space |
| Health and wellness expo | Gyms, studios and health brands | Instructors for live classes, product samples or screening equipment |
| User or customer conference | Technology partners | Hands-on demo stations, software licenses as prizes or sponsored training |
For event-specific planning, see our guides to how to plan a gala, how to start a farmers market and running a health and wellness expo, all of which lean heavily on in-kind partners.
When In-Kind Sponsorship Helps and When It Costs You
In-kind support is not free. It costs staff time to arrange, it can tie you to a supplier you would not have chosen, and it replaces a cost rather than adding revenue. Weigh it the way you would a cash deal.
- It works well when it replaces a cost already in your budget, at a quality you would have bought anyway
- It works well when the sponsor's product improves the attendee experience, such as better coffee or a photo booth
- It works well for new or small events that can't yet attract cash sponsors
- It works well when the sponsor would not have had cash budget but does have product or services to spare
- It causes problems when it replaces cash a sponsor would have paid, lowering your revenue
- It causes problems when the product is something you didn't need, so you pay to store, staff or dispose of it
- It causes problems when the supplier's quality or reliability falls short and you have no leverage to fix it
- It causes problems when the venue has exclusive catering, AV or other contracts that the in-kind sponsor would break
- It causes problems when the sponsor's value is inflated, so they expect benefits beyond what the contribution is worth
How to Value an In-Kind Sponsorship
Every in-kind sponsorship needs an agreed value, because it decides the sponsor's tier, appears in your budget and reports, and may matter for tax. The usual basis is fair market value: what you would have paid for the same goods or services from an unrelated supplier on normal terms.
- 1
Define the Contribution
List exactly what the sponsor will provide: quantities, dates, hours, specifications and delivery.
- 2
Find a Comparable Price
Get a quote for the same thing from another supplier, use a published price list, or ask the sponsor for an invoice showing the normal price and marked as donated.
- 3
Value What You Would Have Paid
Use the price you would actually have paid, not the sponsor's highest list price. If you would have bought a cheaper option, value it at that.
- 4
Agree and Record It
Write the agreed value into the sponsorship agreement, and record the contribution in your event budget as both income and expense so the true cost of the event stays visible.
| Contribution | Common basis for value | Watch for |
|---|---|---|
| Products and giveaways | Normal wholesale or retail price you would pay | Retail list prices for items you would have bought wholesale |
| Services such as AV or printing | A comparable supplier's quote for the same scope | Scope changes that reduce what is actually delivered |
| Venue or hotel rooms | The rate you would have been offered for the same dates | Rack rates far above any negotiated group rate |
| Media and advertising | The outlet's published rate card, less normal discounts | Rate card values for slots that would have gone unsold |
| Professional time | The provider's normal rate for the hours given | Hours estimated rather than agreed |
Put In-Kind Deals in Writing
In-kind deals are more likely to go wrong than cash deals, because there is more to deliver and less paperwork by default. Use the same agreement you use for cash sponsors, from our sponsorship agreement template, and add a schedule that describes the contribution precisely.
- What will be provided: quantities, specifications, brands and any substitutions allowed
- Delivery: when, where and in what condition, plus setup and removal if relevant
- Staffing: whether the sponsor's people are on site, and the rules they follow
- Agreed value: the fair market value both sides accept, and how it was set
- Recognition: the tier and every benefit, just as for a cash sponsor
- Insurance and permits: who carries liability, especially for food, drink, equipment and transport
- Shortfall: what happens if the contribution doesn't arrive or isn't as described, including the organizer's right to buy a replacement and reduce the benefits
IN-KIND SPONSORSHIP SCHEDULE Sponsor: [SPONSOR LEGAL NAME] Event: [EVENT NAME], [DATES], [VENUE] 1. Contribution The Sponsor will provide: [DESCRIPTION, e.g. coffee and tea service for NUMBER attendees at the main lounge, 7:30–10:30 each morning, including staff, cups and equipment] Delivery and setup: [DATE, TIME AND LOCATION] Removal: [DATE AND TIME] Substitutions: [NONE WITHOUT WRITTEN APPROVAL / AS AGREED] 2. Agreed value The parties agree a fair market value of [AMOUNT AND CURRENCY], based on [QUOTE / PRICE LIST / SPONSOR INVOICE MARKED AS DONATED]. [CASH COMPONENT, IF ANY: The Sponsor will also pay AMOUNT by DATE.] 3. Sponsor level and recognition The Sponsor will be recognized as [LEVEL NAME OR OFFICIAL PARTNER TITLE], with these benefits: - [BENEFIT, e.g. signage at the coffee station] - [BENEFIT, e.g. logo on the event website and mobile app at the LEVEL level] - [BENEFIT, e.g. complimentary registrations: NUMBER] 4. On-site rules Sponsor staff will follow the event rules, the venue's rules and any food safety or permit requirements, and the Sponsor will provide a certificate of insurance of at least [AMOUNT] by [DATE]. 5. Shortfall If the contribution is not delivered as described, the Organizer may arrange a replacement and [REDUCE THE SPONSOR'S BENEFITS / CHARGE THE COST TO THE SPONSOR / OTHER]. 6. Tax Neither party makes any representation about the tax treatment of this contribution. [ANY DONATION ACKNOWLEDGMENT WORDING AGREED WITH YOUR ACCOUNTANT] Agreed for the Organizer: ____________________ Date: [DATE] Agreed for the Sponsor: ____________________ Date: [DATE]
Mixing Cash and In-Kind in Your Sponsor Tiers
The most common question about in-kind sponsors is where they sit in your sponsor levels. Pick one rule and apply it to everyone, so a cash sponsor never finds out that an in-kind sponsor got the same tier for less.
| Approach | How it works | Best for |
|---|---|---|
| Full value | In-kind counts toward a tier at its agreed value | Contributions you would definitely have paid for in full |
| Discounted value | In-kind counts at a set share of its value toward a tier | Contributions you value but would have bought for less |
| Cash minimum | Higher tiers require part of the fee in cash, with in-kind making up the rest | Events that need cash flow for deposits |
| Official partner title | In-kind sponsors get a category title, such as Official Coffee Partner, outside the tier ladder | Category suppliers whose product is the recognition |
| Capped in-kind | Only a set number of in-kind sponsors per tier, or none at the top tier | Events where cash sponsorship is the main revenue |
Write the rule into your sponsorship prospectus so sponsors know before they ask. Our guide to event sponsorship levels covers how to build the tiers themselves, and sponsorship packages with examples and pricing shows how other events price them.
Finding and Pitching In-Kind Sponsors
Start from your budget, not from a list of companies. Every line you would pay a supplier for is a potential in-kind sponsorship.
- 1
Mark the Budget Lines
Go through your event budget and mark the lines a supplier could provide in kind: food and drink, printing, AV, transport, furniture, prizes and media.
- 2
Match Lines to Sponsors
For each line, list companies whose product is the thing itself and who want to reach your audience. Local businesses for community events; category leaders for trade events.
- 3
Pitch the Experience
Tell them who attends, how their product will be used and seen, and what recognition they get. A product in attendees' hands is the main selling point.
- 4
Make a Specific Ask
Ask for a specific contribution with a value and a deadline, not a general request for support.
Our guide on how to get sponsors for an event covers prospecting and outreach in more depth, and the sponsorship letter template gives you a first email to adapt for an in-kind ask.
Recognition, Tracking and Thanks
- Give in-kind sponsors the same recognition as cash sponsors at their tier, on the website, app, floor plan and signage
- Put recognition where the product is used: a sign at the coffee bar is worth more to a coffee sponsor than a logo on a page
- Track delivery like any other benefit: what arrived, when, in what condition, and who signed for it
- Photograph the contribution in use for the recap
- Record the agreed value in your event budget and post-event report, so next year's budget reflects the true cost
- Send a sponsor thank you letter that names what they gave and how it was used
In-kind sponsors are often the easiest to upgrade. A supplier who saw their product used well is a strong candidate for a cash package next year, so ask in the debrief what would make a larger partnership worthwhile for them.
