What is an Auspice Agreement?
‘Auspice’ means to provide support, sponsorship or guidance.
Where an individual, unincorporated (or sometimes incorporated) group or association has the idea for a ‘one off’ project and partners with an existing incorporated organisation in order to carry out the project, this relationship is called auspicing. The project could be anything from a community initiative, exhibition, performance or show which the group is unable to produce without establishing their own corporation. The incorporated organisation is known as an ‘auspicor’ and the individual or group (the ‘auspicee’) is carrying out the project ‘under the auspices’ of the incorporated organisation.
Why use an Auspice Agreement?
An auspice agreement is a legally binding contract setting out the legal obligations regarding the roles and funding relations between the auspicor and auspicee. It is most commonly used where a group needs to quickly meet grant funding conditions requiring that the recipient is incorporated or is a tax concession charity. Depending on the agreement the project can also benefit from the management, infrastructure, insurance protection and resources of the auspicor.
It is important to use such an agreement as it clarifies the nature and expectations of the relationship from a legal perspective in order to ensure smooth execution of the project.
Typical Obligations in an Auspice Agreement.
An Auspicor’s primary obligations are to comply with the terms of the funding arrangement with the funding body who supplies the grant for the project. The Auspicor will often take a percentage of the grant as a fee for their role in facilitating the agreement with the auspicee. The agreement will specify how much of a role the Auspicor will have in executing the project which could range from merely liaising between the auspicee and the funding body, to providing such help as management, financial or logistical assistance or marketing and accounting services.
The Auspicee’s obligation will primarily be to ensure the execution and completion of the event or project. As the vision for the project often comes from the group or individual, they will often be the ones responsible for ensuring the artistic quality of the end result. Depending on the arrangement of the agreement, the Auspiror’s role might be limited to allocating funds while the auspicor might be responsible for everything else. The agreement might also make acknowledgments regarding any intellectual or copyright property rights created during the production of the project.
To Sum Up
It is important to speak to a lawyer before drafting an auspicing agreement as there are a number of legal issues that need to be considered.
If you have any further questions about auspicing or need assistance drafting an agreement, get in touch with our commercial lawyers. You can call us on 1300 337 997, or fill in the contact form on this page.