SPONSORSHIP POLICY 2023
Massive Canada Building Systems Inc., receives many requests to sponsor various organizations such as local sports clubs, charitable organizations, universities, regional Chamber of Commerce’s and other events both locally and across the Province. Massive Canada is restrictive and selective in its consideration of sponsorship because the business value is usually limited while there are ethical risks to be considered.
- Purpose of the Policy
This policy was created to provide clarity in what and how Massive Canada sponsors, setting out the criteria and decision-making process for Massive Canada’s sponsorship activities. It should make it easier for Massive Canada employees to manage sponsorship requests in a way that strengthens customer relationships while, avoiding ethical dilemmas or conflicts of interests. All sponsorship activity must comply with this sponsorship policy and balance with Massive Canada’s revenue generation.
The policy shall specify:
- activities that are classified as sponsorship;
- the connection between sponsorship and Massive Canada’s business ethics;
- what and how Massive Canada shall sponsor, and;
- who it is that makes sponsorship decisions.
The policy applies to all employees, temporary employees, and officers of Massive Canada Building Systems Inc., (including all affiliates and business units in all jurisdictions). The policy covers all sponsorship issues, irrespective of amount or activity involved. For the sake of simplicity, the term “employee” as used in this document refers to employees, temporary employees and directors.
The starting point for the policy is that Massive Canada generally refrains from offering sponsorships. Where sponsorships are considered, it is a fundamental rule that any sponsorship Massive Canada does offer, whether internal or external, must be reviewed and approved by the relevant business area Director or Manager, and in agreement with Massive Canada’s CEO, CIF and CFO, as they will make final decision on what Massive Canada can sponsor, irrespective of amount or activity involved. Non-compliance with this policy may result in disciplinary measures, including but not limited to a written warning or dismissal.
Massive Canada shall yearly prepare a budget for sponsorships based on past generated revenue, yearly projection of revenue, anticipated levels and types of sponsorships and alignment with Massive Canada’s values. Final determination of the budget for sponsorship participation, must receive Board approval.
- General Principles – what sponsorship means to Massive Canada
The term “sponsorship” refers to any situation where Massive Canada, or anyone acting on its behalf (such as a contractor), provides contributions, through the provision of goods or services, to a third party at no cost or a discounted cost, or where Massive Canada makes charitable donations to third party organizations. In a sponsorship, Massive Canada plays an active role by providing funds, financial support or services, and in return it receives the benefit of having its corporate name associated with an important industry, charitable or community-related initiative. Classification as “sponsorship” requires mutual counter-performance or other consideration between the parties. If no such requirement is imposed, the activity is classified as a gift or donation. The Massive Canada CEO and CFO makes decisions on donations.
It can sometimes be difficult to determine whether an activity is properly classified as a sponsorship. If you are uncertain as to whether a particular activity qualifies as a sponsorship, you should contact the Office of the CFO for clarification.
3. Ethics and Conflicts of Interest
The connection between sponsorship and Massive Canada’s business ethics.
To prevent the risk of corruption, Massive Canada employees shall act in accordance with the following: Sponsorships may not under any circumstances be provided:
- to influence a pending decision;
- as part of a personal benefit to an individual or individuals associated with the recipient organization;
- without complying with the approval and documentation requirements of this policy;
- as part of a transaction involving the exchange of services within or outside the scope of a project;
- or, to in any other way influence someone improperly.
All activities sponsored by Massive Canada shall be aligned with the company’s business ethics policies, which set high standards and require Massive Canada employees, and contractors acting on Massive Canada’s behalf, to always act ethically and in Massive Canada’s best interests. Accordingly, sponsorships may not be connected to fraud, secret agreements, conflicts of interest, or bribes and may not be coercive or result in collusion or other unlawful competition.
- Definition of Sponsorship – what can Massive Canada sponsor
Sponsorship is a business relationship between two organizations. Traditionally, sponsorship would be between Massive Canada and a type of business or corporation, or a community charity event, but it could also be extended to government organizations.
Corporate or government organizations look for marketing and community relations opportunities in exchange for money, products or services, and they want corporate recognition for their involvement. Sponsorship shall promote the following values:
- Clearly support Massive Canada’s business on a long-term basis by strengthening Massive Canada’s brand, marketing position or recognizes Massive Canada’s expertise;
- Provide long-term value to the beneficiaries of the sponsorship
- Be aligned with Massive Canada’s business ethics and values
- Be aligned with Massive Canada’s brand guidelines
- Be aligned with Massive Canada’s revenue generation
- The sponsorship suits our overall business strategy and aligns with our business objectives
- The sponsorship has full disclosure and accountability
- Be a sponsor when the sponsorship contributes to achieving net zero emissions or supporting circular economy development
Massive Canada may solicit and accept sponsorships for events, programs and operations within the terms
outlined in the above. Sponsorship monies are deemed a desirable form of revenue diversification which allows Massive Canada to keep membership dues low and event fees affordable while contributing to the operational funds of the organization. Massive Canada may consider in kind, indirect and monetary sponsorships. Note, Massive Canada will not be issuing charitable tax receipts in return for sponsorship funding.
5. Definition of Non-Sponsorship – what can Massive Canada not sponsor
Massive Canada does not sponsor activities that lack any clear connection to Massive Canada’s business or that raise potential risks under Massive Canada’s ethics & conflict of interest guidelines. Examples of prohibited sponsorships include the following:
- Sponsorships for organizations that are not relevant to Massive Canada’s business or business interests;
- Any sponsorship intended to benefit a specific private individual or individuals;
- Activities with a political or religious connection, including any sponsorships for political organizations or any company that is majority-owned by, or otherwise acting on behalf of, a government official or political organization of any country;
- Any other activities that are incompatible with Massive Canada’s values and business ethics
- Any activity that is deemed criminal activity
- Sourcing from slave or child labor
- Degrading sexual violence or physical violence
- Production of land mines, chemical weapons, arms or munitions or promotion of non-governmental use of weapons
- Sourcing of products or labor in repressive regimes
- Be a sponsor where participation would contribute to ecological degradation
6. Responsibility for sponsorship decisions
Sponsorship inquiries should be directed, in the first instance, to the CFO. In agreement with Massive Canada’s CEO and CFO, they can decide what Massive Canada can sponsor if the amount or activity involved is below a $10,000 threshold.
- Sponsorships limited to events or single program actions (ie: support for an Annual Event or Conference) totaling no more than $10,000 and in full compliance with the sponsorship policy, is delegated to the CEO and CFO.
- Sponsorships limited to events or single program actions (ie: support for a funding-raising event or Investor’s Conference) totaling more than $10,000 and in full compliance with the sponsorship policy; the decision will need to receive agreement from the Board of Directors.
- Sponsorships of any size involving exclusivity, with a length of three years or more, an amount exceeding $10,000 will need to receive agreement from the Board of Directors.
The Board of Directors, using its normal decision process, makes the decision, and its decision is final. Sponsorships shall be recommended to the Board by the CFO. All sponsorships shall be reported quarterly to the Massive Canada Board, within regular event reporting or status reports, so that a database can be maintained and potential major sponsors identified.
Longer sponsorships shall be reviewed with more rigor and detail where the risks to Massive Canada’s credibility and integrity are higher, (ie national or multi-year agreements). In such circumstances, information obtained solely from the potential sponsor is rarely sufficient. It may be sufficient in combination with public information or additional research. Any sponsorship question may be raised with the Board between meetings if staff wishes to draw on a wider knowledge and perspective available from Board members.
Also, Massive Canada shall not be the source of any public information about rejected sponsorships. To reduce liability and maintain relationships in case details change in the future, rejections shall be kept confidential. The information will normally be known only to the staff or the committee chair, and the Board if it was involved.
Massive Canada shall preface any questions by noting Massive Canada, as a legal and law-abiding organization, must withstand extra scrutiny. The questions are asked to fulfill due diligence requirements. If an organization representative is later found to have misled Massive Canada, Massive Canada has the right to cancel the agreement.
9. Scope of Sponsorships
Benefits and recognition: The organizations that Massive Canada shall sponsor, shall recognize Massive Canada in ongoing ways, such as the display of Massive Canada’s name and logo, a few words of description and a link to Massive Canada’s website. Other methods are member communications and literature related to the sponsorship program. Additional recognition such as the use of product names, banners, advertisements or special promotions shall involve the provision of additional resources to Massive Canada. Massive Canada staff shall develop a schedule of sponsorship fees for such promotion. This schedule of fees shall require Board approval in instances where the fee for any one sponsor exceeds $10,000.
Complete recognition levels for sponsors can be found in Appendix I.
Long-Term Sponsorship Terms: Sponsorship from Massive Canada may be negotiated for any specified time period. Relationships that are anticipated to exceed three years require a review at least every three years. Event sponsorship may be for one event or a related series of events such as requests for sponsorship of yearly bursaries, scholarships or an endowment.
Massive Canada Sponsorships exceeding a single event or action shall be confirmed by legal contract. In addition to the items stated above, the contract shall clarify relevant aspects of:
- When Massive Canada will provide payment, or make promised in kind goods or services available;
- Who the main contact(s) will be for each party involved in the contract;
- Any interim or final reporting agreed upon, how the agreement shall be monitored and when reviewed;
- When the agreement terminates, and how early termination is affected;
- Any minimum or maximum amount, and how determined, and any exclusivity commitment;
- How any failure to meet commitments will be handled. (ie: what happens if the event is cancelled).
Short-Term Sponsorship Terms: Even such short agreements shall include a clarification of the planned use of Massive Canada’s sponsorship support;
- minimum recognition of what Massive Canada shall receive;
- the need to use each other’s logos approved in advance, and;
- the statement that Massive Canada does not endorse sponsor’s products or services.
A sample letter of agreement is attached for a short-term sponsorship (Appendix II).
Number and Size of Sponsoring: For small events, sponsoring one or two organizations makes it easier for each organization to receive sufficient recognition. For larger events or programs, the organization or event must be sufficiently significant for Massive Canada to enter into discussing the branding of the event or program, with Massive Canada’s corporate or product name. The total amount eligible for sponsorship shall be based on the full cost of the item including all related overhead. All event and program cash sponsorships shall include a charge of 10 – 15% to be applied to operational costs.
Massive Canada shall be recognized only in connection with the event, which may include any advance publicity or programs, web or e-bulletin announcements, event signage, oral thanks, etc. If Massive Canada is accepting more than one organization to sponsor, recognition levels may be assigned, depending on amount or amount range. This may be done by linking sponsorship directly to a portion of the event, ie: reception or by identifying levels (e.g. platinum, gold, silver, bronze and friendship). The Massive Canada office shall collect information on such recognition levels from the organizers to avoid unintentional inconsistencies. Massive Canada may establish common names and ranges for sponsorship levels with generic benefits applicable to each level of an organizational sponsorship.
Programs and events may use the Massive Canada name, if Massive Canada is providing 50% or more of Massive Canada’s total related costs, including overhead and share of operational costs. Such naming shall always be time-limited and require advance Board approval.
Massive Canada will not grant exclusivity extending beyond a single event without a full examination of the benefits to Massive Canada. Large companies requesting exclusivity must:
- Be funding a minimum of 75% of the total related costs and share to be applied to operational costs
- Specify the corporate division, if applicable of any exclusivity request
Disclaimer: In no circumstance will Massive Canada become involved in a situation that requires it to endorse a sponsor’s product. Massive Canada shall recognize that members and the general public will assume Massive Canada has researched its sponsors and decided that the company and its products represent the highest ethical standards. A prominent disclaimer shall therefore accompany each sponsorship recognition, noting that Massive Canada thanks its sponsors for their support but does not endorse their products or services. Sponsors wishing to promote their support of Massive Canada may use the name, logo, URL (live linked where possible), in accordance with contract terms regarding advance approval of the specific content and wording from Massive Canada. In the absence of a signed contract, sponsors may not use the Massive Canada name or logo in any public material. Any unauthorized use makes the existing sponsorship agreement void and disqualifies the organization from further Massive Canada sponsorship, unless the Board determines that eligibility has been restored.
8. Employee Responsibility
All managers are responsible for ensuring that they and their employees are aware of and comply with this policy. All employees are responsible for familiarizing themselves with the guidelines and following them at all times. All Massive Canada employees shall report to their supervisor, or their supervisor’s manager, any and all instances of which they are aware or suspect that sponsorship-related activities have occurred, or are contemplated, that violated this policy or other Massive Canada’s policies.
9. Update Process
Given changes in societal views and values as well as monetary values, the Massive Canada Board shall review its sponsorship policy at a minimum of every 24 months.
Recognition Levels for Sponsorship Packages
|*Examples of Categories||Platinum $10,000 or >||Gold $5,000||Silver $2500||Bronze $1000||Friends $999 or <|
|Banner at Location||1||1||N/A||N/A||N/A|
*Recipients of the sponsors usually have list of categories in which they display the sponsorship’s contribution
List of Sponsorships
- Community Support
- Port Moody Headquarters
- Port Moody events (Spike awards for example)
- Tri-Cities (Tri-cities organizations & Chamber of Commerce)
- Metro Vancouver region (Buildex)
- Williams Lake
- Dry grad
- Annual Chamber of Commerce Expo
- Communities where we have significant projects
- BCIT Mass Timber program
- UBC Entrepreneurship program
- UBC Forestry Dept
- Thompson Rivers University
- Sustainability and Circular Economy
- Columbia Institute
- Reconciliation and Exclusivity
- Events catering to elected officials
- Columbia Institute
Short-Term Sponsorship Agreement
Re: Short-Term Sponsorship Agreement between Massive Canada and Company X
This Sponsorship Agreement (the “Agreement”) is made and entered into as of the last signature date below (the “Effective Date”) by and between COMPANY X with an office at ADDRESS (“Company X”) and the sponsor identified below (“Massive Canada”).
COMPANY X is hosting the following event: EVENT NAME on DATE and the Sponsor, Massive Canada desires to sponsor the EVENT NAME. In consideration of the mutual promises and covenants contained in this Agreement, the parties hereby agree as follows:
- COMPANY X Obligations. In consideration for the Sponsor’s participation in the event, Company X shall provide the Sponsor the benefits set out in Appendix X, which is incorporated and hereby made part of the agreement.
- Massive Canada’s Obligations. For its participation as a Sponsor in the EVENT NAME, the sponsor shall pay to Company X a fee (“the Sponsorship Fee”) as set out below:
Platinum Sponsorship = $10,000 or above
Gold Sponsorship = $5,000
Silver Sponsorship = $2,500
Bronze Sponsorship = $1,000
Friends = $999 or less
The Sponsorship Fee is payable to Company X, due on the date of signing this Agreement.
- Sponsor Trademark/Sponsor Materials. Subject to the terms and conditions of this Agreement, Sponsor grants to Company X the right to use Sponsor’s trademark, trade names, and logo designs and company descriptions as prepared and delivered to Company X by the Sponsor (“Sponsor Materials”), in any medium of advertising, marketing materials, and/or promotional goods distributed solely in conjunction with the event and in accordance with Sponsor’s trademark usage guidelines. It is noted that Massive Canada does not endorse sponsor’s products or services.
Massive Canada Building Systems Inc.
Propose $20,000 + 0.4% of annual revenues:
- Community Support (school fundraising, sports fundraising) $6,000 +0.1%
- Education (Universities) $5,000 +0.1%
- Sustainability and Circular Economy $6,000 +0.1%
- Events catering to elected officials $3,000 +0.1%