A Place for Sponsorship
Having diverse sources of income is sound business practice. Dependence on one customer or one major grant provider is risky. As competition for grants increases, so further sources of funds must be considered. As part of our support to a client, Charity Fundraising Limited looks to develop a funding strategy and build a portfolio of funding streams to complement support from Trusts, Foundations, etc.
One option is commercial sponsorship.
Not just another donation
Sponsorship is not a grant or donation by another name. Sponsorship is a business agreement, whereby the sponsor gains something in return for their support. Support may be cash or in kind – even intangible benefits, as will be explored later.
Sports sponsorship is well known. Companies sponsor teams or events in return for publicity and association with prestigious events: e.on and the FA Cup, nPower and Test Match cricket, Royal Bank of Scotland and the Six Nations Rugby competition. Publicity is certainly one thing a sponsor may seek, but the voluntary sector can be more creative about the benefits offered to sponsors.
So what does a sponsor want?
In return for their support, corporate sponsors will be looking for something that enhances their business: either directly, in the form of advertising; or indirectly by demonstrating the company’s role in supporting the community, the environment, children’s or other causes. Larger Companies now publish their Corporate Social Responsibility (CSR) report along with their Annual Report and Accounts, usually available on their website. CSR is an increasingly important factor as companies seek to distinguish themselves from their competitors.
A company’s CSR agenda can provide a basis for discussion on potential sponsorship. Management of the environment, renewable energy or the 3Rs of waste – reduce, re-use, recycle – will find a rich vein of CSR policies. However, topics such as the local community, village halls, opportunities for the disadvantaged and social inclusion can all be found.
What does the sector have to sell?
The sector could offer a service that matches a companies CSR agenda.
Charities may well have a respected image, locally or even nationally. Association with that “brand” may be attractive to a sponsor.
Publicity can be more than just acknowledging a sponsor in publications. Copy your newsletter regularly to all sponsors. Publicity material which can be used by the sponsor has a value too. Offer to contribute articles and pictures to the sponsors’ newsletters and reports. Human interest in the form of quotes or case studies can also be offered where fitting.
Think about the hidden assets of your organisation. If you have an interesting venue, offer the chance to host team meetings, awaydays or the opportunity to entertain clients.
Can you use volunteers? Companies are often looking for voluntary activities and will support their staff to take part or may consider such activities for teambuilding events.
Mentoring of both staff and trustees is very much about two-way learning and contributes to company employees’ career development.
Don’t be too shy to ask about some cash to help with your costs. As Paddy Hunter Murphy said in the January issue, “Remember one of the fundraiser’s basic rules – if you don’t ask you don’t get”.
Match the offer to the company
A company that sells direct to the public will be interested in the numbers of people that will see their name or logo, so if your project engages with the public, how can you acknowledge sponsorship?
Look for common interests: a car dealer with Dial-a-Ride; a garden centre with a community garden. Location is important – companies are more interested in supporting organisations close to their major locations or areas of activity.
Don’t overlook the value of contributions in kind – a printing firm may produce your leaflets at a reduced cost; a builder may offer some work at a lower rate. Managing income and expenditure is a balancing act. Decreasing expenditure without compromising service or quality is as valid as increasing income.
Finding a sponsor
Company addresses and websites can be found through local trade directories, Business in the Community or Top 100 lists. Personal contacts are always valuable. Look at the company’s business interests for a possible common interest; search their website under CSR or something like “Community Support” for their social responsibility interests. Unless a dedicated community contact is named, try the marketing department, (and marketing usually has a bigger budget!) Aim for a named contact and offer to send further details by post or e-mail. Expect to follow up with a courtesy call and be prepared to be flexible about the nature of support.
A clash of cultures?
There may be resistance in some charitable quarters to any contact, let alone contract with the commercial sector. Reputation could be tarnished by association with an inappropriate sponsor and no-one would suggest that a charity should compromise its objectives in pursuit of funds – but that holds true whatever the source of funds.
Conclusion
Grant funding and donations are set to remain a mainstay of the charitable sector. It is sound policy to consider and adopt additional sources. Managed judiciously, commercial sponsorship is a valuable asset in the fundraiser’s portfolio.
Further information and advice is available: Charity Commission guidance on charities and sponsorship