Where non-profit and for-profit meet
A corporate sponsorship is a form of support nonprofits receive from corporations for an event or other project. The benefits are twofold: nonprofits receive the help they need to continue serving their missions, while the company receives tax deductions and a positive boost in their brand. Corporate sponsorships can take many forms.
Corporate sponsorships benefit both companies and nonprofits.
For nonprofits specifically, these benefits include:
Benefits for companies include:
Here are a few examples of the most common types:
Financial
This is when a company donates money to sponsor an event or program. Generally, financial sponsorships consist of the nonprofits recognizing the company throughout various event materials, such as signage, merchandise, and online advertising.
In-Kind
An in-kind sponsorship involves a company donating goods or services to an event or project. For example, a restaurant might provide catering services, or a spa may donate free spa packages as a raffle prize.
Media
Media sponsorships consist of a company paying for the cost of promoting the event. This could include radio promotions, TV ads, or printed advertisements.
Corporate/Employee Giving
Beyond these typical corporate sponsorships, there are other forms of corporate giving that can help your nonprofit. These include automatic payroll deductions, volunteer programs, and corporate matching gifts.
It’s important for NGOs and corporations to find the right partner who share common values and to establish a connection with. From there, you’ll be on your way together to securing more support for the cause.
For example, consider these characteristics:
Local Businesses
Businesses in the immediate area of the NGO are likely to see the value in sponsoring an event in their own community, which can have a huge impact on their decision to partner with you.
Shared Values
A corporate partner should align with the NGO project. This means if an NGO is an environmental organization, they should be working with a corporation that values sustainability, environmental conservation, and other related issues. Otherwise, the NGO could end up losing credibility if they partner with a corporation that does substantial harm to the environment.
Knowing what businesses can motivate to become involved with charities, can help you plan your approach to them. There are many business benefits of sponsorship, but here are the most common:
Nonprofits have to show genuine interest in working with a sponsor because they know the partnership will benefit both organizations. They also need the conviction that they have a substantial marketing investment to offer the sponsor. Experience learns: It’s not enough to sell your mission to a corporation. Nonprofits should price their proposals on their promotional value. Sponsors must be able to see the commercial opportunities of an event, cause, or organization.
Perhaps the biggest advantage given to businesses to sponsor charitable organizations is the increased visibility gained throughout the community. In exchange for a financial donation, a corporation’s name and logo are included on all mailings, advertisement and other promotional material produced by the nonprofit.
The increase visibility of a company’s name and logo leads to increased brand recognition throughout the community. An easily recognized brand makes closing sales all the more effortless. Increased sales equals increased revenue.
When a business donates to worthy (local) causes, such as those that fight poverty or disease, its image is often enhanced in the public’s perception. No longer considered as simply a profit seeking corporation, a business’ investment in the community signals a commitment and concern for its neighbors.
Interested? Call us for more information.
