Today’s consumers are incredibly philanthropic-minded. In fact, consumers are more likely to be satisfied with a brand if they know the brand is socially oriented. This trend highlights great opportunities for nonprofits and charitable organizations, as they look to bring in more corporate sponsors.
Although most corporations know that aligning their business models with charitable causes is a good way to improve brand , securing corporate sponsorships isn’t always easy.
We’ve included actionable tips for nonprofits to make the most of their corporate sponsorship strategies. We hope you’re able to apply it to your nonprofit’s next corporate sponsor outreach!
Corporate sponsorships are a vital source of funding and support for many nonprofits. But what exactly are corporate sponsorships and how do they work? In this comprehensive guide we’ll explain what corporate sponsorships are the benefits for nonprofits, types of sponsorships, how to find sponsors, best practices for securing partnerships, and more.
What is a Corporate Sponsorship?
A corporate sponsorship is a mutually beneficial partnership between a nonprofit organization and a for-profit business The business provides cash or in-kind donations to support the nonprofit’s mission, events, projects or operations In return, the nonprofit recognizes and promotes the sponsor.
Common types of corporate sponsorships include:
- Monetary donations
- In-kind goods or services
- Employee volunteering
- Matching gift programs
- Technology tools and services
- Event sponsorships
- Cause marketing campaigns
Well-structured corporate sponsorships are a “win-win” allowing both parties to further their goals, Nonprofits gain crucial funding while businesses enhance their community engagement
The Benefits of Corporate Sponsorships for Nonprofits
Here are some of the key advantages corporate sponsorships offer nonprofits:
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Diversified funding – Sponsorships offset reliance on grants or individual donations. This makes budgets more stable during tough economic times when other sources may decline.
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Expanded reach – Corporate partners extend a nonprofit’s audience by promoting the sponsorship to their customer base.
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In-kind donations – Businesses can donate goods, services or volunteer labor, saving nonprofits substantial costs.
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Increased brand awareness – High-profile corporate partners lend credibility and boost public awareness of the nonprofit.
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Professional expertise – Businesses often advise nonprofits on finance, marketing, tech tools, management best practices and more.
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Volunteer engagement – Employee volunteer programs give nonprofits crucial people power for projects and events.
While every dollar counts, corporate sponsorships can provide significant, ongoing support once cultivated.
Types of Corporate Sponsorships for Nonprofits
Corporate sponsorships come in many forms to meet different needs. Common types include:
Monetary Donations
Businesses donate cash grants to fund specific nonprofit projects or services. They may support operations, capital campaigns or fundraising events. Sponsors are recognized through branding, signage, or other promotions.
In-Kind Donations
In-kind gifts provide goods or services a nonprofit needs. Examples include office supplies, event catering, vehicles, professional services, software or technology. These can generate substantial cost savings.
Employee Volunteering
Businesses encourage their staff to volunteer for nonprofits. Opportunities could include serving meals, staffing events, mentoring youth, building homes or other hands-on charity work.
Matching Gift Programs
Businesses match individual employee donations to amplify impact. For instance, they may donate $1 for every $1 given by staff, up to $5,000. This incentivizes increased giving.
Event Sponsorships
Businesses sponsor nonprofit fundraising events through major donations. Popular events like galas, charity races, golf tournaments or walkathons rely heavily on corporate event sponsors.
Technology Tools
Tech companies provide free or discounted access to software, apps, websites, or other tech solutions nonprofits need. This strengthens their technology infrastructure.
The options are as diverse as the needs of nonprofits and skills of business partners. Evaluating potential alignments allows highly customizable partnerships.
Finding and Evaluating Potential Corporate Sponsors
With an understanding of what sponsorships involve, where do you start? Here are tips for identifying and vetting prospective corporate partners:
Look within your existing networks – Current donors, partners, board members, volunteers and community contacts may have corporate connections suitable for sponsorships. Start with this insider channel.
Research businesses aligned to your mission – Seek companies already supporting causes related to yours as they have an interest. Review their CSR and philanthropy programs for insight.
Target companies needing PR or reaching your audience – Businesses wanting goodwill exposure or access to your member/donor base make strong prospects.
Ensure compatible values and branding – Avoid mismatched partnerships that could reflect poorly. Assess corporate reputation, management controversies, etc.
Match business strengths to your needs – A software company might provide technology tools while a caterer could supply food for an event. Seek sponsors who can meet specific needs.
Evaluate sponsorship appeal – Determine what you can offer a potential sponsor in return, like branding, media exposure, linking them to your supporter base and more.
Research decision-makers – Find the right contact whether it’s the CEO, marketing VP, community relations manager or other role overseeing charitable sponsorships.
Thoughtful prospecting, research and analysis sets up effective sponsorship requests.
How to Secure a Corporate Sponsorship
Landing a corporate sponsorship involves meticulous relationship-building. Follow these best practices:
Start with a phone call – Emails are easy to ignore. Warm contacts through introductory phone calls before sending proposals. Discuss needs, what you offer, and try to set an in-person meeting.
Meet in-person when possible – Face-to-face meetings forge stronger connections with decision-makers to convey your mission and collaborate on ideas.
Highlight shared values – Show how supporting your cause aligns with and furthers the company’s CSR and community goals for a mutually beneficial partnership.
Customize for each prospect – Tailor proposals to address that company’s particular interests, motivations and philanthropic priorities. Avoid copy-paste templates.
Convey professionalism – Have polished materials like sponsorship decks, media kits, annual reports and data demonstrating your impact.
Offer sponsor levels – Create tiers with different benefits so prospects can select what works for their budget and goals. Good, better, best options increase buy-in.
Follow up diligently – Sponsorships can take months to cultivate through ongoing nurturing. Don’t get discouraged by initial rejections. Keep following up.
With relationship-focused tenacity tailored to each potential partner, corporate sponsorships can transform nonprofits. But first deliver on your side of the bargain.
Best Practices for Managing Corporate Sponsors
Once you’ve landed a sponsorship, diligent partnership management ensures continued support. Be sure to:
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Hold kickoff meetings to align on expectations, communications plans, timelines and key contacts
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Get sponsor logos, recognition language and other brand assets to fulfill promotional obligations
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Update sponsors regularly on impact stats, success stories and ROI
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Prominently place sponsor logos and recognition on all related materials
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Amplify sponsor visibility through website highlights, social media tags and mentions
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Invite sponsor reps to attend or speak at your events, ribbon cuttings, etc.
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Send personal thank you notes and impact reports to key decision-makers
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Survey sponsors on satisfaction and gather feedback on improving future partnerships
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Start conversations early about renewal opportunities to retain support
By upholding your end of the bargain, consistently showing impact, and keeping communication open, sponsorships can continue year after year.
Key Takeaways on Corporate Sponsorships for Nonprofits
Securing corporate sponsorships involves in-depth planning, tenacious outreach and careful stewardship. Key takeaways include:
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Sponsorships provide crucial funding plus professional resources to power nonprofit missions
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Many types of donations like cash, in-kind gifts or services create customized partnerships
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Compatible values and brand images along with shared audiences make solid matches
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Handshake deals and small talk alone rarely win sponsors – have polished materials and specific asks
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Follow up relentlessly and focus on building relationships with key decision-makers
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Uphold all promotional obligations and constantly showcase sponsor impact
While sponsorships require work, their substantial benefits make them well worth the effort for most nonprofits.
Hopefully this guide provided a full understanding of what corporate sponsorships involve and how to secure them to supercharge your nonprofit. With smart planning and partnerships, you’ll be prepared to weather any funding environment.
Perfect your sponsorship letter.
Writing personal sponsorship appeals is a tried-and-true way of securing corporate partnerships. However, when so many of these letters are coming through a corporation, nonprofits must be able to get to the point quickly and build a connection between the corporation and their philanthropic cause.
Create a sponsorship letter template that allows you to make a connection between your nonprofit, their brand, and the impact their sponsorship can make. Clearly outline the tangible benefits that your partnership can provide to sponsors, and try to propose as structured a plan as possible. This will give both parties more ground on which to work out the perfect arrangement.
Try offering different incentives.
While most corporate sponsors have their own reasons for wanting to align themselves with a nonprofit cause (more on this in section 3), sometimes they need a little incentive to encourage them to take that first step.
If you’re hosting a 5K, gala, golf outing, or another type of event, offer free tickets to your sponsors. This is a classic strategy for incentivizing support, but there’s no right or wrong way to do it. Think about your mission and your prospective sponsor. What unique benefits can you offer them that will really catch their attention?
Nonprofit Fundraising: What goes in a Sponsorship package?
Can a nonprofit sponsor a company?
Corporate sponsorship can be beneficial to both companies and nonprofits. There are many types of corporate sponsorships that your nonprofit can pursue, including: In-kind sponsorship: An in-kind corporate sponsorship is a type of sponsorship in which a company donates goods or services rather than monetary donations.
What is a corporate sponsorship?
Corporate sponsorships are a great way for nonprofits to bring in additional revenue for their fundraising events and campaigns without additional overhead or costs. There are two main types of corporate sponsorships: organization sponsors and fundraising sponsors.
What is corporate sponsorship of nonprofits?
Corporate sponsorship of nonprofits is a marketing tactic that involves a mutually beneficial partnership between a company and a nonprofit organization. Corporate sponsorships can increase awareness and support for both parties.
What are the different types of corporate sponsorships?
There are two main types of corporate sponsorships: organization sponsors and fundraising sponsors. Organization sponsors support nonprofits year-round through regular giving and involvement. This includes Corporate Social Responsibility (CSR) campaigns, program sponsorships, in-kind gifts, pro-bono support, and more.
