Sponsorship is a type of support given by a profit-making business to charitable event or activity of an NGO. Sponsorships may take the form of cash, free or discounted products, technical support, etc. Sponsorships typically fall under Corporate Social Responsibility plans, and companies will often expect some marketing advantages in return for their support.
Often, companies are looking for an opportunity to invest in a social cause to improve their goodwill among customers. They want to show that they are investing their profit in a good cause. Businesses sponsor NGOs to influence customers, motivate employees, and generally build respect for the brand in the public.
Sponsorship is kind of a barter system between NGOs and businesses. A business gives you fund for an event, and you become medium of free or low-cost advertisement for the business.
Before signing on with a company for sponsorship, NGOs need to research if the company’s products and policies match their vision. As an organization working for a social cause, you may not want to be sponsored by companies harm the environment, sell potentially harmful products, or have a bad name.
After good research, position yourself to a prospective company. Look on the company website for any sponsorship information, or stop by a local store and try asking the manager for details. You will likely need to write a proposal and a budget.
Companies receive pitches for sponsorship all the time. To be successful, make sure to can show understanding of their business goals. Draw similarities, align your mission with the potential sponsor and give them specifics on how the sponsorship will be mutually beneficial. Ensure the value of a sponsorship compensates the cost. Think like a business person. Don’t forget to highlight the marketing opportunities as well as the cause they are helping. Make it easier for them to say ‘Yes’.
Why Choose Sponsorship?
The NGOs are slowly realizing the funding opportunity from the profit-making business. Even small NGOs have started to approach potential sponsors.
- Corporate sponsorship of charitable causes is growing. For example, PepsiCo invests more than US$400 million a year in sponsorship programs.
- Sponsorship partnership is a business deal, not a donation. It is a two-way street: they give you funding and you give them advertisement opportunities.
- Most businesses channel media for more publicity. Free media attention brings on more exposure to the work of your NGO as well.
- Businesses may want to test market a product in your event. They may be willing to offer freebies to people attending your event.
- Sponsors usually like to involve their employees. This can be for crowd-funding, technical backing, or volunteering