The best way to add money to the bottom line of your fundraising event is through corporate sponsors.
It’s simple really: The more sponsors you have, the more money you’ll net.
You’ll also gain credibility as you promote your event because often the names of the businesses alone brings validity.
Having sponsors means the difference in an event that generates okay results and one that blows through your goals.
Unfortunately, most small nonprofits aren’t good at getting sponsors. They either
- Don’t have a well-thought-out sponsor invitation
- Don’t start early enough to seek out sponsors
- Don’t approach the right businesses
The good news is that it’s all fixable. ANY small nonprofit can build up sponsors for their event. It might take a couple of years, but it’s doable.
Let’s explore what makes a good sponsor and where to find them.
What is a corporate sponsor?
Before we go much further, let’s be clear about a corporate sponsor is.
A sponsor for a fundraising event:
- Is usually a business or corporation giving money in exchange for publicity and good will.
- Gets their name and/or logo on event materials and signage.
- Pays for their sponsorship out of the marketing budget, philanthropy budget, or general profit of the business.
The best sponsors have a mission or values that align with the nonprofit’s mission and values. For example, a food bank might have a grocery store chain as the main sponsor of their event. Or they might recruit a company owned by someone who is one of their best donors.
From the business’ point of view, the fundraising event they’re considering sponsoring needs to be one that gets them in front of their target audience or at least gets them publicity or awareness that will support their sales.
Who makes a good corporate sponsor? Usually it’s a company with
- A good brand and recognition in the community
- Interest in supporting the community
- A desire to support your nonprofit
The best sponsors will not only give you money but are bought into the success of the event. They’ll help you promote the event, show up to fill their seats, and genuinely enjoy the event.
Where do you find sponsors?
Finding sponsors requires a little art and a little science.
There are some definite “how to” steps you can follow, but it’s also about uncovering the specific company’s needs and expectations from their sponsor experience.
Keep your donor radar on as you talk with sponsor prospects to find out what’s most important to them. You can tweak your sponsor invitation on the fly if needed.
Before you approach anyone about a sponsorship, put a few things in place. It will make you appear organized which builds trust with your prospects.
What you need before you go after sponsors:
- Sponsor packet or invitation detailing levels and benefits. This document, whether shared in print or electronic form, needs to look polished and be easy to glance through. It’s worth spending a little extra time and money to get the copy and design right. How it looks will have a big impact on the potential sponsor’s impression of you and your event.
- Event Committee members willing to go after sponsors. You won’t be able to get all the sponsors you need on your own. Many nonprofits expect their Board members to help get sponsors and while some can, most won’t which can leave you frustrated and doing most of the heavy lifting yourself. Instead of depending on your Board, create an event committee with the sole purpose of planning and executing the fundraising event. Recruit people for the committee who have business connections in the community and most importantly, are WILLING to ask their contacts for a sponsorship for the event. This relationship will be critical in getting a “Yes.”
- Acknowledgement plan for sponsors. Be ready with an immediate thank-you letter when businesses commit to sponsoring, have a process to gather their logo and other info you need from them, and circle back to them after the event to thank them again and let them know how much was raised.
Once you have your materials ready, it’s time to make a list of sponsor prospects.
Don’t get a list from the local chamber or business association and send everyone a letter asking for a sponsorship. It doesn’t work because there’s no relationship and the business has no idea who you are or if you’re legit.
Instead, try these:
- Gather a list of prospects with contact info from last year’s event. This seems like a DUH, but I’m stunned at the number of nonprofits who don’t do this, so I’m including it in my recommendations. If you gave last year’s sponsors a good experience, it should be easy to renew them and maybe even upgrade them.
- Next, have your event committee members make a list of businesses they have connections with. Personal contacts are CRITICAL in securing sponsorships.
- Ask your staff, volunteers, and Board who they know at local businesses. You may have to jog their memory to help them remember that they know the manager at their dry cleaners or their cousin is the HR manager at the local plant or that their kids play soccer with the children of the owner of the big advertising company in town. A “sphere of influence” exercise can be really helpful.
- Look through your donor database. What companies are already supporting you and might be interested in sponsoring? Maybe they made a small donation last holiday season or sent a team of employees to volunteer with you last summer.
- Look through your payables for sponsor prospects. Who are you spending money with? Consider all vendors as sponsor prospects. Reach out to them and remind them how much money you spend with them during the year and ask them to support your event in return.
- Finally, look around the community for companies that have a mission that’s in alignment with yours. Then ask around to see if anyone knows anyone on the inside. Remember that a connection is key to getting the sponsor.
Tips for getting new sponsors:
- Always get a champion inside the company. You need an employee of the company you want to approach to be an advocate for your request. They will know who the decision makers are, what the process is, when decisions are made, and how to get your sponsor request shepherded through the process.
- Start early. Some companies need a lot of lead time to get approval or work it into their budget. That means you may need to ask as much as a year in advance depending on the process for a particular company.
- Get creative in benefits. The more you know what your prospect wants, the more creative you can get in offering them something that meets their needs.
- Know your numbers. Be ready to share a few key numbers about how many impressions your sponsor will get through your event, event promotion, your website, etc. If you can share the monetary value of those, even better.
- Get media sponsors. Approach local TV, radio, and newspaper outlets to be media sponsors for your event. Basically, you’re asking them to promote the event to their audience at no cost to you. Ask your media sponsors for their promotion plan as early as possible. They should be able to tell you how often they’ll share and when and what an advertiser would pay for those same spots. Share this info with your corporate sponsor prospects to let them know they’ll be part of a “$X,000 media campaign.”
- Have a signup form. As part of your sponsor invitation, have a form for your contact to fill out so you have their commitment in writing. And remember, they’re not a sponsor until you receive payment.
- Be ready to accept in-kind sponsors. You’ll run across a few companies that want to give you products or services instead of money. For example, your local print shop might offer to donate all printing for the event (tickets, programs, posters, banners, etc.). Ask them to estimate the cost of all materials then include them in your sponsor lineup. After all, they just saved you from spending a bunch of money which adds to the bottom line just as well as a sponsor that gives you cash.
The bottom line
The best way to get corporate sponsors is to make your event and sponsor experience worthy of their investment. Click To Tweet
Sponsors can quickly increase the total revenue generated by your fundraising event. Not every company is a good sponsor prospect and strategically choosing sponsor prospects based on connections you have makes your chances of success increase dramatically.
Hey SmartSprout members! I’ll be sharing some examples of corporate sponsor invitations in the private Facebook group this week, so keep your eyes open.
Not a member of Project SmartSprout? Join us for $30 for your first 30 days. www.ProjectSmartSprout.com