Chapter 2: Commercial Sponsorship

2.9.3 Bank and Financial Literature

. IAW DoD 7000.14-R, Volume 5, 340404 E. and G., Department of Defense Financial Management Regulations (FMRs), off-base financial institutions are not permitted to distribute competitive financial literature or forms on the installation if there is an on-base financial institution (bank or credit union). An on-installation financial institution (bank/credit union) declining an opportunity to sponsor a program does not authorize FSS to seek or accept sponsorship from an off-installation financial services provider. This is not a "First Right of Refusal" option. However, financial institutions which also provide other products/services are authorized to sponsor MWR programs providing their marketing and advertising is limited to products/services which do not compete with financial services provided by any on-installation financial institutions. (Include appropriate optional clauses in the Commercial Sponsorship Agreement provided at Attachment 2.) In a similar manner, DoDD 1344.7 and AF/DPDF Memo, Commercial Solicitation by Academic Institutions, provides that Academic Institutions (AIs) with a Memorandum of Understanding (MOU) with the installation have primary access to the base population. AIs without an MOU may not engage in personal solicitations or display competitive literature on the installation without the express written permission of the installation commander. Due to these stringent rules, a commercial sponsorship agreement with an off-installation AI or financial institution is not often possible. Contact AFSVA/SVK for additional information

2.9. Exclusivity

1. Exclusivity pertains to limiting of sponsorship support from only one company for a particular product category

2.1.3.1 Commercial sponsorship program manager/coordinator:

1. Prepares CSA based on offer using the approved template. 2. Contacts applicable AAFES general manager and contracting offices to ensure the proposed offer does not conflict with any existing or pending contracts or other working agreements. 3. Submits agreement to the servicing Judge Advocate (JA) to determine it to be legally sufficient. The FSS Commander/Director is also made aware of the sponsorship offer. 4. Following JA approval, agreement is signed by the NAFI representative (commercial sponsorship program manager) and the sponsor. Lastly, the CSA is signed by the Air Force approving authority as specified in Chapter 1. 5. The sponsor, commercial sponsorship manager/coordinator, and the appropriate Air Force approval authority must sign the final agreement prior to providing sponsor recognition in support of the activity, event, or program.

2.1.4. Agreement Parameters

1. Sponsorship is accepted on behalf of the NAFI to which it is offered, not by the installation for any other entity. 2. Agreements are for a specific MWR activity(s), event(s), or program(s) and may not exceed one year in duration. 3. The period covered by the original agreement and any annual renewals cannot exceed five years. 4. Sponsors may be granted rights of first refusal for a subsequent year as an option for renewal. Rights are for the next one-year period. Renewals may or may not be exercised and are solely at the discretion of the NAFI.

2.1.2.2. Commercial sponsorship managers/coordinators and inquiries

2.1.2.2. Commercial sponsorship managers/coordinators may respond to inquiries by providing specific program needs and associated details.

2.1.2.3. Any other installation-initiated contacts with potential sponsors to elicit offers are prohibited.

2.1.2.3. Any other installation-initiated contacts with potential sponsors to elicit offers are prohibited.

2.10. Endorsement Restrictions.

2.10.1. Sponsors may not be provided "official" product or service status (e.g., the "official soft drink" of an event). 2.10.2. Any reference implying endorsement is prohibited. 2.10.3. Do not allow the use of the Air Force insignia, the initials "USAF," the Air Force seal, the Air Force emblem, the Air Force FSS logo, Air Force Services logos, or any other reference to any part of the Federal Government as an incidental benefit to commercial sponsorship of an event.

2.12. Ownership.

2.12.1. Use of a sponsor‟s or donor‟s property such as scoreboards, jumbotrons, and similar items which would enhance an event may be relinquished to a NAFI for specific periods of temporary use. These same items may be transferred to the NAFI permanently if the sponsor or donor relinquishes all ownership rights and so states in the CSA or offer letter. The sponsor identification and disclaimer must be of a size which is readable in the immediate area. The identification must be removable without defacing it if the item will become property of the NAFI following the term of the agreement. 2.12.2. If a sponsor offers property as a prize, the sponsor or other owner may maintain possession and ownership of the property pending an actual win or other qualifying action (such as a hole-in-one or similar event). 2.12.3. In any such case, the NAFI must have the sponsor‟s or owner‟s written agreement to relinquish ownership rights to the property in the event of a win or qualifying action.

2.17. Accounting and Procedures for Handling Assets.

2.17.1. Monetary support for sponsorship is by check made payable to the installation MWR Fund or electronic transfer where processes are in place. Payment for advertising may be by currency, check, or credit card. 2.17.2. For capital assets, the sponsor must submit a letter transferring ownership to the NAFI. Expendable equipment, supplies, resale inventory, and prizes require documentation of their Fair Market Value (FMV) indicated in the Commercial Sponsorship Agreement. These items may be distributed by the NAFI to customers as prizes, premiums, awards, etc. 2.17.3. A sponsor may give premium-type items costing $20 or less FMV directly to customers.

2.3.1 Guidelines that must be adhered to

2.3.1.1 -Neither the sponsor's name nor its products or services may appear in the event title along with the name of the FSS activity, installation, command, Air Force, or any other part of the Federal Government. 2. The line above or below the title may identify the sponsor (e.g., "XYZ Air Force Base and ABC Corp., present, (next line) "The Firecracker 5K" when support is substantial, or "The Firecracker 5K," next line "sponsored in part by (name of sponsor)" when sponsors provide lesser support). 3. Except as specifically stated elsewhere in this AFI, all media and/or promotional materials mentioning the event and the sponsor name and or logo together must include the official disclaimer, "No Federal endorsement of sponsor intended." As a limited exception, a single banner bearing the disclaimer may be used in lieu of disclaimers on each individual banner where all such banners are displayed in a clustered area. 4. Alcohol company/manufacturer sponsors must also provide a "responsible use" campaign logo/message to be included in all promotional materials and in banner form at the event site.

2.4 Written approval must:

2.4.1. State the specific time for which the promotion may be executed. 2.4.2. Be approved and have materials inspected by the installation commander or designee. 2.4.3. A sponsor offering support may be granted permission to mention its support in its internal communications or an ad appearing in the local media providing the content is approved by the installation commander with PA endorsement. For MAJCOM or AFSVA programs, approval is AF/A1S.

2.5. Installation Exchange and DeCA Promotions:

2.5.1. Sponsors may conduct promotions (such as sales or distribution of coupons) under the Commercial Sponsorship Program in installation exchanges and commissaries (subject to the agreement of AAFES and/or DeCA) if the sponsors provide benefits from the promotion or additional financial or in-kind support to the MWR program as part of the sponsorship. 2.5.2. Materials used in such promotions may name the sponsor IAW normal procedures and must include the approved disclaimer. 2.5.3. Sponsor products/services may be sold in DeCA, AAFES, or other authorized resale locations. However, agreements for resale in locations other than those belonging to FSS MWR facilities must be made separate from a CSA.

2.6. Event Displays and Booths

2.6.1. The Air Force permits passive displays of sponsor‟s product and sampling in booths and designated locations as a benefit of sponsorship. Sponsors may demonstrate and explain their products, but selling is not authorized. The sponsor bears the cost of displays and booth activities. 2.6.2. MAJCOM/A1S may authorize active displays of sponsors‟ products, such as test drives of cars or demonstrations of exercise equipment, etc. 2.6.3. Sponsors may distribute information, product samples (except alcoholic beverages), and promotional giveaways valued at less than $20 each. The sponsor must officially transfer samples worth $20 or more to a NAFI, which can distribute them. 2.6.4. Signing up for additional information on a product or service for purchase consideration is permitted with an opt-in or out option is included. 2.6.5. Disclaimers are not required on items that do not reference the event or DoD elements; however, a prominently displayed disclaimer is required on the sponsor booth/area. Items that include any reference to the event and/or DoD are required to have a disclaimer or be prepared in a way that is clear from the wording that the sponsor has provided the items for congratulatory purposes. 2.6.6. Distribution of promotional materials as a benefit of sponsorship is not to be confused with commercial advertising brochures which may be made available by commercial vendors for casual pick-up at certain on-installation locations designated by the installation commander per DoDI 1344.07, Personal Commercial Solicitation on DoD Installations. FSS is not the OPR for requests to distribute. Requests to distribute will be directed through the MSG Commander to the Installation Commander. 2.6.7. Hospitality tents whereby a commercial concern, group, or individual may entertain select guests cannot be provided as a sponsor benefit; however, a sponsor may rent a tent, if reasonably available, IAW the provisions outlined in AFI 10-1004. 2.6.8. FSS MWR staff may sell sponsor products if they are provided as part of a sponsorship agreement connected with the event and the products involved are those the FSS MWR activity or program would normally sell (e.g., beverages, snacks, etc.).

2.7 Prize Registration:

2.7.1. Sponsors may conduct registration for a prize drawing valued at less than $20 at their booth. Prizes valued at more than $20 must be accepted and distributed by the appropriate MWR NAFI to the winner vs. FSS. Signing up for drawings that capture personal information must include an opt-out option. If the registrant elects to "opt-out," the individual must still be eligible for the prize. 2.7.2. Air Force personnel must refrain from actions or statements appearing to endorse the sponsor or the product demonstrated, displayed, or won as a prize. Limited ceremonial sponsor recognition by commanders and their representatives is permitted. Ceremonial recognition is verbal acknowledgment of sponsor support at the event involved. Sponsors may participate in ribbon cutting or prize awarding activities and pictures. 2.7.3. When the FSS MWR NAFI awards a prize, the recipient must sign for the item and provide their name, address, and social security number (SSN) for Internal Revenue Service (IRS) purposes. Information such as name, address, and SSN is Personally Identifiable Information (PII). When PII is requested, a Privacy Act Statement must be provided IAW AFI 33-332, Privacy Act Program. Additionally, the FSS representative will inform the recipient he/she will get an IRS Form 1099-Misc. for the fair market value of the item if total receipts from the NAFI equal or exceed current IRS limits for the year. Activities forward signed receipts, with the above information, to the NAF Accounting Office. SSNs are personal and unique to each individual. Protect them as FOR OFFICIAL USE ONLY (FOUO). See Training Aid NA-41, Commercial Sp

2.13.1. Media Agreements

A commercial sponsorship agreement which includes sponsorprovided electronic or print ads informing the public of an event open to the public may be approved at the installation PA and commander level. Media coverage will be outlined in sufficient detail for the approval authority to know the nature and appropriateness of the media coverage. The media outline will be attached to the sponsor agreement when it is presented for approval. A radio or TV station may do a series of live spots such as onsite interviews or brief vignettes from the event for the sole purpose of informing the public; such spots do not require broadcast rights.

2.15.3. Acknowledgement of donations is limited to one-time:

Acknowledgement of donations is limited to one-time: mention in the appropriate base media, verbal thank you at the event, mention in event program, and/or a "donated by" name plate if applicable.

2.16.4. Advertising for open events will be funded with APFs

Advertising for open events will be funded with APFs IAW AFI 65-106, Appropriated Fund Support of MWR and NAFIs. However, NAFs may be used in cases when a bona fide MWR event has been opened to the public per appropriate procedures, where the advertising is purchased to increase overall attendance and can help preclude a financial loss to the specific FSS (MWR) activity conducting the event. In-kind advertising and funds designated for advertising provided under the commercial sponsorship policy may be used.

2.16.1. MWR activity, event, and program advertising

Advertising is allowed in appropriate civilian media when events are open to the public as authorized in AFI 34-262, and they foster good community relations. Examples include, but are not limited to, concerts, athletic events, volksmarches, competitive runs, and those associated with American historical or traditional military events.

2.13.2. Agreements concerning television and radio broadcast rights

Agreements concerning television and radio broadcast rights to MWR events, and pre-event publicity related thereto, must be coordinated with the Secretary of the Air Force Office of Public Affairs (SAF/PA) through appropriate installation/MAJCOM/A1S and PA channels.

2.16.

Authority to Advertise.

2.1.1. The FSS generates awareness of commercial sponsorship opportunities for MWR activities, events, and programs.

Awareness includes brochures, leaflets, ads in newspapers and trade publications, sponsorship content on web sites, or issuing public affairs-like news releases about the existence and availability of the program. Letters of a strictly nonspecific nature may also be sent to businesses as additional awareness to general advertisements.

2.2.5. Agreement Procedures:

Commercial sponsorship manager/coordinator prepares a CSA according to the agreed upon negotiated details using the approved template

2.1.1.1. Commercial sponsorship program materials:

Commercial sponsorship program materials may highlight the overall MWR program or identify general activities such as bowling, golf, youth programs, and carnivals.

2.19.4. Continue reporting when

Continue reporting when MINIMIZE conditions exist.

2.19.2.1. Divide categories of support

Divide categories of support (cash, merchandise or in-kind services) into budget off-set and/or event enhancements. Event enhancements are items that were not budgeted for in the event plan. Summarize all support in the "Notes" section. Use the gifts and donations block to record tickets, cash and gifts, or services offered to the NAFI and accepted through the formal donation acceptance process.

2.15

Donations

2.15.2. Donations may never

Donations may never be solicited.

2.15.1. Donations offered to the NAFI

Donations offered to the NAFI may be accepted in support of bona fide MWR activity, events and programs IAW AFI 34-201. Approved templates are in Attachment 4.

2.2.4. Responses to Solicitations:

Evaluate prospective sponsors' proposals on a best-value basis. 1. Offers from alcohol and defense contractors are evaluated along with other responses to a solicitation and may be accepted as unsolicited offers. 2. Companies which solely manufacture or distribute alcoholic beverages or related products must certify in the CSA that they have sponsored similar events in a civilian community

2.9.2. Exclusivity also applies to...

Exclusivity also applies to certain commercial concerns which have current business arrangements with AAFES and/or FSS or other Air Force entities. Commercial concerns include, but are not limited to, contracted banks and credit unions, academic institutions, telecommunication companies such as: Internet Service Providers (ISPs), cable companies, cell phone providers, phone cards, and leisure travel services. Exclusivity also applies to companies with products in the AFSVA Essential Products Program, e.g., coffee, various paper products, etc. Check with installation APF and NAF contracting and with AAFES to identify any conflicts of interest with sponsorship proposals from these categories of companies/products prior to drawing up a CSA. In any case where doubt exists, forward proposals through MAJCOM/A1S to AFSVA/SVK for guidance.

2.1.2. General information on programs

General information on programs may be provided in installation overview briefings and reports to noncommercial elements of the civilian community (e.g., Chambers of Commerce, civic, and similar private organizations) covering a general range of installation functions, programs, accomplishments, etc.

2.3.3. Public Address Recognition of Sponsors.

If public address sponsor identifications are provided at an event, there must be at least one prominent verbal disclaimer, or there must be prominently displayed disclaimers or printed event handouts with disclaimers.

2.1.3. Agreement Procedures

Initial proposals are submitted by potential sponsors.

2.5

Installation Exchange and DeCA Promotions.

2.18. Reprisal.

Installation commanders ensure commercial concerns which do not sponsor an event are not treated with disfavor and suffer no form of reprisal.

2.9.1.2.

Is beneficial to both parties in an unsolicited sponsorship.

2.9.1.1

Is consistent with the solicitation issued.

2.3.4.4. IAW AFI 33-129, Web Management and Internet Use, commercial sponsors may be recognized on NAF funded web sites.

Limit recognition to page promoting event and a sponsorship opportunities page. Use the approved exit notice when linking to a sponsor‟s site, "The appearance of hyperlinks does not constitute endorsement by the U.S. Air Force or the information, products, or services contained therein. For other than authorized activities such as military exchanges and morale, welfare and recreation web sites, the U.S. Air Force does not exercise any editorial control over the information you may find at these locations. Such links provided are consistent with the stated purpose of this DoD web site."

2.16.2. MWR activities will coordinate their intent to advertise

MWR activities will coordinate their intent to advertise with the installation PA Office prior to making any commitments with proposed media.

2.13.3. Coordinating assignment or sale

MWR programs must coordinate the assignment or sale of television, movie, video, or radio rights with the Assistant Secretary of Defense for Public Affairs (OASD/PA) for inter-service events and SAF/PA for Air Force events. Submit requests through AFSVA/CC.

2.19.1. Maintain sponsorship contracts

Maintain sponsorship contracts for one year or until no longer needed for administrative, legal, audit, or other operational purposes.

2.3.4.2. Sponsorship recognition is limited to the sponsor‟s name, logo, and/or a brief slogan.

Materials may be displayed in appropriate FSS facilities. Materials may also be displayed in AAFES, Defense Commissary Agency (DeCA), and other appropriate on installation locations with the approval and coordination of AAFES, DeCA, or other appropriate officials. The display time for such materials is determined by the length of the event, program, or activity, the value of sponsorship, and the judgment of the entities.

2.1.1.2. Materials may not refer to:

Materials may not refer to specific shows, events, or dates other than to depict examples of previous events. If examples include previous sponsors, written permission from the sponsor must be obtained and disclaimer included.

2.1.1.3. Materials may not solicit ___________, identify __________, or mention desired ____________.

Materials may not solicit sponsors, identify needs, or mention desired dollar amounts.

2.13

Media

2.13.4. OASD/PA approval

OASD/PA approval is required when a sponsor wants to record or broadcast an MWR event for its entertainment value. Examples would be the Air Force Boxing competition or a Tops In Blue performance being broadcast in contrast to normal media coverage of a newsworthy event. If a sponsor or station wants to record or broadcast the event for the entertainment value (and possibly profit from the broadcast of the event), then broadcast rights must be obtained as outlined.

2.16.3. Open events must be infrequent

Open events must be infrequent (e.g., not weekly or monthly), and shall not directly compete with similar events offered in the local civilian community. However, FSS may permit advertising of an activity or program in civilian media when the activity is authorized as open to the general public with the concurrence of the local community as authorized in DoDI 1015.10, Military MWR Programs, Enclosures 2, 3, and 4. Advertising for open, continuous, or on-going activities like league bowling or daily golf will not have any pricing references to avoid any repercussions for civilian entities‟ perception of market competition. Advertising of one-time events like concerts, competitive runs, a single golf tournament, etc., may include admission, attendance, or participation fees as appropriate.

2.3.4.1. All sponsor recognition must be tied to an MWR activity, event, or program.

Post-event recognition will be limited to "Thank you for your support" in ads, monthly publications, web sites, etc. Recognition for sponsors at places, times, unrelated to the activity, event, or program is prohibited.

2.7

Prize Registration

2.14. Determining Sponsorship Values

Provide benefits to a sponsor commensurate with the budget off-set or enhancement provided to the MWRF (i.e., assess the value of in-kind advertising by standard rate tables and a hole-in-one prize equal to the cost of hole-in-one insurance).

2.16.5. Purchase of advertising

Purchase of advertising will be accomplished in compliance with AFMAN 64-302, Nonappropriated Fund Contracting Procedures.

2.3.4. Sponsorship Recognition

Recognition in FSS Promotional Materials/Mediums.

2.19.

Record Keeping and Reporting.

2.19.3. Reporting is due quarterly

Reporting is due quarterly on the calendar year. Installation commercial sponsorship program managers enter records for review by appropriate MAJCOM or higher headquarters. MAJCOM program manager may impose earlier reporting deadlines to allow for review and approval.

2.16.4.1. Resale activities, including exchange operations

Resale activities, including exchange operations, will not advertise merchandise or sell state tax-free tobacco products and beverages during these events except for on premises consumption. The sale of incidental items such as refreshments, hats, T-shirts, or installation memorabilia at open events is permitted.

2.2.2.3. Solicitation announcements for multiple events

Solicitation announcements for multiple events are permitted providing all individual solicitation packages are reviewed and approved by designated individuals. Announcements for multiple events must communicate that separate offers are required for each event.

2.2.2.1. Solicitation announcements

Solicitation announcements must include the following statement: "This is a solicitation for commercial sponsorship by a Nonappropriated Fund Instrumentality of the United States Government. It does not obligate appropriated funds or nonappropriated funds of the Government."

2.2.3. What solicitation packages include:

Solicitation packages will include: a cover letter stating objective synopsis of the enclosed information, an executive summary detailing the base mission, population, and economic impact, an activity, event or program overview, sponsorship benefits, sponsorship sought, sponsorship rate associated with providing needs, point of contact information, deadline(s) for response, and a blank CSA.

2.2.1. Solicitation Process

Solicitation results from the development of a sponsorship support plan. The plan includes the enhancements or expenses being sought to support the activity, event or program, a promotional plan indicating recognition of sponsors, a list of prospective sponsors, and where the solicitation announcement will be placed.

2.2.2. Solicitation Announcement

Solicitations are part of the procurement process, and must be done competitively and sent to the maximum number of potential sponsors in a specific product category (except alcohol related companies or defense contractors) after an initial solicitation announcement has been made. Take reasonable steps to inform the maximum number of potential sponsors by announcing solicitations in one or more of the following: Fed Biz Opps, http://www.fedbizopps.gov, local newspapers, Chamber of Commerce newsletters, or other appropriate business community publications.

2.3

Sponsorship Privileges.

2.2.2.2. Sponsorship may not be solicited from

Sponsorship may not be solicited from alcohol companies, or military systems divisions of defense contractors; however, unsolicited sponsorship from them may be accepted when approved at the discretion of the commanding authority (i.e., the commanding authority at the installation would be the installation commander, at Joint Base it would be the Joint Base Commander, at a MAJCOM it would be the MAJCOM commander, etc.).

2.1.2.1. Sponsorship representatives attending trade shows

Sponsorship representatives attending trade shows may use general displays and distribute nonspecific guides and fact sheets to participants and potential sponsors.

2.19.2. The audit trail for reporting

The audit trail for reporting all commercial sponsorship, donations to the NAFI and sale of advertising is accomplished in the Commercial Sponsorship Management Software (CSMS) on the Services Agency Information System (SAIS).

2.11. Certification.

The sponsor must certify, as stated in the CSA, that it will not charge any part of the Federal Government for its costs of providing sponsorship.

2.2. Solicited Commercial Sponsorship Program

This program is the responsibility of the Commercial Sponsorship Program manager/coordinator. The program is the only authorized process for soliciting support for approved activities, programs or events that can be defined as MWR elements of an FSS. The principles of Government Standards apply to commercial sponsorship. Any actions that create the appearance of soliciting gratuities for personal benefit, or obtaining commercial sponsorship from DoD contractors as a condition of doing business, must be avoided. Sponsorship agreements may not include any form of rebate, percentages of sales, or sales increases. Sponsorship based on an amount of sponsor products sold cannot be accepted.

2.3.2. Individual Acts

Titles of individual acts in an entertainment program may name a sponsor (e.g., you may list: "ABC Music Presents Dancing with Rhythm") as a segment of a larger event.

2.1. Unsolicited Commercial Sponsorship

Unsolicited commercial sponsorship offers must be entirely initiated by the prospective sponsors or their representatives. Air Force personnel will not provide information about specific needs of the FSS MWR program to "encourage" offers.

2.8. Sports Uniforms

When official sports team uniforms are provided as the result of a commercial sponsorship agreement and identifies the Air Force, a specific activity, event, or program, they may also identify the sponsor or its products with one of the following provisions: An announcer must read the official disclaimer to the audience at least once during any sporting event where the players wear such uniforms, or the activity must prominently post the disclaimer on conspicuous signs or include it on printed handouts, or the uniform must be printed with a message such as, "XYZ Salutes Air Force Sports." Conversely, "XYZ Military Team" would not be acceptable.

2.3.4.3. Sponsors may provide event posters and banners identifying the sponsor or its products or services.

While all commercial sponsorship signs, banners, etc., must contain disclaimers, normal concession type stands and distribution equipment used by the commercial sponsor do not need disclaimers when they identify the sponsor or its products (e.g., "Brand X Cola") on the dispenser for cola products.

2.4. Merchandising and Promotions

With the advance written approval of the installation commander, sponsors providing support for an MWR event open to the general public IAW AFI 34-262 may place materials promoting the event and recognizing their sponsorship in local civilian retail outlets or in the local media. Promotional materials and/or displays must include prominent disclaimers. The written approval must: