Corporate Sponsorship for Nonprofits: Benefits, Preparation, and Retention
At first glance, corporate sponsorship for nonprofits might seem like a daunting task – but what if one partnership could open doors that you never anticipated? But first, let’s back up. What is corporate sponsorship for nonprofits? At the heart of it, it’s a partnership where a for-profit company provides financial support, in-kind resources, and/or volunteers to a nonprofit. In return, the for-profit gains brand visibility, a reputation boost, and a stronger connection to their community. When done right, both organizations are sure to benefit. Today, let’s break down the most important pieces of corporate sponsorship for nonprofits, along with how you can find corporate sponsors.
What Can Corporate Sponsorship Do For My Nonprofit?
Obviously, a key benefit is your nonprofit getting funding to fuel your mission. A partnership with a for-profit can breathe life into a nonprofit or charitable program that is just starting out. But your partnership isn’t limited to just funding. A corporate sponsorship can provide your organization with volunteers for events or help with your programs. They can also run in-kind donation drives for canned goods, toys, clothing – the possibilities are endless.
Who better to introduce you to other corporate sponsors and other nonprofits pursuing the same mission than a well-connected company in your community? Networking is such an important resource in the nonprofit space. Once the ball is rolling, other companies recognize the great work that your organization is doing, and doors continue to open to further partnerships. A little bit of credibility can go a long way in a strong partnership with an established company.
Benefits for Nonprofits
- Funding to fuel your mission
- Volunteers
- In-kind donation drives
- Networking and connections to further partnerships
How Corporate Sponsorship Benefits The Business Too
It might surprise you to know that corporate sponsorship benefits the company almost as much as it benefits the nonprofit. We know that a for-profit provides funding, resources, and services to your organization, but what do they get out of it? For-profits can gain honest exposure to new audiences, especially ones that care about your cause. When a company aligns with a nonprofit, it shows people that they are more than just a business. It humanizes the organization and lets them wear their heart on their sleeve. With all companies and organizations, good PR is an attractive thing to have, for both customers and their own employees. We all know that we would love to work for and support a company that we see our morals and values reflected in. A company will use this relationship with nonprofits for a boost in a little good PR. This is often known as cause based marketing. A study from researchers at the Journal of Business Ethics found, employees were happier when given the opportunity to volunteer with charitable causes their companies supported. You never know, you may end up being the organization that those employees are proud to see their company sponsor.
Benefits for For-Profits
- Exposure to new audiences and clients
- Good PR for company
- Increased employee satisfaction
What You Need to Prepare For a Potential Sponsor
Before you jump the gun seeking out a sponsor, there is a bit of planning that you need to do to help your organization be successful in your pursuit. First, ask yourself: what are the most important things about my organization that a sponsor would want to know? What gets me out of bed in the morning with the work that I am doing? It would be easy to share everything that came to our mind about our nonprofit and the work we do, but a potential sponsor may need to see the information framed a bit differently. Here are five questions to guide you in preparing to ask for a corporate sponsorship for nonprofits:
Your Mission: What problem is your nonprofit looking to solve? Why does it matter?
A sponsor will want to learn about the mission of your nonprofit, how they are able to relate to your organization, and if the work you do supports something that they are passionate about. Share not just what your mission is, why is your mission important in your community? Having a clearly defined mission can give you direction and a sense of purpose, not only for your organization but those who want to work with you. Show them how you are a part of a solution to a greater issue within your community. They will want to know why they should support this cause, and if there is an interest, how they are able to be a part of the solution. If your organization focuses on combating food insecurity in your community, share a statistic about the percentage of families that experience this. If one in five families experience food insecurity in your community, a sponsor will most likely know a family close to them who is struggling. Making this personal connection related to why your mission is important will help the sponsor to understand.
Your Programs: What are you doing to tackle the problem?
Each organization approaches the problems in their community differently. A potential sponsor will want to know how your organization operates and takes on these needs. With each approach from a charitable program being a bit different, you have some questions to ask yourself.
- Who do we serve and why do we serve them?
- How often?
- What services do we offer to address this issue?
- Are we addressing the outcome or the cause of the issue?
Compare the work that your organization does to work of other organizations who serve the same cause. This is how you will set yourself apart from other organizations in their approach to tackling the problem you focus on.
Your Impact: How does the work of your organization impact your community? What tangible results can you point to?
You have to assume that the organization is unfamiliar with the work that your charitable program does. Look at the work that you do and how this benefits your community. A company will want to see the real world impact that your organization has on your community. Statistics and progress reports of your charitable program are great pieces of information to share to reflect who you have helped, how your organization has helped, and the outcomes of the work that you have done. If your organization operates a food bank, how many families have you assisted with food insecurity in your community? If your organization operates an animal shelter, how many animals have you sheltered and removed from the streets of your community? The results that have fostered a positive impact in your community are the key points to share. Share a story about a family your foodbank has helped or how you have significantly impacted their lives. You are able to demonstrate the impact that you have on your community through these examples. Stats are great, but stories make it real and leave a lasting impression.
Their Potential Impact: What do you hope to accomplish with the support of their company? How will their resources be utilized?
How their resources would be utilized by your organization to further your mission is a great segway into what you hope to accomplish in the future with the support of their company. You’ll want to be sure to have a clearly outlined plan of how services can be improved and what important resources that your organization needs to get there. It could be something as simple as volunteers from their company for an event that you are hosting to bring awareness to an issue in your community, or it could be financial support to fund a new initiative to expand services that can be improved upon. A company won’t want to see their time and resources be wasted, and your organization will want to make the most of what is provided. A corporate sponsor will want to feel like they’re a part of the solution. Putting yourself in their shoes to understand, what can you say that will show them the true impact they will have on your organization and their community? Focus on the realistic expectations of your work with their support. Figure out how many families will you be able to assist with the resources you are provided or how many children won’t have to go to bed hungry – share this with them.
Their Potential Benefits: How does their company benefit and what do they potentially gain?
Being transparent and just having a conversation can take you further than a presentation that is set in stone. Through conversation you’re able to highlight how their company can benefit and what they can potentially gain from this partnership with your charitable program. Recognizing the value of your organization and mission can garner interest with potential corporate sponsors. Are there people your organization reaches that could become customers of their business? Why should they sponsor your nonprofit rather than another nonprofit? Think of the population you serve. This could be a new audience that this company hasn’t worked with before, or people who aren’t familiar with their products or services. These are all people that a sponsor would be able to sell to. Learn about the volunteering opportunities that their employees have available to them and how your organization stands out compared to others. Your organization is regarded highly within your community, their company can benefit from a partnership and get their name out there while publicly supporting your charitable mission. Supporting your fundraiser or community events is a marketing benefit to them. In the future this may lead you to more sponsors who have recognized the great work that you have done with the support of their company and the resources provided. The more support that you have in the community, the more eyes on your organization. More publicity associated with your organization will be more publicity and brand recognition for potential sponsors to tap into while supporting a charitable cause like yours.
Connecting based on shared values or missions as human beings, more than just as two organizations, allows for a more thoughtful conversation about how you can both improve your community. Try to avoid the mindset of this interaction being solely transactional. You’re able to develop a potential long-term relationship with a company who is just as passionate about your mission as you are.
Information to Prepare
- Outline your mission and values as an organization, who and why do you serve your population?
- How your organization impacts your community
- What you can do with the support of their company and how will their resources be utilized
- How their organization will benefit and what they will gain from your partnership
Who Should I Talk to About a Corporate Sponsorship?
The thought has probably crossed your mind, who should I even talk to about this? The importance of networking has been previously mentioned, but again, networking. Leaning on those relationships you have with the people in your life (personal friends, professional colleagues, an old boss) can help to get your foot in the door for further discussions about corporate sponsorship for nonprofits. Social events or fundraisers hosted in your community for local businesses lets you connect with a variety of organizations that you may not have previously thought about. If you are a social butterfly, these types of events are one of the best available resources to a nonprofit organization.
Once you have honed your networking skills and built up those relationships with local companies who have shown interest in your nonprofit, who should you talk to at these organizations? Sometimes, the best way to find out is to ask whoever you may know that works there. A corporation can be made up of hundreds of employees, finding the right one to speak with can be a bit difficult to narrow down. The people who deal with corporate sponsorship for nonprofits can range anywhere from a director of development to a corporate engagement specialist or an account manager. Recognizing the positions that most often deal with these kinds of partnerships can be a challenge at first, but after doing a bit of research looking into the businesses you hope to partner with, it begins to make more sense.
Who To Talk To
- Employees of the company you want to partner with
- Directors of Development and corporate engagement specialists
- Professional colleagues and old supervisors
What To Do With This Information
Now that you have the necessary information to embark on your search for a corporate sponsorship, it’s time to put it into action. Recognize the benefit that this sponsorship will have for your organization. Know how you want to share this with your community through the volunteers you work with and the financial support you receive. Understand how this sponsorship will benefit the for-profit through new exposure to audiences and good PR. Think back to the points above on what to share with a potential sponsor. Walk through each point and answer the questions for yourself on how they fit your organization and the community that you serve. Find the right people to talk to through networking and finding the potential sponsors who align with your mission and values. Corporate sponsorship for nonprofits can be a great partnership with a for-profit organization, it may be quite a bit of work to solidify that relationship, but it is attainable.
Corporate Sponsorship Without 501c3 Status
If your charitable program is just starting out and doesn’t have 501c3 status yet, don’t worry. There is a way to get the best of both worlds: fiscal sponsorship. Fiscal Sponsorship is a legal arrangement between an established 501c3 nonprofit organization (the sponsor) and a new charitable program or project (the sponsee) that allows the established projects to incubate the new program/project. In this case, some fiscal sponsors will allow you to participate in one of these arrangements so you can still accept tax deductible donations from the company without having your own nonprofit status yet.
If you’re ready to get started accepting tax deductible donations without your own 501c3 status, apply for fiscal sponsorship today.
