If you’re responsible for raising money for your nonprofit organization, you might be thinking of approaching corporations for support. And it might make sense. But there are a few things you should consider before starting out.
A corporation answers to shareholders or other owners. It operates to make money for these people, and has to meet corporate objectives that generally involve influencing consumer behavior in one way or another.
The primary reason a corporation undertakes sponsorship activities is to get its name and products in front of its target audience. Oh, but it wants to look good, too! This explains why corporate sponsorship is usually considered a marketing function. And why it shouldn’t be confused with Corporate Social Responsibility, which is driven by a company’s desire to engage in ethical business practices.
Here’s an important point for cause-minded nonprofit managers: Corporate sponsorships are not about “doing good.” They’re transactions in which benefits are exchanged. The nonprofit receives money or goods to support its projects, and the corporation receives exposure among its desired audience.
Ouch. Sometimes we have to protect marketing executives from themselves.
When seeking sponsorship from a corporation for your organization or project, it’s in your best interest to help your corporate contact understand how you’ll not only showcase his company, but will generate goodwill and warm feelings at the same time. So you’ll need to be prepared to answer some of the following questions:
First, what’s in it for my company? How will sponsorship of your project help us meet our corporate objectives? And how will it create goodwill in the community?
Next, is this an opportunity for high visibility (e.g., sponsorship of a new building)? Or is it a community support project that will demonstrate what good corporate citizens we are (sponsorship of the basketball program at a neighborhood recreation center)? In the best case, it’s both.
And don’t forget to have the answers to these questions at the ready:
- Is the sponsorship exclusive? If not, how many other logos will appear next to mine?
- How many people will see my company’s name?
- What are the demographics of the audience that will be exposed to my company?
- What are the benefits I’ll receive in exchange for support?
- Will I get tickets or other items I can offer to employees or executives?
It might feel like the relationship will be a one-way street, but don’t lose sight of your ultimate goal: creating an alliance that provides something of value for both organizations.