This year, charitable organizations should consider using nonprofit software and corporate sponsorship to enhance their funding efforts. As one of Fundraising Success Magazine’s top trends of 2015, it would behoove organizations to devote time to finding a corporate sponsor and building a meaningful relationship with it.
As defined by the Council of Nonprofits, corporate sponsorship is funding given to a charity by a business to help the organization fulfill its mission. It is a mutually beneficial relationship in that after receiving financial assistance, the charity acknowledges the company publicly and thanks it for its help. This enhances the reputation of the business. Any benefit to the for-profit business shouldn’t exceed the benefit to the nonprofit.
Before embarking on corporate sponsorship, it’s worth noting that sometimes this type of partnership affects tax filings. Nonprofits should be sure to identify whether a contribution from a business will be categorized as a non-taxable charitable donation or an unrelated business income.
When deciding which sponsor to connect with, a charitable institution should consider the following factors:
Fundraising IP stated that aligning a corporation’s identity with the nonprofit’s mission is of the upmost importance. Asking Starbucks to sponsor a children’s event makes little sense. A more appropriate and successful choice would be any business that caters to kids and their development. A business like Creative Kidstuff would share the target marketing demographic with a youth event.
In addition, Fundraising Success Magazine noted that sponsorships often turn into long-term partnerships. Be sure that any business considered as a sponsor has a solid background and an interest in developing a greater connection over time.
“In order to obtain a corporate sponsor, charities need to send in proposals.”
Choose the right campaign
Rather than arbitrarily picking an event to propose to a corporate sponsor, strategically analyze all upcoming campaigns and fundraisers to see which would be most enticing to the business. It must be a large gathering from which the company would receive a lot of recognition.
Build proposal templates
In order to obtain a corporate sponsor, charities need to send in proposals. A sponsorship proposal package should include detailed information on:
- Marketing demographics and how they relate to both the charity and the business
- The benefits that come with sponsoring a nonprofit organization
- Compelling and moving account of the nonprofit’s accomplishments thus far
- Gratitude in advance of consideration and potential sponsorship
After sending a proposal for sponsorship, it’s wise to follow up within one to two weeks to make sure it was received. This is also a great opportunity to provide clarification on any aspect of the pitch. It’s possible that the contact person in charge of making sponsorship and fiscal decisions has questions about the proposal but didn’t have time to reach out for clarification. Playing a proactive role is the best way to begin a corporate partnership.
Along with a strong partnership with corporate sponsors, charities should invest in nonprofit software. A quality platform helps organizations better manage their funds, track incoming donations and stay connected to donors. Corporate sponsorship, while important and helpful, cannot sustain a charity alone. Nonprofits need an effective system for managing their donors and fulfilling their missions.