This document discusses perspectives on corporate sponsorships from both nonprofit and corporate sides. It provides an overview of trends in corporate giving, including companies giving more but to fewer nonprofits. The process of building corporate relationships is outlined, including prospecting, qualification of potential donors, cultivation of relationships, crafting solicitation materials, and stewardship after receiving support. Key considerations for nonprofits are understanding corporate needs and focusing on long-term relationship building.
1. Corporate Sponsorships:
Perspectives From Both
Sides of the Table
Hans VanDerSchaaf
Portland State University
Director of Corporate and Foundation Relations
hansv@pdx.edu
Anthony Petchel
Oregon Museum of Science and Industry
Director of Development
APetchel@omsi.edu
4. Changing expectations and
trends in corporate giving
What has changed since
the recession, in terms of
how companies want to
interact with nonprofits, and
how nonprofits need to
interact with companies?
6. How much should I focus on
Corporate Giving?
Where should your organization
focus its fundraising efforts?
What is normal for your sub-
sector?
Tip: Use corporate giving to
leverage individual giving.
7. How is corporate giving distributed?
Giving in Numbers, 2012 Edition, Committee Encouraging Corporate Philanthropy,
8. 2013 Trends
Give More
71%
Give Less
2%
Stay The
Same
27%
0%
2012 Corporate Giving Survey
http://philanthropy.com/article/Big-
Companies-Gave-4-More/132989/
9. Changing expectations and
trends in corporate giving
• Not all sectors have returned
Companies are giving again, but growth will be
modest
Average gift size has increased, but companies
are giving to fewer nonprofits
Decisions are taking longer and need more lead
time
Giving is more focused
The larger the gift, the more involved the
company needs to be (i.e. having a board seat)
10. The Process of Building
Corporate Relationships
The key to success:
Building and maintaining
long-term relationships
with your donors and
potential donors.
15. Qualification: Initial Meeting
Corporate
Perspective
• Do your homework!
• Ask about the
company first
• Know how your
mission aligns with
our company
• Dress Appropriately
• Be conscious of
their time
Nonprofit Perspective
• Do your homework!
• Ask open-ended
questions
17. Understanding Corporate Needs
and Desires
Corporate Perspective
• Ask
• But, do your homework first
• Remember not all corporate is
philanthropic
• Think outside the box
• Know your audience
Nonprofit Perspective
• Ask (strategic) questions to discover:
interests, connection point(s), decision-
making
process, relationship, timing, priorities
• Do extensive homework before a
meeting/interaction
18. Relationship
Building/Cultivation
Corporate Perspective
• Cultivation is an
ongoing process
• Keep in contact, not
just when you need
something
• Give first
• Be Authentic
Nonprofit Perspective
• Be Creative/Think
Outside of the Box
• Build a relationship
with your organization
- create multiple
connection points
• Be present, but not
overbearing
• Position your program
and organizational
leaders for success
19. Relationship
Building/Cultivation
• Donor tours
• Volunteer opportunities
• Introductions (such as to
the Board, other
sponsors, etc.)
• Check-ins (no ask)
• Nominate for awards
• Send articles of interest
Cultivation
ideas
21. Crafting the Case
Corporate
Perspective
• How does your
case align with the
company’s
priorities?
• Keep it simple
• Appearance
matters
• Spend the money
on marketing
Nonprofit
Perspective
• Short
• Compelling: stories
(heart) and data
(mind)
• Visually appealing
22. Solicitation Strategy
Corporate Perspective
• Do your homework
• Ask for the right
amount
• Lead time (60+days)
• Don’t give too many
choices
• Who will you ask
• Who will be asking
• Objections
Nonprofit Perspective
• What type of ask?
• Event, gala, general
support, program
support, etc.
• How much will you
ask for?
• Who will be involved?
• What will be the
timing?
• Who is your
advocate?
23. Solicitation
Thinking beyond Galas, Golf
Tournaments, Walks, etc.
• Adopt a ______ for a year
• Other events
• Don’t forget in-kind
• Bottom-line relieving
• Employee giving campaigns
• Corporate Day
• Non-cash benefits
24. The Proposal
Key Elements
• Professional look
• Compelling description of event/opportunity
• How will the partnership benefit the
company
• Specific benefits they will receive
• Audience demographics
• A specific dollar amount
• Concise
• Exclusivity?
25. The Proposal
You should have a variety of
solicitation materials at your disposal:
• One paragraph description
• One page fact sheet
• Full proposal (3-5 pages)
• Cover letter
• Response form (if needed)
Other materials: annual
report, 990, IRS letters, press kit, etc.
26. Solicitation- “The Ask”
Corporate Perspective
• Clear meeting purpose
• Appearance matters
• Dress the part
• Written proposal
• Don’t over sell
• Know the decision process
and timing
• Practice giving the pitch
• Have answers for objections
• Be open to customization
• Keep it short and conscious
• Be gracious if the answer is
No
Nonprofit Perspective
• Can happen in person
(best) and/or in writing
• Set up the meeting for
success - they should know
you plan to pitch
• Bring the right people
• Script the meeting
• Don’t do all (or even most)
of the talking
• Pause when you’re finished
and give them space to
respond
• Clarify next steps
• Follow up!
27. Solicitation: Tips
Know before you ask
• Who- does the Asking?
• What- are you asking for?
• Where- are you asking?
• When- are you asking?
• How- much are you asking for?
29. The Sponsorship Agreement
Every sponsorship should
have an agreement
• Formalizes conversation
• Keeps both parties on the same
page
• Clarifies roles, responsibilities, and
deadlines
• Clear deliverables
30. The 4 faces of “NO”
• To this project, but perhaps
anotherno
• Not now, but perhaps laterno
• To the amount asked forno
• Forever: the real NONO
31. Pet Peeves
Errors (Spelling, logos, copy, etc.)
Last minute requests
Unprofessional appearance
Overselling impressions (quality vs. quantity)
No value to company
Not doing your homework
Not thanking
Taking company for granted
32. The cycle never ends
Discovery &
Qualificatio
n
Prospecting
& Prospect
Research
Cultivation
Stewardshi
p
33. Stewardship
Corporate Perspective
• Did we mention follow-up?
• Recognition and
Acknowledgment
• Post-event review (no
ask)
• Formal report
• Make sure you fulfilled
your end of the agreement
• Keep in contact all year
• Remember: the cycle
never ends
• Send hand written thank
you note
Nonprofit Perspective
• Follow-up and more
follow-up, particularly for
events
• What was the ROI?
• How can you be creative
in your stewardship?
• Be timely and continuous
in communication
• Are they using all of their
benefits?
34. Stewardship ideas
Donor thank you event
Nominate for awards
Helping them be successful
Invitation to special event
Volunteer opportunities
Connecting with others
Press release highlighting sponsor/event
Newsletters article
Social media tags
List in your annual report, donor wall, etc.
35. Recap
• It’s about themMust be
donor-centric
• Appearance mattersBe
professional
• It can take 3-5 yearsThink long-
term
• The cycle never stopsIt’s a year
round process
AnthonyQuick poll of audience:Size <500k, 500k-1mm, 1-5mm, 5+Type of orgPositionsLength in position
Hans--Outline of presentation:DefinitionsChanging world of corporate philanthropyRelationship building and securing support
Anthony 1-4Hans Moves Mgmt.The Chronicle of PhilanthropyBig companies gave 4% more in 2012 Donations of products are growing at a faster rate than cash. Overall corporate giving, when both cash and products are counted, rose by 14.9 percent in 2011.The median percentage donated from profits is1 percent--“Corporate giving, also known as corporate philanthropy, refers to the act of for-profit companies donating some of their profits or resources to charity. Donations may come from the company directly, or through a separate, company-sponsored foundation or public charity”--Company-Sponsored Foundations:are separate legal entities, maintain close ties with the parent company, and their giving usually reflects company interests.can be private foundations or public charities.generally maintain small endowments and rely on regular contributions from the parent company and/or subsidiaries to support their giving programs.often grow their endowments in profitable years and tap them in leaner years.must follow the appropriate laws governing private foundations or public charities, including public disclosure requirements.--Corporate Direct Giving Programs:Money comes directly from company profits often include employee matching gifts and in-kind giftsare often used to support programs that do not fall within the guidelines of the company-sponsored foundation.--Corporate SponsorshipsA contribution (cash and/or in-kind) is made to the nonprofit in order to receive agreed upon benefits that further the company’s objectives.Logo placement, Sponsorship recognition, tickets to an event, etc. Corporate support usually related to some kind of visibility; may come from a marketing budget: “A charity can, without being taxed, accept any payment - which may be money or in-kind payment of property or services - as long as there is no arrangement or expectation that the sponsor will receive a “substantial return benefit”, as defined by IRS regulations.” http://www.adlercolvin.com/pdf/revenue_generating_activities/Website_Resource_Corporate_Sponsorship_FAQ%20_(00087971).pdfSponsorships are not the same as Corporate Philanthropy--Moves ManagementDiscovery/QualificationThe act of learning about a prospective donor such that the development officer can make a decision about whether the prospect has a likelihood of giving.Prospecting/prospect researchUsing the Internet and other technologies to collect, evaluate, analyze, organize, package and disseminate publicly available information in a way that maximizes its usefulness and enables accurate and educated decision-making. Adapted from: Association of Prospect Researchers for Advancement, http://www.aprahome.org/.CultivationEngaging and maintaining the interest and involvement of (a donor, prospective donor, or volunteer) with an organization's people, programs, and plans. Adapted from “The AFP Fundraising Dictionary Online” - http://www.afpnet.org/files/ContentDocuments/AFP_Dictionary_A-Z_final_6-9-03.pdfStewardshipFulfilling the Promise - Ongoing process of making the donor feel satisfied with their experience and proud of their investment in the organization.
HansAsk Audience.
HansWhere should your organization focus its efforts?
Hans
HansNotes:-Chronicle the full scope and scale of contributions by Fortune 500 global companies.-Carried out in early 2012, the survey of 2011 corporate giving data received 214responses, including 62 of the top 100 companies in the Fortune 500.
Anthony
AnthonyGrowth in corporate giving will be moderate in the coming years Despite the expectations back in 2009 that corporate giving would take a long time to recover, most firms were quick to restore their grants and donations to previous years’ levels.Fewer grants, but more higher-level gifts:The number of total grants is on the decline, but their monetary value is increasing. Two reasons are behind this trend: First, companies are overwhelmingly becoming more strategic about where they donate moneySecond, companies want those grants to go to organizations where the work aligns with the companies’ business interests. Non-cash giving is volatile: Non-cash donations, such as information technology equipment or land, showed larger swings in total amounts donated the past few years. Who’s the most generous with cash?Energy companies and utilities lean heavily on direct cash donations. Except Renewables.Financial companies, and then manufacturers, primarily fund philanthropic donations through their charitable foundations. Some banks still struggling and focused more on CRA. Companies in the Consumer package goods, health care and retail industries leaned toward non-cash donations. The more business a company does abroad, the more likely international donations are a large part of those philanthropic portfolios.
AnthonyNo different that with individuals
AnthonyHans
Hans
Hans--Scanning -- looking everywhere - magazines, newspapers, social media, events, who is funding other organizations, relationships that lead to possibilities (e.g. board, ED/CEO, relationships you develop yourself)Example: Vernier Software and Technology (PBJ fastest growing list)--Attend networking and other philanthropic events--Start in your own backyardVendors, Neighbors, volunteers, etc.
Hans--Gauge interest in cause, company guidelines, connection to organization, etc.--Prospect research => fit--Meeting/conversation - - in person/over the phone if you can get it, rather than in writing, allows a conversation to be more generative and creative
AnthonyHans--ask open-ended questions: How are your priorities evolving? How have they changed? How does decision-making happen? when are decision considered? What’s important to your company, in terms of nonprofit partnerships? What kind of impact? What kind of visibility? what’s the range of your giving?
Anthony
AnthonyUnderstand sponsors’ needs Sponsors do not provide funds because they feel benevolent. They have a number of marketing and corporate objectives that sponsorship can help them to meet. When you are seeking sponsorship for your organization, it is important to understand the drivers which include: selling more product by increasing the visibility of their brand; raising their profile by association with your challenge; improving their corporate image by involvement in appropriate activities; meeting corporate responsibilities by supporting good causes; achieving product endorsement through association with a successful event/participant; hospitality opportunities by inviting clients to high profile events run by you; improving employee relations through hospitality or association with a high-profile challenge; improving media coverage (within the company (employees, shareholders), the sector they are in (suppliers, customers) and of course externally (to the public and media).
Hans--What are the strengths of your organization and how can you play to those? Can you create a unique experience? Build a strong relationship outside of you - builds more affinity and minimizes risk related to turnover As you cultivate, add a few small touches, but be wary of being too aggressive How do you prep your executives? Briefings that include - background, strategy, talking points, outcomes, next steps? --Ask (strategic) questions to discover: interests, connection point(s), decision-making process, relationship, timing, priorities Do extensive homework before a meeting/interaction
Hans Examples: Umbrella Tours at PSU; Site tours with donors/potential donors Example: Safeway and The Freshwater Trust -- weren’t doing work in key areas where they funded but could provide some visibility
Anthony
Anthony Hans Easy to digest and understandPresent a compelling vision and talk about the unique niche and importance of your workSpend the money on marketingExample: Share electronic copy of PSU’s case statement for scholarships
Anthony Hans Align solicitation with everything you have learned Can you be creative? - i.e. SBAD gala and event sponsorships and scholarships Pre-meeting/conversation to flush out best chance of success Ask amount - no hard and fast rules, just guidelines - scanning, company size, previous conversations; sometimes ask high, sometimes ask in the middle; depends on how close the relationship is; how excited they are Be thoughtful about who to involve - peer to peer (when peer is giving) is strongestScript all involved, and have a short strategy meeting ahead of timeBe thoughtful about when relationship/other factors (e.g. decision-making timeframe) indicate that it’s time to ask
Anthony Make it fun and engaging.
HansShow OMSI & PSU Sample
Hans
AnthonyHansMy preference is to walk through a proposal in person - softens, creates ability to ask questions Script the meeting and roles -- who will do what, when? When will you provide the handouts? What can make you stand out? Can you bring a beneficiary or show a video/pictures? Ask for meeting when the time is right Be short - ideally, no more than 5 minutes of you talking by yourself Follow-up Be clear - objectives/outcomes, solid budget Example: Local engineering firm (Glumac) and 10-minute pitch
Hans
Anthony
AnthonyShow Sample
AnthonyWhat “NO” might mean: Lack of infoNot of interestAlignment/Benefits not seen No philanthropic interestInsufficient cultivation
Anthony
Hans
HansExample – PSU - after event, meet with top sponsors, deliver pictures with VIP and discuss ROI
