As a nonprofit fundraiser, you know the value of government funding, individual donations, and grants, but another source of revenue to consider is corporate sponsorship -- an untapped revenue source for many nonprofits and service clubs.
Many nonprofits have effectively leveraged relationships with corporate sponsorships to increase revenue, further their cause or mission, and make a bigger impact.
Nonprofits, associations, and service clubs can raise more money and boost impact to support their projects and programs when they understand how corporate sponsorship works and how such support differs from what most charities know as philanthropy. When organizations and those responsible for association management know what sponsorship decision-makers want to see, they can build meaningful relationships with brands. Leaders and managers who understand how corporate sponsorship and cause marketing works will stand out and get more yeses!
There are billions of dollars available through corporate sponsorship in North America. If your organization is not tapping into this revenue source, you are missing out. Good nonprofit and service club sponsorship partners realize that sponsorship is a marketing relationship and a business deal, not a donation. Sponsorship is not the same as philanthropy. Not only is the language in sponsorship different from that of philanthropy, so is the process to secure funds. Sponsor-ready nonprofits and service clubs also know that the skills to get corporate sponsorships are different from those that work in everyday fundraising and donor contribution strategies.
Why Brands Want to Partner with Nonprofits & Service Clubs
Understanding what motivates businesses and brands to become involved and partner with nonprofits, service clubs, and charities (either as sponsors or cause marketing partners) can help your organization prepare. Your organization should create a plan to approach potential partners. There are many reasons why businesses look at sponsorship as a form of marketing, and there are many business benefits of providing sponsorship (why sponsors say yes).
Here are a few of the many reasons:
- Attracting customers to a brand
- Getting in front of new audiences and customers
- Increasing sales through audience and media exposure
- Being involved with the community and showing corporate responsibility and/or community responsibility
- Employee engagement opportunities.
How Your Nonprofit or Service Club Can Provide Value to Corporate Sponsors
Knowing how you can help a sponsor on a brand’s needs or marketing goals will help you stand out. Sponsors are looking for return on their sponsorship contribution.
Here are some tips to help your organization be the one that companies want to develop sponsorship relationships with:
- Research the companies you are interested in partnering with. Get clear on who their target audience is (when it is similar to the audience you serve, this will help). Be clear on the demographics of your audience/community. What do you know about your demographics? Do you know who engages with your cause and why?
- Ensure there is value alignment between your organization and the companies you wish to build relationships and possible sponsorship arrangements with.
- Spend time building relationships with sponsorship prospects. Relationships are critical in building effective collaborations and partnerships. Our Big Dream Primer Program provides the exact strategies to do this.
Keep watching our blogs for more tips on the process of sponsorship, how to build relationships with brands, ways to generate revenue and raise impact, and more.