My job crosses over with the non-profit world quite a bit. Most non-profits need or want sponsorship, so it makes perfect sense. As a result, I speak at a lot of conferences for non-profits and community organisations. I contribute to publications. I sit on panel discussions. And I pay close attention to the sponsorship advice being provided to this sector.
My respect for non-profit fundraisers is immense. I think they reside right alongside nurses and teachers, as the care they put into their jobs and the belief in what they do is so strong, but they are undervalued in our society. They need and deserve the best advice they can get.
The problem is that some of the advice being provided to these non-profits is not going to be helpful, and may be totally counterproductive.
I know the people giving the advice are full of good intentions and want the sector to succeed, but much of the sponsorship advice going out to this sector is coming from fundraising all-rounders, not sponsorship experts, and it does not reflect the most effective, professional approach to the highly specialised world of sponsorship.
Below, I’ve outlined some of the worst advice I’ve ever heard from these “experts”. The worst thing is that I’ve heard or read every one of these dozens of times. Of course, there will always be the exception – the organisation who succeeded by using these tactics. Let’s just be clear going in: That is the exception.
“Stack your board”
The idea behind this advice is that if you have a bunch of heavy hitters on your board, they will be able to secure sponsors on your behalf. In reality, this rarely works out as well as you might hope, and even if they do get some money, you will often end up with one – or all – of these scenarios:
- They cut a deal for way less than the sponsorship is worth, generally because they don’t know what a sponsorship is worth.
- They think the $5000 donation secured from a top executive is great, without realising that they’ve now fouled any chance you had of securing any substantial marketing investment from that company.
- They promise benefits that you can’t or don’t want to deliver, or which are in contravention of other deals you have in place.
- You end up dealing with a marketing team who have had this senior executive’s-choice sponsorship inflicted on their portfolio, whether it is a good strategic fit or not, and you never get a chance to forge a real partnership.
Is this really what you want?
The better option:
- Build a board that has exceptional skills and resources. If they happen to be well-connected, consider it a bonus.
- Make a wish list of potential sponsors – ones that are well-matched with what you do – and provide it to the board. Ask them for referrals or to make calls on your behalf to open the doors only.
Finally, once you’ve got a sponsor’s attention, don’t squander it. Work with the marketing team to understand their overall marketing objectives and target markets and create a super-customised proposal that meets those needs.
“Go in at the C-level”
This is related to the board issue, in that the top level of a company (CEOs, CMOs, etc) is unlikely to be where you’ll find a real marketing partnership. Instead, your offer will either be handed down the line until someone finally says “no”, or you might get a small donation (AKA, “go-away money”).
Unless you are looking for a small donation, you are unlikely to get a satisfactory response.
The better option:
As above, deal directly with the marketing team.
“It’s a numbers game”
This little gem is no doubt a derivative of fundraising via direct marketing. If you make X number of calls or send Y number of mailers, you should get a response rate of Z%. The issue is that you are not asking mum and pop to part with $30 because they believe in what you do, you’re asking a corporation for a $30,000 or $300,000 strategic marketing investment. Sending hundreds of one-size fits all requests for sponsorship is not only unlikely to get you any significant money, it makes you look amateurish. And with the fierce competition for a sponsor’s attention – not to mention their money – you need to be on your A-game, not a numbers game.
The better option:
- Be very selective who you target – ideally target no more than 15-20 brands.
- Choose brands that are both a target market and attribute/personality match with your organisation, program, or event.
- Do a lot of homework on the brand and develop a creative proposal that really breaks the mould.
Unsure how to develop that hit list or proposal? The whole process is outlined in The Sponsorship Seeker’s Toolkit 3rd Edition.
“Look for sponsors who should be sponsoring you”
This angle is driven by guilt. What companies are doing the wrong thing? What companies are making too much money? What companies just spent a squillion on a stadium sponsorship?
I work primarily for corporate sponsors, and I’m here to tell you, the second you invoke “should” is the second you’ve lost them. Even if they are talking in “shoulds” internally – as in, “we really should bulk up our community portfolio” – they don’t want to hear it from you. And given the number of approaches sponsors get from non-profits, they don’t have to.
The better option:
- Position yourself as a business partner and the sponsorship as a business solution.
- If a sponsor is active in the category you represent – environment, literacy, etc – showcase how sponsoring your organisation will help underpin their brand strategy.
Most importantly, never frame a sponsorship as if it is the sponsor’s responsibility to invest in your organisation.
“For sponsors, it’s all about the triple-bottom line”
Yes, the triple-bottom line is important, but it is unlikely to be a factor in a sponsor’s decision to invest in your organisation.
The part of that triple-bottom line that is often invoked in non-profit sponsorship approaches is that of Corporate Social Responsibility. Here’s the rub: Non-profit sponsorship does not tick the CSR box.
CSR is not about how a company spends its money, but how they make their money. If they make money in an ethical, sustainable way, they are already socially responsible and the box is already ticked. If they make money in a way that isn’t socially responsible, sponsoring your organisation won’t make a blind bit of difference – it won’t tick the box. Plus, if you talk about CSR in your proposals, most astute sponsors will know immediately that you don’t really understand what CSR is all about.
There is, of course, the exception to the rule. If you are proposing a sponsorship that will help them do business in a more ethical, sustainable way – for instance, you will audit their environmental credentials and make recommendations – you may be able to genuinely claim impact on CSR.
The better option:
Don’t talk about CSR, “good corporate citizenship”, or “giving back to the community”. It is unlikely any of these will push the “yes” button with a potential sponsor. Plus, these are calls to action for them to sponsor in the charitable sector – which is huge – and doesn’t say anything specific about why they should sponsor your organisation.
Concentrate instead on the specific, strategic value of your offer. And be sure to showcase why you are a better fit, and offer a stronger business proposition, than the other non-profits vying for their cash.
“Appeal to their compassion”
While I have absolutely no doubt that what your organisation does makes a big difference in people’s lives, the same can be said for thousands upon thousands of other organisations. Stacking an offer with one heart-wrenching story after another does not make a compelling business case and, frankly, is so common that if there was ever any impact, it’s long gone now.
The better option:
Don’t appeal to their compassion, appeal to their business sense. Remind yourself constantly that this is a business relationship, and that providing marketing opportunity has a much higher value to a brand than simply being one of oh-so-many non-profits doing good things in the world.
Show them ways that they can involve their customers and staff – hooking into their compassion and making them the heroes.
The upshot of all of this is that if you are trying to raise sponsorship, you need strong sponsorship skills. They are not a subset of fundraising, and if you want to succeed a sponsorship, it behoves you to seek out the best sponsorship advice you can find.
