Sponsorships
Sponsorship is a business relationship in which two entities exchange things of value — this value can be financial, in-kind or a benefit relative to exposure.
Sponsorship is essentially a business relationship in which two entities exchange things of value, including a public display of support. This value can be financial, in-kind or a benefit relative to visibility/exposure, publicity or market reach.
There are different types of sponsorship:
Soft Sponsorships
- Media partners: generate free editorial coverage or advertisements in exchange for free participation by media personalities or media materials promote during sponsored activity.
- Product partners: provide free product in exchange for promotion at the sponsored activity. These are sometimes given as prizes.
- It’s usually more about relationship-building.
Cost-Reducing Sponsorships
- Barter partner: sponsor helps cover a traditional expense, such as food, beverage legal advice in exchange for promotion.
- Reduced costs: provide a discount on a service in exchange for promotion at sponsored event.
Cash Sponsorships
- Title sponsors or level sponsor for event, activity, or cause.
- Provides cash to cover expenses in exchange for a level of exposure at event, project or cause.
- Creates more credibility for event
- More about corporate philanthropy goals of the giving organization: meet a certain part of their sponsorship criteria.
The work to acquire sponsorships has become a more specialized field in the area of fundraising. The competition for dollars due to many environmental factors requires non-profit organizations to come to the table ready make a case for support, and demonstrate how they can meet the needs of the sponsoring organization.
1. Set partnership objectives
- Assess your organization and its need for sponsorship
- Determine your broad parameters around collaboration – what are you willing to give, in order to get?
- Identify your guidelines for relationships with sponsors and partners – do you have any political hot spots, any organizational values that can not be compromised?
2. Identify partnering opportunities and values
- Assess what your organization or your event has that is of value to a potential sponsor. What types of “properties” – areas of work or activity where the ownership could be given to a sponsor in exchange for funds?
- The value of sponsorship is often compared to the value of traditional media buy, such as a print advertisement or a commercial.
- To build the value of a property take an inventory: how many participants will you reach? How will your event/organization be promoted? Will partnerships build additional exposure? What are the parameters around your sponsorships? What is negotiable and what is not?
- Determine the value of what “properties” you have to offer. Think like a marketer, know your assets and be prepared to explain how your “properties” or sponsorship opportunities will help achieve the sponsors’ goals.
- Develop a sponsorship package that outlines the “properties” or “levels” available for sponsorship and outline the benefits of sponsorship and return on the sponsor’s investment: promotion, advertising, recognition, participation opportunities.
3. Seek and select partners
- Research potential sponsors – check on their corporate values - identify those that are a good match for your organization. Who have they sponsored before? What target audience are they trying to reach?
- Utilize your own networks.
- Companies sponsor for a few reasons. Ensure your sponsorship opportunity is meeting one or more of these corporate needs:
*compiled from Active Network, 2014
- Be sure your request is tailored to the company’s objectives and business needs. Multiple approaches with the same information might continue to be treated as junk mail.
4. Develop and negotiate agreement
- Negotiate an agreement that covers the needs of the sponsor and the “property”.
- Sponsors may expect a few things for their sponsorship, including:
*compiled from Active Network, 2014
- Agreements need to be broad and flexible. Sponsors usually have range of things to offer and a broad agreement can cover more than just the initial offering.
- Accountabilities must be spelled out.
- Identify the expectations during and following the agreement; and identify any opportunities for future partnerships.
- Include provisions should there be disputes or a need to terminate the relationship.
5. Manage the relationship
- Once the sponsorship is approved, the organization has a responsibility to manage the relationship.
- It is now more complicated and will require some dedicated time, particularly if there is more than one sponsor. Sponsorships require accountability and some structure….even if it just ensuring that sponsors are placed on your mailing lists.
6. Monitor progress and measure success
- Monitor the delivery of promised results. Ensure concrete expectations set out in clear measurable terms. This will make progress much easier to report on.
- Promote successes publicly and thank the sponsors.
- Thank the sponsors personally and leave the door open to a longer relationship if possible.
1. There is no such thing as free money. Be prepared to promote your sponsors.
2. Sponsors don’t have to love you. They just need to see how the sponsor relationship fits with their corporate values.
3. Look for a good fit. Don’t try to make something uncomfortable work.
4. Get the whole organization behind it. You whole team needs to understand your sponsorship relationships – be aware and be supportive.
5. Avoid logoitis. If the logo garden is all you have to offer – reconsider. It’s not enough.
6. Get started early. Sponsorship relationships need time to develop.
7. Get it in writing. Agree on the details so no one is surprised or let down.
8. Aim high! It’s better to get one or two larger, meaningful sponsorships in place than lots of small ones.
9. Continue relationship building. It’s not over when you get the cheque. Ensure you give thanks and provide updates on progress during and after.
10. Learn more. Read a book about sponsorship. Attend a workshop. Start networking. There are always new things to learn in this area.
Excerpts of Steps taken from Thinking about Sponsorship, Funding Centre, 2014
Fundraising Fact Sheets: Five Steps for Sponsorship. Creative Choices. Arts & Business., 2009.
Business Sponsorship Toolkit. Business and Arts South Africa, 2016
A Corporate Sponsorship Toolbox. Canadian Heritage Partnering Framework, 2002.
Building and Attracting Event Sponsors. Active Network, 2014.
Strategies for Effective Proposal Writing, Ontario Healthy Communities Coalition, 2010
Preparing for Sponsorship. Funding Centre, Australia, 2014
