diff --git a/apps/sponsors/models/sponsors.py b/apps/sponsors/models/sponsors.py
index a8f83ccb5..eb8b6afa2 100644
--- a/apps/sponsors/models/sponsors.py
+++ b/apps/sponsors/models/sponsors.py
@@ -96,6 +96,19 @@ def __str__(self):
         """Return string representation."""
         return f"{self.name}"
 
+    @property
+    def incorporation_location(self):
+        """Return the incorporation location for use in contracts.
+
+        For non-US companies, return the country name (preferring country of
+        incorporation over mailing country). For US companies, return the state
+        of incorporation if provided, otherwise the mailing state.
+        """
+        country = self.country_of_incorporation or self.country
+        if country and str(country) != "US":
+            return str(country.name)
+        return self.state_of_incorporation or self.state
+
     @property
     def full_address(self):
         """Return the full mailing address as a formatted string."""
diff --git a/apps/sponsors/templates/sponsors/admin/contracts/sponsorship-agreement.md b/apps/sponsors/templates/sponsors/admin/contracts/sponsorship-agreement.md
index 9e68e4d35..21a85b706 100644
--- a/apps/sponsors/templates/sponsors/admin/contracts/sponsorship-agreement.md
+++ b/apps/sponsors/templates/sponsors/admin/contracts/sponsorship-agreement.md
@@ -16,7 +16,7 @@ is entered into and made effective as of the
 by and between the **Python Software Foundation** (the **"PSF"**),
 a Delaware nonprofit corporation,
 and **{{sponsor.name|upper}}** (**"Sponsor"**),
-a {{sponsor.state}} corporation.
+a {{sponsor.incorporation_location}} corporation.
 Each of the PSF and Sponsor are hereinafter sometimes individually
 referred to as a **"Party"** and collectively as the **"Parties"**.
 
@@ -180,7 +180,7 @@ wishes to support the Programs by making a contribution to the PSF.
 
 >    **SPONSOR**:  
 >    **{{sponsor.name|upper}}**,  
->    a {{sponsor.state}} entity
+>    a {{sponsor.incorporation_location}} entity