What are business partnerships?
- Author: Creative Australia
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Business Partnerships
- What are business partnerships?
- What can business partnerships achieve?
- Are business partnerships right for you?
- How to prepare your business partnership offer
- How to find and secure business partnerships
- How to manage a business partnership
- Renew, revise or conclude a business partnership
- How to develop a business partnership portfolio
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What are business partnerships?
In the arts and cultural sector, a business partnership is a formal relationship between a business and an arts partner, where both parties give and receive something of value.
An arts partner could be an artist, arts organisation, festival, venue or cultural project.
A note on terminology
The terms ‘business partnership’, ‘corporate partnership’ and ‘sponsorship’ are often used interchangeably to mean the same thing. There is no single term used consistently. For example, the Australian Charities and Not-for-profits Commission uses corporate partnerships, and the Australian Taxation Office uses sponsorship.
In these guides, we use ‘business partnerships’ throughout.
How do business partnerships work?
Business partnerships are transactional relationships where there is an exchange of value.
The business gives the arts partner money or in-kind support. In-kind support can include goods, services, expertise or other resources. It’s sometimes called contra.
In return, the arts partner provides the business with agreed material benefits. These can include:
- brand visibility
- access to audiences
- client hospitality
- staff engagement
- social and community impact
- positive association with a program, place or cause.
Each business partnership is different. Some are one-off or event-based while others are longer-term. It depends on the goals, needs and circumstances of each partner.
Difference between business partnerships and philanthropy
The difference is whether the business expects material benefits in return for its support. If they don’t receive something in return, their support is corporate philanthropy. Many businesses donate through a corporate foundation.
| Business partnerships | Corporate philanthropy | |
| How it works | The business provides support and receives agreed material benefits in return. | The business provides a gift without receiving material benefits. |
| Why the business provides support | Meet business goals while supporting arts and cultural work. | Support an artist or organisation’s work and impact. |
| What the business may receive | Agreed benefits like brand exposure, tickets, hospitality, opportunities for staff and clients. | No material benefits. They may receive recognition and a tax deduction. |
| How it's arranged | Usually through a written agreement. | Usually through a gift or grant. |
| Cost for the arts partner | Often higher as agreed benefits need to be delivered and the partnership managed. | Often lower, although managing donor relationships may still take time and resources. |
What can business partnerships achieve?
See how businesses and arts partners can benefit from a partnership.
