Understanding Event Sponsorship

Companies sponsor events for several reasons but their number one reason is for Marketing and how it will affect their bottom line. Basically will they sell more products or services and will they make more money from sponsoring your event. Companies want to market to their target market- is your event audience that market? The return on investment (ROI) is hard to measure but we have put together a strategic sponsorship plan to help sponsors reach their goals. Remember it is about the focusing on the Sponsors needs in order to fulfill your own. It is a Win-Win situation!

Step 1: Determine what you have to offer a sponsor in benefits. This includes marketing benefits and hospitality benefits at your event. What can you offer a sponsor in terms of benefits?

Step 2: Identify who your event audience is. What type of person attends your event? Define your attendees’ demographics. This is important to a sponsorship because they want to make sure that they are marketing to their target market.

Step 3: Determine what levels you will offer your sponsorship packages. First go through and decide which levels will get what benefits. Each benefit has a value to it so determine your level amount based off that value. People and Companies want value for their money, who doesn’t? So, make sure you are offering enough value for their money.

Step 4: Research potential sponsors. The internet is a great tool to begin researching companies that might be interested in you. Brainstorm a list of companies that you think would be interested in your organization and your event audience. Then check out their website to see if they have sponsorship criteria listed or event a Corporate Social Responsibility plan outlined. This will give you clues as to where they interest is. You can also check out other organizations that are similar and what sponsors they have secured. This will help you identify more companies that might have an interest in you.

Step 5: The design of the proposal. The proposal should be focused on the potential sponsor and the benefits they would receive by partnering with you. The proposal should not be focused on your organization. It is about what you can offer the sponsor and what their return on investment is.

Step 6: Soliciting Sponsors: Have a Hot or Warm lead is always beneficial so look at your current contacts and see who might have that lead for you. From there it is about making relationships. Sending a proposal to a potential sponsor could be beneficial- some of them have specific guidelines to submitting proposals so do what they ask. Reaching out to them and setting up a meeting with the head of the Marketing Department is one of the best ways to make more happen. Sometimes it is tough reaching these folks and getting that appointment. In order to reach your goal you have to keep going and keep calling more people.

Step 7: Sponsor Fulfillment: Once you have secured a sponsor you want to keep them. Make sure that you fulfill everything within the agreement. Make you sponsor feel like VIP’s because they are. Go the extra mile with them and build on the relationship. We want them to feel like this was a good investment.

Step 8: Follow-up: First off make sure you thank the sponsor after your event. Putting together a post-event report also is very important. This allows the sponsors to measure their investment. It also ensures the sponsor that you fulfilled their sponsorship agreement. Make sure they feel appreciated and wanting to come back the following year.

Developing the $250 billion through special events

Individual donors gave 83% of the $295 billion donated to nonprofits in 2006, as stated in the Giving USA 2007 Report. Foundations came in at 13% and Corporations at 4%. If you do the math, you will realize that individuals give roughly $250 billion each year. “Charities’ direct market appeals are not raising as much money as they have in years past, and charities’ are losing more donors and attracting fewer new supporters”, according to the January 8, 2008 issue of Chronicles of Philanthropy. Many organizations focus more of their time and energy on the $50 billion (17%) rather than the $250 billion (83%).

Developing one relationship can be overwhelming and not an efficient use of an organization’s resources and time. Utilizing special events as a way to increase your individual donor base and build exposure within the community can be more efficient and beneficial for building a sustainable funding model for your organization. Here are 5 easy tasks you can do to begin increasing individual donors through special events:

Be strategic in who you invite: Your goal is to find donors who will have a vested interested in the great work you do in the community. Therefore you need to identify those donors. Figure out your target market of donors and invite them to your event. Ask board members to invite these potential donors to sit at their tables. Utilize your table sponsors’ givebacks in order to invite more potential donors.

Engage event sponsors’ employees: Engaging major event sponsors’ employees is an added benefit to these companies. It helps boost morale and puts the company in the community spotlight. Host company happy hours and share your mission with employees. Share with them the impact that a company like the one they work for creates positive impact on their community. Tell them how they can be involved on many levels as a volunteer, in-kind donor or even financial donor. Offer a discount to major sponsors’ employees to attend your event.

Assign staff, board and volunteers a list of people to schmooze: Your staff, board and volunteers are some of the best advocates for your organization. Provide them with talking points and even host a pre-event training on networking. Assign them with a list of people that they need to connect with at your event. Make sure that everyone is dispersed among your attendees. You do not want all your staff and volunteers sitting in the back all at one table. Get them out there talking about your organization.

Showcase the heart of your organization: An event should be a fun way to showcase your organization and give attendees a taste of what you do. You want attendees to walk away with an understanding of who you are and a desire to be more involved. Create an emotional hook at your event. You don’t need to spend lots of money on décor, entertainment or event centerpieces. Find creative ways to engage your attends with the heart of your organization.

Follow-up is key: Following up after an event is the key to cultivating that relationship with potential new donors. Thank them for coming to your event. Have board members, volunteers, staff and even clients personally call to thank them for attending. Invite them to tour a facility, spend time with a client or attend a luncheon with the President of your organization or maybe even the President of your major sponsors. Be creative in getting them more engaged with your organization.

Remember to keep focused on the purpose of your event and the mission of your organization throughout the process. An event is not over after everyone gets in their cars and goes home. The work is just beginning, but an event is a great way to take that first major step of introducing a potential donor to who you are, what you do and how they can be involved.