SayPro Ensure that all sponsorships are tracked within SayPro’s financial system and that invoices are processed on time.

Ensuring that all sponsorships are tracked accurately within SayPro’s financial system and that invoices are processed on time is critical to maintaining smooth financial operations and fostering trust with sponsors. This process helps ensure proper financial reporting, prevents errors, and ensures that sponsors receive their expected benefits in a timely manner. Below is a detailed plan for how SayPro can effectively track sponsorships and manage invoicing within the financial system.

1. Define Sponsorship Tracking Procedures

To manage sponsorships effectively, SayPro needs clear procedures for tracking all sponsorship-related financial transactions, including payments, invoicing, and deliverables. Establishing a centralized tracking system for all sponsorship agreements is key.

A. Centralized Sponsorship Database

• Create a Sponsorship Management System within the existing financial system or use specialized CRM software (e.g., Salesforce) or event management platforms that integrate financial tracking capabilities.
• This database should contain detailed sponsor records that track each sponsor’s:
  • Agreement Terms (including the sponsorship amount, benefits, and deliverables).
  • Payment Schedule (e.g., deposit date, final payment due date).
  • Invoice Status (paid, unpaid, or overdue).
  • Sponsor Contacts (for invoicing and follow-up).

B. Standardized Sponsorship Agreement Forms

• Ensure that every sponsor agreement is captured in a standardized format, with clear payment terms and deliverables outlined.
  • Include payment milestones (e.g., 50% upfront, 50% on event day).
  • Clarify due dates for payments and any penalties for late payments.

C. Event-Specific Tracking

• For each event, create a tracking sheet or project management tool (like Asana, Monday.com, or Trello) where sponsorship commitments are broken down by individual sponsor and event.
• This tool should track all sponsorship revenue and ensure that no payments are missed or overlooked.

2. Align Sponsorship Details with Financial System

For accurate tracking, all sponsorship details must be aligned with SayPro’s financial system (whether using an accounting software like QuickBooks, Xero, or an ERP system).

A. Integrate Sponsorship Agreements into Financial System

• After securing a sponsorship, enter the sponsorship agreement into SayPro’s financial system (e.g., QuickBooks, NetSuite) as an open receivable.
• Record the sponsorship revenue in the appropriate accounting categories (e.g., “Sponsorship Income” or “Event Revenue”).
• Set up reminder alerts for payment milestones, so the finance team can monitor the due dates and avoid delays.

B. Track Sponsorship Payment Schedule

• Use the financial system to track payment due dates based on the sponsorship agreement. For example, if a sponsor pays in two installments, the system should record the deposit and final payment and track whether both payments are made on time.
• Link sponsorship invoices with the corresponding sponsorship agreements in the financial system to easily track which sponsor has paid and which is still outstanding.

3. Generate and Send Invoices on Time

Timely invoicing is crucial to ensuring that sponsorships are paid promptly and there are no delays in the cash flow.

A. Create Automated Invoice Templates

• Create customized invoice templates within the financial system for sponsors, making sure the templates include:
  • Sponsor name and contact information.
  • Event name and sponsorship level.
  • Specific deliverables and benefits they are entitled to (e.g., logo on banners, speaking engagement, etc.).
  • Clear payment terms with due dates.
  • Bank details or payment instructions.
  Automated templates can help ensure invoices are consistent and professional.

B. Automate Invoice Creation

• Automate the creation and sending of initial invoices (e.g., a deposit or full sponsorship fee) once the sponsorship agreement is signed.
• Set up the financial system to automatically generate a final invoice once the event occurs, capturing the remaining payment balance, if applicable.

C. Invoice Payment Reminders

• Use the automated reminder system within the financial system to send payment reminders to sponsors who have not yet paid by the due date.
  • Example reminder template:
    • “Dear [Sponsor Name],
      We would like to remind you that your sponsorship payment of [Amount] for [Event Name] is due on [Date]. Please ensure payment is processed by this date to secure your sponsorship benefits.”
• Send regular follow-up emails if the payment remains outstanding, ensuring sponsors are aware of any late fees if applicable.

4. Monitor and Track Payments

Once invoices are sent, it is essential to monitor whether payments are received and recorded accurately.

A. Reconcile Payments with Invoices

• When payments are received, the finance team should reconcile the payment against the invoice records in the financial system.
• For partial payments, update the system to reflect the remaining balance due. Example:
  • Sponsor pays a 50% deposit of $5,000. Record this as a $5,000 payment against a $10,000 invoice. The system will automatically show the remaining $5,000 balance.

B. Follow-Up on Unpaid Invoices

• If a payment is not received by the due date, the system should automatically generate follow-up actions to ensure the outstanding amount is collected.
• Send a final payment reminder with any penalties or late fees clearly outlined if applicable.

C. Payment Tracking Dashboard

• Set up a payment tracking dashboard within SayPro’s financial system, showing:
  • All outstanding invoices.
  • Payment status (paid, unpaid, overdue).
  • Payment amounts and due dates.
  • Any discrepancies that need to be addressed.

This dashboard can help the team stay organized and proactively track all sponsor payments.

5. Ensure Sponsor Deliverables Align with Payments

One of the main factors in ensuring sponsors are satisfied is ensuring that all sponsor deliverables are fulfilled after payments are received.

A. Link Deliverables to Payments

• Integrate a deliverables checklist with each sponsorship agreement, where the event management team and the finance team can track that deliverables are provided after payment is made.
  • This can include:
    • Booth setup completed after full payment.
    • Branding materials placed once the sponsor’s final payment is received.
    • Speaking engagement scheduled once payment milestones are met.

B. Confirmation from Event Team

• The event management team should regularly check with the finance team to confirm whether sponsor payments are fully processed before event benefits are activated.
• For example, a sponsor should not be granted full branding exposure (e.g., their logo on all event materials) until the full payment is received.

6. Financial Reporting and Reconciliation

Proper financial reporting is essential for ensuring that sponsorship revenue is accurately recorded and reconciled for accounting and tax purposes.

A. Monthly/Quarterly Financial Reporting

• Use the financial system to generate reports on sponsorship revenue.
  • These reports should include:
    • Total sponsorship income.
    • Any outstanding invoices.
    • Payment status for each sponsor.
    • Percentage of total revenue from sponsorships.
• Ensure that these reports are shared with key stakeholders (e.g., the leadership team, event managers) for transparency.

B. Reconciliation of Sponsorship Revenue

• Reconcile sponsorship payments with the overall event budget to ensure the correct amount of revenue has been received and allocated properly.
• Audit trail: The financial system should create an audit trail of all sponsorship payments, making it easier to track discrepancies, identify errors, and verify the accuracy of financial records during tax season.

7. Ensure Compliance with Financial Regulations

Ensure that all financial processes for tracking sponsorships and processing invoices comply with local financial regulations and SayPro’s internal policies.

• Tax Compliance: Ensure proper tax treatment (e.g., VAT, sales tax) is applied to sponsorship fees and that invoices contain all required legal information.
• Internal Controls: Implement internal controls to verify all sponsorship funds are received and allocated correctly.

8. Sponsor Reporting and Relationship Building

In addition to financial tracking, it is important to maintain transparency with sponsors regarding payments.

A. Provide Sponsorship Reports

• After the event, share a financial summary with sponsors detailing:
  • The full payment status and any outstanding balances.
  • A summary of deliverables that were completed.
  • Additional partnership opportunities for future events.

B. Thank Sponsors for Timely Payment

• Send a thank-you note to sponsors after receiving their payments, expressing appreciation for their timely financial support and reinforcing the value of the partnership.

By following these steps, SayPro can effectively track all sponsorships within its financial system, ensuring that payments are processed on time, and sponsor deliverables are accurately linked to payment milestones. This streamlined approach not only improves financial efficiency but also fosters strong, trusting relationships with sponsors.