Last month's issue on how to ensure a successful sponsorship campaign was so popular that some of our readers asked for advance copies of this month's articles on the same topic! We promise it was worth the wait. This month, our contributors wrap up our sponsorship special with two articles to help you develop sponsorships for your organization and a list of the top ten reasons corporations agree to sponsor — or not sponsor — an organization. As always, please let us know what you think about this month's issue — email fundraisingwell@blackbaud.com. You have received this email because you are subscribed to Fundraising Well, a monthly newsletter about fundraising effectively in today's world. Subscription information is located at the bottom of this newsletter. |
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Editor's Note|
Don't "Give Away the Store" Perhaps the most common mistake made in a sponsorship campaign is to let ancillary expenses rise by making overly generous commitments to the sponsor. Corporate sponsors are particularly likely to suggest expenses which are covered by the sponsor's gift, but which are not part of the sponsored endeavor's regular budget. Items which the sponsor may ask for as part of its benefit package can include, but are not restricted to:
There is a tendency on the part of fundraisers to promise special considerations to sponsors. That inclination must be resisted with as much tact as possible. Out-of-pocket expenses can destroy the value of a sponsorship donation if they are allowed to get out of hand. A sponsored endeavor that does not meet the organization's or the sponsor's expectations poses another potential danger. Foundations, corporations, and individuals do not want their names associated with negative publicity. Controversial endeavors do not make good sponsorship opportunities. Be sure there is no hidden potential for controversy in those activities for which you seek sponsorship. Most Sponsorships Are Philanthropy-Driven It is important to remember that all donations, including sponsorships, are basically philanthropic in nature. What we do to recognize a sponsor's contribution is just that — recognition. Be careful how you tout "market value" of sponsorship benefits. An organization should not look at a sponsorship as a quid pro quo arrangement with each contributed dollar "buying" additional benefit for the sponsor. All but the most inexperienced sponsors know they are making a donation. Don't work so hard to convince sponsors of the value they will receive that they cease to view their sponsorship as a philanthropic endeavor. An organization mounts a sponsorship campaign in order to increase its donated income.Sponsorships are an effective way both of enlarging existing annual gifts and of drawing in new corporate donors. But there are secondary benefits, as well. One is the credibility to be gained when a company or foundation allows its name to be associated with that of the organization. This quite plainly and simply amounts to an endorsement and the bigger the company or more highly regarded the foundation, the greater the impact of that endorsement. An organization establishes a richer, more complex relationship with a donor who is also a sponsor. In the case of corporate sponsors, this often leads middle- and upper-level corporate management to deeper involvement with the organization, resulting in the expansion of its volunteer base and the development of potential leaders for its fundraising campaigns. Often, one of the benefits extended to sponsors is a reception or entertainment event. When this happens, the organization's trustees, administrators, and fundraisers have the opportunity to “rub shoulders” with corporate executives and other invited guests. It is a chance to meet some of the community's most important people. Suddenly, you are sitting at a table with the company's CEO and spouse, or the public relations VP and spouse, and that is a true networking opportunity.
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In my experience, the biggest problem fundraisers are likely to encounter with sponsorships is that there is always somebody back at the shop — a staff member or trustee — who objects (often unreasonably) to some of the benefits given in exchange for sponsorship. The impact of these objections can be diminished by having the key players clearly define in advance what courtesies and considerations will be extended to a sponsor. If a nonprofit organization earns a portion of its income, then the people running the marketing operation need to be apprised of and in agreement with just how much of what they sell is — from their point of view — going to be "given away" to a sponsor. Good relations between an organization's fundraisers and marketers are very important. They need to work together as a team to produce the income, which is their common goal.
Getting corporate sponsorship can be tough at times, but it’s a great opportunity for your organization to cultivate relationships with local businesses. While businesses have specific requirements, such as logo placement, banners, and ad space, they are also like individual donors who value things such as accountability, stewardship, and good communication. In a survey done by Pat Kahnert at PBK & Associates, a marketing and communications consultant group, corporate sponsorship decision-makers were asked to complete the sentence, “The times when I would rather not be in the position of deciding what causes our organization should support are…” Here are some of the responses:
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