Corporate sponsorship can fundamentally transform a charity’s circumstances, offering essential financial resources to succeed and connecting it to valuable community networks. At the same time, businesses enjoy improved brand identity and enhanced employee engagement. Understanding the basics of how corporate sponsorships work, their benefits, and how to get started are critical to determining a strategy for this type of support for your charity.
In this guide, we’ll delve into the essentials of corporate sponsorships to help equip your charity with the knowledge and know-how to secure this transformative support.
What Are Corporate Sponsorships?
According to Double the Donation, corporate sponsorship is “a form of support charities receive from corporations to fund events, programmes, or specific projects.”
Corporate sponsorships can come in various forms, each offering unique opportunities for collaboration and benefits. Here are some common types of such sponsorships:
- Financial grants. Cash sponsorships can directly fund your mission or help support events. For example, a business might purchase a sponsorship for a charity golf tournament, underwriting event costs and boosting fundraising outcomes.
- In-kind donations. These are non-monetary gifts or contributions that assist your charity’s operations or support a specific initiative or event. Examples could include donated spaces for a fundraising gala, new computers or other facility resources, or prizes or catering for a charity golf tournament.
- Employee volunteering programmes. Many companies encourage employees to volunteer for charities by organising outings or providing paid volunteer time off. These programmes support your cause and engage the company’s workforce.
- Cross-marketing. This involves businesses promoting your mission through their marketing channels. For instance, a corporate partner could highlight your charity’s work or fundraising events on their social media platforms or website, reaching a broader audience.
- Employee giving. Many companies encourage employee donations to charity by offering incentives such as matching gifts or volunteer grants, which can significantly amplify individual contributions.
Why Are Corporate Sponsorships Beneficial?
The benefits are numerous, both for the charity that receives the sponsorship support and for the corporate partner themselves. Here’s why they work well for both parties:
Benefits for Charities
- Enhanced mission support. Sponsorships provide financial resources as well as expertise that can help directly advance your cause and mission fulfilment.
- Additional revenue. Sponsorships can help cover overhead costs or provide unrestricted funds, freeing up other sources of funds for mission activities.
- Expanded networks. Corporate sponsorships give your charity access to the sponsor’s networks, which opens doors to new potential supporters and donors.
Benefits for Corporations
- Increased employee engagement. Supporting a charity can provide employees with new gifting and volunteer opportunities that increase employee engagement and boost morale.
- Improved brand awareness and lift. Partnering with a charity enhances public perception of a business and builds positive connections with the community.
- Access to new audiences. When a business collaborates with a charity, it introduces the brand to potential new clients and customers that align with their values.
How Can Charities Get Started With Corporate Sponsorships?
It’s a good idea to start by building a relationship with the sponsor prior to making a formal pitch. You might arrange an informal meeting, such as a coffee chat, to build rapport and help you better understand the sponsor’s interests and motivations (both personally and professionally). A strong relationship significantly increases the likelihood of securing a sponsorship.
Next, create a custom proposal for the sponsor (and tailor it to other sponsorship requests to different businesses). Using insights from your get-to-know-each-other meeting and additional prospect research, you can craft a pitch that hits upon the company’s strengths and interests. It’s a good practice to ask for more support than you need, which leaves room for negotiation, if needed.
Your proposal should highlight the benefits of partnering with your charity. For instance, when proposing that a business sponsor a hole-in-one contest at a charity golf tournament, try to include details such as attendance figures from the last event and anticipated turnout for this year. This positions the sponsorship as a high-value opportunity to boost brand visibility and awareness.
It’s also good to come to the pitch prepared to compromise. Because every business has different strengths and capacity to enact change, you may need to educate potential partners about innovative opportunities to implement corporate social responsibility (CSR) by working with your charity. Continuing with the golf tournament example, a local sporting goods store may not have a large budget to make cash contributions, but may be willing to donate premium golf equipment, clothing, or accessories that can be used as a raffle item. Compromising lays the foundation for future support and builds a strong partnership.
Next Steps
Corporate sponsorships are mutually beneficial partnerships that can revolutionise your charity’s ability to achieve its goals. By understanding the different types of sponsorships and tailoring your approach to potential partners, you can create compelling proposals that inspire companies and corporations to join your mission.
To find potential sponsors, consider networking at local business forums, attending industry events, or leveraging online tools and directories. By taking these proactive steps, your charity will be well on its way to building meaningful and impactful corporate partnerships.
