mivox - 2:18 am on Mar 22, 2001 (gmt 0)

Ouch! Err, having never been in a position to turn down money, I'm not too familiar with the etiquette, but something along these lines, perhaps?

I've reviewed the YOURdomain.com pages. While I do not think a sponsorship would be appropriate at this time, it may be a future possibility as YOURdomain.com evolves.

I'm sure you understand that we are limited to providing sponsorship opportunities to sites and organizations of national caliber and exposure. While YOURdomain.com may be a valuable <insert local/community/or some other 'small' word here> resource, it does not currently meet our requirements for a major sponsor.

Thank you for your offer, and we look forward to working with you in the future as YOURdomain.com grows!

OTOH, you could just be totally cruel, and tell them that you can't conscionably promote a site of such low design caliber, then refer them to a reputable design firm for help. ;)