People are increasingly aware of how companies they purchase from participate in corporate and social responsibility. With more than two out of five people saying they are more likely to buy from a company that gives to charity, corporate sponsorships can have a real effect on company profits.
Corporate sponsorships are gifts with monetary value from a company that are given to help a nonprofit organization further its mission. Sponsorships are a sign that the company supports the nonprofit’s mission, and sponsorships typically benefit both parties in some way.
Corporations donated an estimated $36.5B to nonprofits in 2023 in the United States, so it is also big business for nonprofit organizations. However, securing corporate sponsorships can be a challenge.
How can your organization attract and secure corporate sponsorships?
52%
of nonprofits with $11M to $50M budgets receive corporate gifts
45%
of nonprofits with $50M+ budgets receive corporate gifts
Source: The State of Nonprofit Fundraising, Technology and Operations: Impact on Mission Sustainability
6 proven tips to secure corporate sponsorships
1. Dive into your donor data
If you don’t already capture where people work, you should. Not only is a wealth of information for matching gift opportunities, but understanding where people work can help you make a focus list for your corporate reach-out.
You’ll want to segment your donors and primarily target those who might be long-time donors, major donors, or on top peer-to-peer teams. Build relationships with supporters with the companies on your focus list; make a stewardship plan that may include simple reachouts such as birthday cards or setting a Google alert to see when their company or kids’ schools are in the news (for good reasons).
You can’t cold ask people to give you thousands of dollars, but deepening relationships with a select few can make your corporate outreach strategy highly successful.
2. Tap into your network
Aside from doing research into your donor data, you should tap into your board, committees, and other high-level volunteers. Your database may not tell you where your board president’s college roommate works.
Sharing your corporate focus list with these high-level volunteers can help them make connections with their networks. You should do a relationship mapping exercise to help people really understand how their connections can springboard into corporate partners.
3. Do your research
Before seeking sponsorships, thoroughly research potential companies. Understanding any company will help you connect with its representatives, fostering strong, lasting professional relationships. Also, research the people you will be pitching to see if you can find the causes they support or personal information, like where they went to college.
Research also ensures the corporate sponsor aligns with your mission, goals, and values. For instance, an environmental nonprofit should partner with companies committed to sustainability to maintain credibility.
Start online, exploring a company’s philanthropic history to gauge interest in sponsorships. Focus on organizations with a track record of charitable giving and look for lists of companies that support nonprofits—you might discover new opportunities!
4. Perfect your pitch
Getting a sponsorship pitch meeting takes a lot of research, collaboration, volunteer involvement, and circumstance. How can you make the best presentation?
How does the company benefit?
When reaching out to potential corporate donors, be sure to share relevant information and data that will show them why a partnership with you will be beneficial.
For example, if their brand targets a specific demographic, share what percentage of your event participants are in that demographic. Or, if they’re looking for more publicity around their charitable acts, share that there will be press releases or social media updates highlighting the sponsors.
How is the company’s support crucial to your community, constituents, and mission?
Clearly explain how the company’s values align with your mission, highlighting employee and organization benefits. Share how employees can get involved and the professional or personal value they’ll gain. Discuss specific projects the sponsorship will support to help the company see the direct impact their partnership can have on your cause.
What value does the sponsorship offer?
Consider how much you should ask for, too. Setting the right sponsorship levels for your event is crucial to reaching your fundraising goal, and it can be catastrophic if you over or under-ask potential sponsors. Don’t undersell your event or organization’s value.
You’ll want to consider the size of your fundraising event. When setting your sponsorship levels, aim to raise anywhere from 30% to 50% of your total goal through sponsorships. Keeping this in mind will help you set levels that will actually help you reach your goal.
5. Get creative with activation opportunities
There are tried and true sponsorship activation opportunities, such as hole sponsors, signage sponsors, and others that align with standard event offerings. As you understand the company you’re pitching and their goals, as well as your audience, your nonprofit should consider what creative spin you can add to sponsorship activation. Creative sponsorship activations could be:
- Happy hour, dessert table, hydration station, or late-night food
- Photo booth or 360 camera booth
- Foam art printer for lattes, stouts, or cocktails
- Phone charging station
- Revenue enhancer (Heads or Tails, Diamond Raffle, or Balloon Pop)
- Wifi
- VIP lounge
- And more!
You should also make sure activation is relevant to your event and potential partner. Rather than a hole sponsor, can you level up a beauty company to be your sunblock sponsor at your next golf outing? As you finalize your research of the company you are pitching, creativity may just get your organization a yes!
6. Don’t forget about in-kind donations
When seeking corporate sponsorship for nonprofits, many organizations may find that some companies may not want to provide a monetary sponsorship. If you come across this situation, consider asking for in-kind donations.
These are non-monetary donations like goods or services. In-kind contributions are great ways to get smaller businesses or vendors to contribute to your cause and save you significant event or organization costs. Consider what a discounted price could offer. Some in-kind donations or discounts that can have a big impact include:
- Printing of invites, programs, or paddles
- Liquor, beer, or food
- AV setup and staffing
- Linens
- Entertainment
- Photography or videography
Consider how you can make in-kind donations a level of sponsorship as well.
Securing corporate sponsorships can be a game-changer for your nonprofit, providing financial support and valuable long-term partnerships.
You can create meaningful connections with companies that align with your mission by leveraging donor data, tapping into your network, conducting thorough research, and crafting compelling pitches.
Don’t shy away from exploring creative activation opportunities or considering in-kind donations as part of your strategy. With the right approach, your organization can build long-lasting corporate relationships that advance your cause and impact your community.
