Arts and cultural sponsorship is influenced by economic, social, artistic, technological, as well as (cultural) political developments. As a communication tool, it interacts with other media and instruments of marketing and corporate communication, particularly in light of the ever-evolving opportunities for activating sponsorship engagements. This results in arts and cultural sponsorship being in a state of continuous, dynamic development, which repeatedly gives rise to opportunities and risks, as well as the necessity for a deliberate design of sponsorship management. This chapter discusses developments in arts and cultural sponsorship from the perspective of sponsors, cooperating cultural institutions as sponsored parties, and cultural policy.