In addition to the information below, learn more about corporate sponsorship in another section on this site. Sponsorships refer to money paid to an organization by a corporation in return for some form of advertising, typically logo display. In order to sell sponsorships, an organization must have things that have advertising value, known as assets. Assets can be anything that can bear a company name or logo that will be seen by a large number of people. Assets include printed material such as programs, signs in prominent locations, uniforms worn by staff, media advertising, websites, or the name of a part or all of a building. Assets may be permanent, such as, signs on a building or they may be temporary, such as, banners at an event.
Many corporations recognize sponsorships as an important part of their brand management strategy. In some cases, the corporate brand is merged with the brand of a nonprofit organization or charity to create a synergy that leverages the touchpoints of both brands.
The process of selling sponsorships is somewhat different from the process of soliciting donations. The process for securing donations is based on communicating with, and establishing relationships with, people who may provide financial support because they are motivated to help the people the organization helps. Sponsorship on the other hand, is based on an organization providing and adding value to a company’s marketing efforts through brand association and exposure. Sponsorship has a multiplier effect on brand exposure. Sponsorship is basically a form of advertising and competes with other forms of advertising for a piece of the company’s marketing budget.
In order to consider sponsorship as a viable option for raising funds, an organization must determine if it has marketable assets, determine the value of those assets and develop a marketing plan to sell the assets. Before engaging in this activity, the organization must make a policy decision that permits the marketing to its assets to corporations for advertising purposes. Consideration should be given to the potential effect on donations when this decision must be made.
The funds received from sales of sponsorships go into the general revenue of the organization and can be used for any purpose the organizations sees fit. Since it is not a donation, no tax receipt is issued for the sale of a sponsorship.
Sponsorship Summary
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When to Do It
- there is no best time
- usually sponsorship is done in conjunction with events
- business climate may motivate a key sponsor
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What You Need
- businesses who want to promote their brand to your audience
- events or venues that attract a lot of people or media attention
- organization with good image
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Why You Do It
- sponsorship funds are unrestricted
- partnerships with business may produce other benefits
- attractive to some organizations IE arts and sports
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Results to Expect
- sponsorship decisions usually take six months or more
- negotiating a sponsorship contract may be difficult
- be prepared to stick to your price
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