Every committee has the same conversation. "We should get some sponsors." Then someone gets handed a list of local businesses and a vague hope that they'll hand over a few hundred dollars for a logo.
They often will. But not for the reason most sponsorship packs claim. Know what a business really gets from you and you'll ask better, get more yeses, and keep the sponsors you land.
This guide covers the real value, the real cost, what to offer, and a script to use this week.
The honest bit: most small sponsorships aren't advertising
Picture a local electrician whose logo goes on a junior team's touring jersey. The team heads overseas, plays three games and posts some great photos. Few of the people watching are likely to need a sparky from your town.
Local exposure has some value, but it's small and hard to measure. Even Inland Revenue's sponsorship guidance (IS 26/10, April 2026) notes that a link between sponsorship and particular income usually can't be identified.
So be straight with yourself: a $500 jersey logo is rarely a marketing decision. It's a community decision.
Why businesses say yes anyway: relationships
Sponsorship mostly runs on people. The owner's kid is in the team. The owner played for the club twenty years ago. A committee member has been a loyal customer for a decade.
TidyHQ's NZ sponsorship guide says the same thing: start with businesses already connected to your members. In practice that means:
- ask every family in the group who they work for, own or buy from regularly;
- start with the warmest names, not the biggest;
- send the person who knows the owner, not the person with the nicest folder.
A cold approach to a business nobody knows is the hardest ask there is. A warm one is often a five-minute chat.
"It's tax deductible" isn't free money
This is the line that makes business owners roll their eyes. Sponsorship is usually deductible only when it's linked to promoting the business, and even then a deduction only cuts the tax bill by the business's tax rate. The business still pays most of the cost.
| Who gives | Amount | Tax saved, if deductible | Real cost to them |
|---|---|---|---|
| Company, at 28% | $1,000 | $280 | $720 |
| Sole trader on the 33% bracket | $1,000 | $330 | $670 |
| Sole trader on the 17.5% bracket | $1,000 | $175 | $825 |
These figures assume the business can use the deduction, and they ignore GST. A sole trader's saving depends on their actual top tax rate. The 28% company rate is from IRD's business tax rates page. So say it honestly: "If it's deductible and you can use the deduction, $1,000 costs a company about $720 after income tax." It sounds less salesy than "it's deductible", and owners trust you more for it.
Sponsorship or donation? Let the business choose
These are two different things, and mixing them up causes headaches.
| Sponsorship | Donation | |
|---|---|---|
| What it is | Payment for advertising or promotion | A gift with nothing material in return |
| What they get | Logo, signage, posts, mentions | A thank-you, a simple mention |
| Paperwork | An invoice (plus GST if your group is GST-registered) | A donation receipt, if you're an approved donee organisation |
| Who can receive it | Any group | Usually donee organisations (charities, schools, kindies, churches) for the tax benefit |
The key rule: if a business gets substantial advertising, it's sponsorship and you shouldn't issue a donation receipt (IRD QB 16/05). Agree up front what support and recognition you'll provide, because the actual arrangement decides the tax treatment. If they want a no-strings business donation, thank them without turning it into an ad. Our donations and tax page has the official detail.
What you can honestly offer
Offer only what you can deliver and prove afterwards. Here's a realistic menu:
- Thanks and goodwill. A mention at prize-giving, a team photo with the sponsor. Soft, but often the real reason they said yes.
- Promotion to your families. "180 families, most of them in your area" is genuine value for a local trade. You run it: a newsletter feature or an email you send on their behalf. Never hand over families' contact details.
- Social posts. Small, and only worth your real follower numbers. Screenshot the reach afterwards.
- Signage. Worth what your foot traffic is worth. A weekday field is empty. See signage sponsorship.
- A jersey logo. Mostly local identity. See jersey sponsorship.
- A trackable offer. "Show your club card for 10% off." The clearest way to show a real return. Ask the sponsor to count redemptions.
Then put a price on it. An unpriced prospectus makes sponsors assume the worst, says TidyHQ, which suggests indicative tiers of $500 to $3,000 a season for a 150 to 200 member club. Build three or four sponsorship tiers with specific deliverables, and always include a small yes: a $75 to $150 match-day sponsorship is far easier to agree to than a $3,000 package.
Ask for things that cost them little and are worth a lot
Cash isn't always the best ask. Many businesses have spare capacity, by-products or skilled time that costs them far less than its retail price. That's where in-kind sponsorship shines.
| Business | The ask | Why it's cheap for them |
|---|---|---|
| Mechanic | A WOF and service voucher | Labour in quiet slots; might win a regular customer |
| Arborist | A truckload of mulch or firewood | It's a by-product; the cost is mostly transport |
| Hair or beauty salon | A cut or treatment voucher | Unbooked chair time |
| Café or bakery | Coffee vouchers, day-old bread for a sizzle | Unsold product; vouchers bring new customers |
| Restaurant | An off-peak dinner for two | Empty tables on quiet nights |
| Electrician or plumber | A free safety check of the clubrooms | A short job that introduces them to the committee |
| Gym | A one-month membership | Near-zero extra cost; trials turn into members |
These make great prizes for a donated-prize raffle or a silent auction, and they're valued at full retail on the night. Ask for a specific item, make it clear "no" is fine, and confirm it in writing with the value. Don't accept anything you'll then have to store, cart around or dump.
A short ask script
Ask in person, at a quiet time of day. Keep it under a minute:
"Hi Sam, I'm Jo from the club. My daughter plays in the under-12s with your son. We're looking for three local businesses to back the juniors this season. For $500 you'd get your logo on the training tops, a thank-you post each month to our 140 families, and a mention at prize-giving. Honestly, the value is mostly community goodwill rather than advertising reach. If it's deductible for you, after income tax it costs a company about $360. Could I drop in a one-pager and have a ten-minute chat?"
For an in-kind ask, swap the middle: "Rather than cash, would you donate a WOF-and-service voucher for our auction? We'd thank you by name to our 300 families and send you a photo of it in use."
Then leave a one-page proposal. Copy this outline:
[Group legal name]: [season or event] sponsorship
- What it's for: [new junior kit / the Year 6 camp], goal $[amount]
- The ask: $[amount] + GST if your group is registered, or [in-kind item]
- What you get: [logo on training tops], [monthly thank-you post to our [number] families], [mention at prize-giving]
- Dates: [season start to end]; reply by [date]; report sent by [date]
- Contact: [name], [phone], [email]
Fill My Jersey: sponsorship for families
Not every supporter owns a business. Fill My Jersey lets families and friends back the team in small amounts.
Print a training jersey with the numbers 1 to 40. A family picks a number and pays that many dollars, and their name goes on the jersey. Sell every number and you've raised $820 (1 + 2 + ... + 40). Go to 50 numbers and it's $1,275.
- Take bookings in a shared sheet so nobody double-books a number.
- Cross numbers off the graphic as they're paid and repost it.
- Sell the cheap numbers first, then push the big ones: "Who'll take 40?" Grandparents and local businesses often do.
- Print the names once, at the end.
Without a prize or draw, it isn't gambling. Add a prize draw and it becomes a raffle with its own rules. Whether you can issue donation receipts depends on who receives the money and whether supporters get a material benefit; paying towards your own child's trip, for example, usually doesn't qualify. For a whole team or an individual's trip, pair it with a family and friends sponsorship letter or a pick-a-number board.
Thank them properly, then report back
The renewal is won after the season, not at the first pitch.
- Deliver everything you promised, and keep proof: photos, post screenshots, offer redemptions.
- Thank them publicly. A tagged Facebook post, a newsletter mention, a team photo in the kit.
- Give them something to display, like a "Proud supporter of [your club] 2026" window card.
- Send a one-page end-of-season report with photos, posts made, families reached and what the money paid for. "Your $500 bought new balls and helped two kids play" is what gets a yes next year.
- Keep a sponsor list with contacts, amounts, renewal dates and what you promised, so next year's committee doesn't start from scratch.
Do that, and a one-off sponsor becomes part of the club.