Nonprofit Fundraising Ideas: How to get Corporate Sponsorships

Summary

In this video, Amber Melanie Smith discusses strategies for nonprofits to secure corporate sponsorships. She emphasizes the importance of building relationships and community reputation, researching potential sponsors to ensure alignment with their values and goals, and understanding how companies fund charitable giving. Smith advises nonprofits to identify the correct contact within companies, make specific asks, and follow up politely. She also stresses the value of learning from rejections and maintaining relationships with sponsors for future opportunities.

Takeaways

• 🤝 Building relationships is crucial for securing corporate sponsorships, as it helps establish trust and familiarity with potential sponsors.
• 🔍 Researching potential corporate sponsors is key to finding companies that align with your nonprofit's cause and values.
• 📊 Understanding a company's charitable giving motivations can help tailor your sponsorship pitch to meet their goals and needs.
• 👤 Identifying the correct contact within a company is essential for effectively communicating your sponsorship proposal.
• 📋 Creating a clear and specific sponsorship proposal that outlines what you're asking for, the benefits for the sponsor, and how the funds will be used is important for a successful ask.
• 💡 Be mindful of IRS regulations regarding unrelated business income to ensure your sponsorship benefits align with your nonprofit's mission.
• 🗣️ Make your sponsorship ask by introducing your cause, expressing your sponsorship needs, and inviting discussion for potential partnerships.
• 🔄 Following up on sponsorship requests is necessary, as many companies receive numerous requests and may require reminders.
• 🚫 Learn from rejections by seeking feedback, which can provide valuable insights for improving future sponsorship proposals.
• 🤝 If you secure a sponsorship, follow through on your promises and maintain a relationship with the sponsor to potentially secure ongoing support.
• 🙏 Express gratitude and continue to build relationships with sponsors throughout the year to foster long-term partnerships.

Q & A

What are some strategies nonprofits can use to successfully get corporate sponsorships?

Nonprofits can use strategies such as building relationships, researching corporate sponsorship prospects, understanding how companies fund their charitable giving, identifying the correct contact within the company, making specific asks, following up on requests, learning from rejections, following through on promises, and maintaining relationships throughout the year.

Why is building relationships important for securing corporate sponsorships?

Building relationships is crucial because it increases the nonprofit's visibility and reputation in the community. Companies are more likely to invest in organizations they know, trust, and that have a good standing.

How can nonprofits identify companies that align well with their cause?

Nonprofits can identify aligned companies by reviewing the corporate social responsibility pages on their websites, checking out events and sponsorships of similar charities, and considering how their mission aligns with specific companies' goals.

What motivates companies to engage in charitable giving and sponsorships?

Companies may be motivated by goals such as enhancing their public relations, building employee community relationships, or aligning with causes that match their brand and business objectives.

How should nonprofits approach finding the correct contact within a company for sponsorship discussions?

Nonprofits should first consider personal connections they might have within the company. If none exist, they can contact an administrator or look for information on the company's charitable giving process to identify the appropriate person.

What should a nonprofit's sponsorship ask include?

A nonprofit's sponsorship ask should include a clear outline of what they are seeking from the company, the benefits for the sponsor, and how the sponsorship will help further the cause. It should be specific and ideally presented in a visual one-pager or brochure.

Why is it important for nonprofits to follow up on their sponsorship requests?

Follow-ups are important because many companies receive numerous requests and can become overwhelmed. Polite and persistent follow-ups can help keep the nonprofit's proposal at the forefront of the company's consideration.

How can nonprofits learn from rejections when seeking sponsorships?

Nonprofits can learn from rejections by politely asking for feedback on their proposal. This can provide insights into timing, fit, or other factors that can be improved upon for future requests.

What should nonprofits do once they secure a sponsorship?

Once a sponsorship is secured, nonprofits should follow through on the promises made during the partnership, acknowledge the sponsor as agreed, and maintain credibility and trust.

Why is it beneficial for nonprofits to maintain relationships with sponsors throughout the year?

Maintaining relationships with sponsors year-round is beneficial as it builds trust and can lead to repeat sponsorships. It also ensures that the company feels valued beyond just being a source of funding.

What is the role of personal connections in securing corporate sponsorships?

Personal connections can significantly aid in securing corporate sponsorships by providing an introduction to the right person within the company, which can increase the chances of a successful sponsorship request.

Outlines

00:00

💼 Strategies for Securing Corporate Sponsorships

Amber Melanie Smith introduces the topic of corporate sponsorships for nonprofits, emphasizing the importance of relationship-building, aligning with sponsors' goals, and clear communication. She shares her experience in running a nonprofit and the challenges faced in securing corporate funding. Amber outlines the steps to approach corporate sponsorships, starting with laying the groundwork by building relationships and reputation in the community, followed by researching potential corporate sponsors to ensure alignment with the nonprofit's cause. She advises on understanding how companies fund their charitable giving and identifying the right person within the company to approach for sponsorship.

05:02

🔍 Identifying the Right Sponsorship Contacts

In this section, Amber discusses the importance of identifying the correct person within a company to discuss sponsorship opportunities. She suggests leveraging personal connections within the company to find the right contact, as this can significantly increase the chances of a successful partnership. Amber also provides strategies for those without existing connections, such as reaching out to administrators or using online resources to find the appropriate person in charge of charitable giving and sponsorships. She stresses the importance of tailoring the sponsorship ask to the company's goals and creating a clear, concise proposal outlining the benefits for the sponsor and how the funds will be used.

10:03

📝 Crafting and Executing the Sponsorship Proposal

Amber explains the process of crafting a sponsorship proposal, emphasizing the need for specificity and clarity. She advises on creating a visually appealing, one-page document that details the nonprofit's cause, the sponsorship ask, and the benefits for the sponsor. Amber also touches on the importance of adhering to IRS regulations regarding unrelated business income tax and suggests common acknowledgments that are acceptable, such as logo placements and social media shoutouts. She encourages making a compelling ask, following up on inquiries, and learning from rejections to improve future proposals. Amber concludes with the importance of maintaining relationships with sponsors, thanking them, and keeping communication open for ongoing partnerships.

Keywords

💡Corporate Sponsorships

Corporate sponsorships refer to the financial or in-kind support provided by corporations to nonprofit organizations, often in exchange for branding or marketing opportunities. In the video, the concept is central as it discusses strategies for nonprofits to secure such sponsorships, highlighting the importance of aligning with the company's goals and offering mutual benefits.

💡Nonprofit Organizations

Nonprofit organizations are entities that operate for purposes other than generating a profit, typically focusing on charitable, educational, or advocacy initiatives. The video is aimed at helping these organizations raise funds through corporate sponsorships, emphasizing the need for strategic relationship building and clear communication of their mission and needs.

💡Fundraising

Fundraising is the process of collecting voluntary contributions of money or other resources, usually from individuals or corporations, to finance a specific project or cause. The video script discusses fundraising in the context of securing corporate sponsorships, which is likened to sales and requires relationship building and clear value propositions.

💡Relationship Building

Relationship building involves the process of establishing and nurturing connections with individuals or organizations. In the video, relationship building is emphasized as a foundational step for nonprofits to secure corporate sponsorships, suggesting that a strong reputation and network can facilitate trust and investment.

💡Corporate Social Responsibility (CSR)

Corporate Social Responsibility refers to a company's commitment to consider environmental, social, and governance (ESG) factors in its operations and decision-making. The video mentions CSR as a key area for nonprofits to research when seeking sponsors, as companies often list the causes they support on their CSR pages.

💡Alignment

Alignment in the context of the video refers to the match between a nonprofit's mission and a company's values or business goals. It is crucial for securing sponsorships, as companies are more likely to support causes that align with their brand and help them meet their own objectives.

💡Charitable Giving

Charitable giving involves the act of donating resources, typically money, to nonprofit organizations or causes. The video discusses how understanding a company's charitable giving motivations and processes can help nonprofits tailor their sponsorship proposals effectively.

💡Sponsorship Proposal

A sponsorship proposal is a formal request or document outlining what a nonprofit organization is seeking from a potential sponsor, including the benefits to the sponsor. The video emphasizes the importance of creating a clear and specific proposal that aligns with the sponsor's goals and includes permissible benefits to avoid IRS penalties.

💡Unrelated Business Income Tax

Unrelated Business Income Tax is a tax imposed by the IRS on nonprofits when they generate income from activities not substantially related to their exempt purpose. The video cautions nonprofits to ensure that their sponsorship benefits comply with IRS rules to avoid such penalties, highlighting the importance of compliance in fundraising strategies.

💡Follow-up

Follow-up in the context of the video refers to the act of re-engaging with potential sponsors after an initial contact or proposal. It is presented as a crucial step in the sponsorship process, emphasizing the importance of persistence and maintaining communication to secure sponsorships.

💡Rejection

Rejection in the video is discussed as a common outcome in the process of securing corporate sponsorships. It is framed as an opportunity for nonprofits to learn and improve their strategies, suggesting that feedback from rejections can provide valuable insights for future sponsorship efforts.

💡Acknowledgment

Acknowledgment in the video refers to the act of recognizing and expressing gratitude to sponsors for their support. It is highlighted as a key practice for building credibility and trust, and for maintaining long-term relationships with sponsors, which can lead to repeat support and referrals.

Highlights

Corporate sponsorships are a key strategy for nonprofits to raise funds.

Building relationships is crucial for securing corporate sponsorships.

Understanding how to solve a sponsor's problem while meeting your needs is vital.

Clarity in what you ask for is essential in the sponsorship process.

Laying the groundwork involves building a strong community presence and reputation.

Researching corporate prospects involves aligning with their values and business goals.

Understanding a company's charitable giving motivations is key to a successful partnership.

Identifying the correct contact within a company is critical for sponsorship discussions.

Creating a specific and visual sponsorship proposal increases the chances of success.

Avoiding unrelated business income tax issues by adhering to IRS guidelines on sponsorships.

Offering benefits that align with the sponsor's goals is important for a mutually beneficial partnership.

Making the sponsorship ask by introducing your cause and inviting further discussion.

Following up on sponsorship requests is necessary due to the high volume of requests companies receive.

Learning from rejections and feedback is a valuable part of the sponsorship process.

Fulfilling promises made during the sponsorship partnership is crucial for building trust.

Saying thank you and maintaining the relationship throughout the year can lead to repeat sponsorships.

Join the 'Change the World or Bust' Facebook group for further discussions on making an impact.

Transcripts

Corporate sponsorships are one of many ways that nonprofit organizations can

raise money, but why does it seem like some nonprofits manage to get corporate

funding and sponsorships where it's such a struggle for others? In this video I'm

going to talk through some of the basic strategies that nonprofits use to

successfully get corporate sponsorships. Welcome back! My name is Amber Melanie

Smith, and I make these videos here on YouTube to help aspiring changemakers

with tips and strategies to help you change the world and live a life of

impact and purpose. So I've been running the nonprofit organization that I

started a while ago for some time now, and I can tell you that figuring out how

to get corporate funding and corporate sponsorships was something that took me

a while. Once I finally figured it out though, a lot of strategy started to make

sense. I learned that getting corporate

sponsorships is a lot like any other kind of fundraising - it's all about

relationships, it's all about figuring out how you can solve the sponsors

problem as well as meet your own needs, and it's all about being clear about

what you are asking for. In fact it's a lot like sales in that way. So without

further ado, here are the steps that nonprofits can go through to get

corporate sponsorships. Step one: lay the groundwork you want to be building a

foundation to fuel your asks for sponsorships by building lots of

relationships so you can try cold-calling a company to see if they'd

be willing to sponsor your charitable effort but it's a lot harder fundraising

across the board gets easier the more well-known you become in the community

the more relationships you build and the bigger your network and that makes sense

because people are more likely to invest their dollars and give you donations if

they know who you are trust you and that you have a good reputation so you want

to start by building your relationships and your reputation by getting out there

in the community raising awareness about who you are and what cause you represent

you can do this in a variety of ways from public speaking to attending

networking events you can write articles guest blogs on other popular websites

you can share your cause with the media and hope that they pick up on and do a

news story about you you can attend other

charitable that's going on in your community the people who are there

already care about some causes in the community so they might be likely to

care about yours too if you can get to know them

generally it's all about becoming a known entity and getting a good

reputation step 2 is to research your corporate sponsorship prospects it's

very unlikely that a random company is going to sponsor your cause you have to

figure out which companies are most likely to believe in what you're doing

and align well with your cause and your brand there are a couple of ways of

figuring out if a particular company would be a good fit for your cause you

can go on their website look at their corporate social responsibility pages

and they often will list the causes they care about right there from environment

or poverty or whatever it may be they'll list them on their site you can also

check out the websites and events fundraising events other types of events

of other charities who are working a similar space as you so let's say you

are working on a hunger related issue check out what other hunger related

nonprofits are doing with their corporate sponsors who those sponsors

are those companies are already proven to be aligned with that cause in this

case hunger so they might be potential sponsors for your cause to ultimately

just keep remembering that a company sponsorships have to align with their

own brand and their own business goals so be thinking to yourself what mission

does my nonprofit have that aligns with specific companies if you are a farming

or hunger related nonprofit maybe a company that deals in agricultural

products would be a good fit for you if you are a non-profit that deals in

helping animals maybe a pet supply company could be a good fit for you

because then they're gonna be able to put their name on the cause that aligns

with what they're already doing to attract customers as well the third step

is to understand how each individual company funds

their charitable giving and sponsorships what motivates them in other words

what's a goal that the company has that your cause can help them meet so that

it's a mutually beneficial partnership a company motivated by getting some good

public relations for example might be interested in partnering with a cause

that aligns with their brand but also that has a really big audience since

they're trying to get their name out there a company who is interested in

getting their employees out there in the community building relationships might

be interested in a partnership or sponsorship in which they can also

volunteer with your organization so there are lots of different things to

consider in terms of what the company is looking for when they are doing their

charitable giving and how your cause can help them meet that need so step four

once you think you've identified a couple of potential corporate sponsors

you really want to figure out who the correct person is within each of those

companies to talk to about a sponsorship the first thing I would do is take a

look at my list of potential corporate sponsorship targets and think to myself

do I know anybody who works at any of these companies or do I have any

personal connections there because a personal connection can go a long way to

getting your foot in the door if you have a personal connection there

great you can ask that person who the correct person in the company would be

to talk to about their charitable giving their social responsibility and their

sponsorship efforts consider that every company does this a little bit

differently one company might have their Human Resources person in charge of

their charitable giving another company might have the CEO in charge of their

philanthropy and charitable giving and yet another company might have a whole

committee of employees they've nominated to take in applications for sponsorships

and make a decision every company is different so if you ask the wrong person

you might not get a response and it might be a dead end for you so figuring

out who the correct person to ask is really important if you're not sure

where to start and you don't have a personal connection at a company one

strategy you might consider is contacting an administrator there and

just asking them very simply hey I'm and learning more about your company's

charitable sponsorship efforts where can I find more information about that who

is the correct contact for questions then that person will hopefully respond

to you and you will have a lead there that you can start the conversation with

about partnering and sponsoring in the future step 5

now before you actually ask for a sponsorship you've got to decide on what

you are asking for in your sponsorship you're going to have better odds of

securing a sponsorship if you make your sponsorship ask very specific you want

to create a brief ideally visual one-pager or brochure that outlines what

you are looking for from the company in terms of sponsorship now this document

needs to include a little bit about your cause of course your website it needs to

include what you're asking for that could be either a specific dollar amount

or an in-kind ask which means something that's not monetary but something of

value to you like media exposure or an item you want to include what the

benefits are for the sponsor and then how those dollars will help you further

your cause when you're thinking through what kinds of benefits to offer a

sponsor you just have to be a little bit careful because there's something called

the unrelated business income that means that if you are generating funds for

your nonprofit in a way that has nothing to do with your mission as a non-profit

the IRS can actually penalize you by charging you taxes because in their

perspective you strayed from your mission of your nonprofit and you're

just generating income in some random way so you need to be treated more like

a business in that case now what this has to do with sponsorships is that

there are certain rules you have to follow in sponsorships to avoid getting

penalized through this unrelated business income tax just be sure to look

up what those rules are before you proceed with offering a potential

sponsor some of those perks I can tell you right now certain kinds of

advertisements violate this IRS policy you are unable to for example include

coop that offers 50% off for the company that

is sponsoring your cause because that from the IRS his perspective is like you

are becoming a marketing arm of the private company and that is unrelated

business to your mission so just be sure you review those rules and make sure you

are on the up-and-up there are plenty of ways you can acknowledge your sponsor

however that are totally fine things that are pretty common include logos on

websites logos on t-shirts social media shoutouts and acknowledgments doing a

video together in which the sponsor has an opportunity to share what the company

does or have a speaking opportunity at your event again this is where you want

to think through what problem you're solving for the company and making sure

that the benefits can help them meet their goals then they're gonna be more

likely to want to partner with you once you have that document together you want

to go ahead and make your ask you want to talk to the contact you found at the

company you want to introduce yourself and let them know what you're hoping for

and invite them to have a discussion with you you want to always end your

email or your correspondence with a question that prompts them to respond

something like would you have an opportunity to chat with me about this

or what other information would be valuable for you in considering

partnering with our costs step 6 is to follow up a lot of companies get a ton

of requests for charitable donations or sponsorships throughout the year and

they can get quite busy with these requests so don't be shy about following

up on a request that you previously made politely follow up ask if they have any

additional questions or if there's any other information that they need that

would be helpful for them and then if there are any updates or if any

decisions have been made about partnering with your cause of course if

they do have questions answer them thoroughly and transparently step 7 and

this is a hard one you've got to learn from rejections also keep in mind you're

gonna hear no a lot just keep on moving it's okay you're gonna get that yes at

some point and that's what's gonna carry you forward so if someone tells you no

they will not sponsor your cause the is actually a great opportunity to learn

and grow and make your next sponsorship request whether it's to that company or

some other company more successful if they say no it's really important that

you respond politely that you thank them for their time and that you ask them if

they'd be willing to share any feedback with you about their decision you would

be really surprised what you can learn from this exercise maybe for example

they told you that they actually did like your cause but your timing wasn't

very good because they make all of their budgeting decisions in one month of the

year and it's not that month this gives you a lot of information this means that

you can go back to them when it is that month and try again or maybe they liked

what you were trying to do but felt that you were a little bit too new or

unproven as a nonprofit that means that maybe after a couple of years of getting

some more experience under your belt and showing some more impacts you might be

able to go back and try to re-establish that relationship or maybe someone at

their company had a bad experience with your nonprofit it sucks to hear this but

it's really important to know that it happens that you can try to get to the

root of it and fix it sometimes you might also learn that they're just not a

good fit for what you're trying to do that's okay that means that you don't

have to spend time pursuing that relationship any further and they don't

have to pursue a relationship with you any further and you can part ways and

it'll be fine and you can go off and spend your time finding a better fit for

your work step eight if you get a sponsorship follow through on the

promises that you made through the partnership acknowledge the company and

the sponsor how you promised you would in the very beginning this is going to

build credibility and Trust and believe me companies talk to each other if one

company has a great experience supporting your cause they're gonna tell

their friends and other companies I've had this happen to me so I know for sure

that it's a thing finally step 9 and this is really

important for your future success say thank you and keep building that

relationship throughout the year many businesses will return year after year

to keep sponsoring your cause if you maintain that trust and keep that

relationship going you want to be talking to that company throughout the

year inviting them to other things that you're doing

sharing blog articles you've written about your cause just generally keeping

up communication so that the only time that they hear from you isn't when you

need money so those are the basic steps I would love to hear from you if you

have tried to get corporate sponsorships in the past what kind of success have

you seen what strategies did you try to be successful or if a company said no

what kind of feedback did you get share in the comments below let us know I've

met an amazing amount of folks on this channel and I just know that we will

have a great conversation about it before we wrap up one final thought and

that is that if you are in Facebook don't forget to check out my group

change the world or bust where myself and other change makers are having great

conversations around making an impact nonprofit social enterprise work and so

much more once again my name is Amber Melanie Smith thank you for checking out

this video please like subscribe to ring that Bell and I hope to see you again

soon