Sponsorships, Endorsements, and Related Agreements

Proposed sponsorships, endorsements, and related agreements with external organizations must comply with the CSU’s systemwide University Endorsement Policy and be approved by the University’s Sponsorship and Endorsements Review Committee. Proposed sponsorships, endorsements, and related agreements are subject to additional review, as applicable, by other appropriate offices, including, but not limited to, Contracts and Procurement.

In reviewing proposed agreements, the Committee will assess if there is:

  • a clear public benefit aligned with the University’s mission and values;
  • appropriate financial support to the University (or other resources such as labor or facilities) in exchange for recognition or endorsement, material goods, training, or use of the University name or marks;
  • any conflict with plans for philanthropic cultivation and solicitation;
  • any conflict with the ability to pursue future partnerships based on proposed exclusivity or non-compete causes;
  • alignment with established concepts and characteristics associated with the University brand and any University exposure to reputational risk;
  • a negative impact on University operations;
  • alignment with applicable California State University (CSU) policy; and
  • alignment with established guidelines for any planned use of the University name or marks.

This policy applies to proposed:

  • sponsorship agreements, including those for events, programs, and termed naming rights for University facilities;
  • commercial partnerships;
  • trade-use agreements;
  • endorsement of external organizations, co-branding, or recognition as “exclusive,” “preferred,” or “official;”
  • employee testimonials, quotes for case studies or project summaries, or other endorsing language;
  • licensing of the University name, logo, trademarks, and/or other indicia for branded consumer products or services, including, but not limited to, advertising and promotional activities; and
  • endorsements promoted to alumni under commercial affinity agreements that provide benefits to alumni, alumni programs, or the University.

This policy does not apply to:

  • recognition of philanthropic gifts to the University made through the institutionally affiliated CSULB 49er Foundation;
  • grants for sponsored projects received through the institutionally affiliated CSULB Research Foundation;
  • employee endorsement of scholarly books, publications, or educational material;
  • endorsements made by an employee acting as a private individual without reference to the University or use of its name, logo, trademarks, branding, or other indicia; and/or
  • academic memberships or partnerships with professional organizations.

Committee membership

Appointments of University and auxiliary representatives to the Sponsorship and Endorsements Review Committee are made jointly by the University’s Vice President for Administration and Finance and the Vice President for University Relations and Development.

Protocols

University employees may not:

  • violate the CSU Conflict of Interest Code or any other applicable state or federal law or regulation;
  • grant or accept favors for personal gain;
  • participate in any CSU procurements and/or business transactions if they have a personal financial interest in the transaction;
  • solicit or accept favors for the University in which a higher public interest would be violated;
  • condition any actual or potential business relationship on a charitable gift or sponsorship to the University; or
  • solicit sponsorships or charitable donations if they are involved in contract negotiation or approval related to a corporation’s line of business.

Revenue received for the commercial activity described in this policy may result in unrelated business income tax (UBIT) income. The designated campus tax coordinator and campus counsel should be consulted in the development of the agreement, and the campus tax coordinator must have access to the final agreement and any amendments. If there are any questions about potential tax implications of these agreements, systemwide legal reporting and tax professionals are available to assist the campus tax coordinator with the agreement analysis.

Definitions

Advertising: messages containing qualitative or comparative language, price information, or other indications of savings or value, an endorsement, or an inducement to purchase, sell, or use such products or services. Revenue received for advertising may be subject to Unrelated Business Income Tax per Internal Revenue Code section 513(c).

Alumni Affinity Agreement: contractual agreements to market goods and services such as credit cards, insurance products, and travel programs to alumni, typically featuring university marks.

Branded Consumer Product: any goods bearing University marks (e.g., clothing, souvenir items, gifts, and any other emblematic merchandise), whether such goods are commercially or personally produced and regardless of whether the intent is commercial (i.e., offered for sale) or promotional (i.e., given away).

Commercial Partnership Agreement: contractual agreements whereby the University is purchasing goods or services, and the supplier is providing additional benefits in return to the University, such as royalties, revenue-sharing, product enhancements and discounts, sponsorships, internships, or other student/academic services.

Donation: a charitable gift of funds, goods, or services given by a donor. Donations are gifts given without return consideration or “quid pro quo.” A donation is a charitable act given to a cause or population, often fulfilling a need. It is appropriate for a donor to receive acknowledgment but not appropriate to expect or ask for economic benefit, endorsement, or special consideration.

Endorsement: statements, appearances, physical displays, and other actions to publicly promote the commercial value of a commercial good, service, or business entity to that entity's existing or potential customers. The endorsement of an organization may include, for example, allowing an organization to promote itself as an official sponsor of or partner with a University program or approving the use of a testimonial by an authorized representative of the University.

Grant: a form of contribution such as cash, services, and goods that can be a benefit for an organization. However, grants are funds that usually require an application process or proposal submission, and they usually have reporting requirements.

Licensing Agreement: a legal contract where the University grants the licensee the right to produce and sell goods, apply a brand name or trademark, or use patented technology owned by the University.

Public Benefit: exists when an activity, agreement, or relationship with a third party provides financial resources, in-kind resources, or other benefits of material value, through appropriate means, enabling the University to advance its mission and goals.

Sponsorship Agreement: payment made by trade, business, or organization where there is no arrangement or expectation of any substantial return or benefit other than the use or acknowledgment of the business's name or logo (or product lines) in connection with the activities of the organization that receives such payment. Such use or acknowledgment does not include advertising products or services, including messages containing qualitative or comparative language, price information, or other indications of savings or value, an endorsement, or an inducement to purchase, sell, or use such products or services. Qualified sponsorships may include, but not be limited to, preferential seating, invitations to special activities or events, or other benefits which may reduce the tax deductible and public benefit value of the sponsorship.

Recognition: may include, by example, termed namings of University facilities or an organization’s logo, tagline, and explanation of its relationship with the University appearing on university digital displays, physical signage, social media, websites, publications, or advertising.

Trade-Use Agreement: trade usage, or trade out, transactions represent an exchange of goods, materials, or services intended to reduce costs to the University. It is commonly the trading of game or performing arts tickets, media time and advertising, and other services and intangible benefits for athletic gear, courtesy cars, airline tickets, hotel rooms,  restaurant meals, catering,  and other tangible benefits.

University: inclusive of all divisions, departments, and programs of the state-side entity as well as its authorized university-affiliated auxiliaries, which are separate legal entities that operate pursuant to written operating agreements with the University

Interpretation

Nothing in this policy shall be interpreted to:

  • hinder or interfere with scholarly study, research, and evaluation of goods, services, or business operations; or the dissemination of findings and data related to scholarly activity;
  • prohibit a university employee from responding to an inquiry or reference request from a specific potential customer regarding the University's experience with or evaluation of a good, service, or
  • vendor provided that such a response will not be incorporated into publicly disseminated advertising;
  • adversely affect the University's ability to enter into agreements with respect to its intellectual property, and to publicly promote and advertise the commercial value of its intellectual property;
  • adversely affect the University's ability to enter into licensing or any other agreements with respect to its names, logo, trademarks, branding, and other indicia; or
  • adversely affect the University's ability to accept qualified sponsorships and other gifts that recognize the donors.

Policy Owner(s)

Administration and Finance
University Relations and Development

Authority

This policy is issued pursuant to the CSU University Endorsements policy.

Related Resources

Alumni Affinity Agreement Policy
Athletic Usage (Trade Out) Policy
Contracts and Procurement Policy
Sales, Service, and Advertising of Alcoholic Beverages
Political Reform Act, Government Code section 81000 and related regulations
Government Code section 1090 et seq.
California Education Code sections 89090-89090.5
CSU Conflict of Interest Code

Approval

Jane Close Conoley, Ph.D.
President
August 29, 2024

Revision Approvals

none