Corporate Sponsorships: Perspectives From Both Sides of the Table

Hans VanDerSchaaf

Portland State UniversityDirector of Corporate and Foundation Relations

hansv@pdx.edu

Anthony Petchel

Oregon Museum of Science and Industry

Director of Development

APetchel@omsi.edu

Objectives

Trends in corporate giving

New tools in your toolbox

Definitions

Corporate Giving

Company-Sponsored Foundations

Corporate Direct Giving Programs

Corporate Sponsorships

• Discovery/Qualification• Prospecting/prospect research• Cultivation• Stewardship

Moves Management:

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?

Source: Giving USA 2012 Executive Summery

Sources of Giving

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.

How is corporate giving distributed?

Giving in Numbers, 2012 Edition, Committee Encouraging Corporate Philanthropy,

http://philanthropy.com/article/Big-Companies-Gave-4-More/132989/

2013 Trends

Give More71%

Give Less2%

Stay The Same27%

2012 Corporate Giving Survey

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)

The Process of Building Corporate Relationships

The key to success: Building and maintaining long-term relationships with your donors and potential donors.

Prospecting/Discovery/Qualification

Corporate Perspective

• How do companies like to be approached?

• What turns them off?

• Why won’t they return my call. . .

Nonprofit Perspective

• How do you find/discover potential new donors?

Who are the decision makers?

Typical Decision Makers

President/CEO

Senior Managers

Board

Marketing/PR Directors

Corporate Foundation/Giving Manager

Prospecting/Discovery

Scanning Events Start in your own backyard

Don’t for get LinkedIn

Looking Everywhere

Qualification

How do you qualify?

Prospect research

Meeting/conversation

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

Qualification: Initial Meeting

Do Not• Ask for money on first visit• Come unprepared• Forget to follow-up

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

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

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

Cultivatio

n ideas

Relationship Building/Cultivation

Tip:

If you want Mone

y, ask for

Advice.

If you want Advic

e, ask for

Money.

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

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?

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

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?

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.

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!

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?

The “Yes"

Congratulations! You

secured the sponsorship! Now what?

Sponsorship Agreement

Follow-through

Follow-up

Repeat

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

The 4 faces of “NO”

•To this project, but perhaps anotherno•Not now, but perhaps laterno•To the amount asked forno•Forever: the real NO NO

Pet PeevesErrors (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

The cycle never endsDiscovery

& Qualificati

on

Prospecting &

Prospect Research

Cultivation

Stewardship

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?

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.

Recap

•It’s about themMust be donor-centric

•Appearance matters Be

professional

•It can take 3-5 years Think long-term

•The cycle never stopsIt’s a year round process

Questions

References & Resources

http://www.grantspace.org http://www.adlercolvin.com/pdf/revenue_generating_a

ctivities/Website_Resource_Corporate_Sponsorship_FAQ%20_(00087971).pdf

http://www.afpnet.org/files/ContentDocuments/AFP_Dictionary_A-Z_final_6-9-03.pdf

http://www.aprahome.org/. http://www.triplepundit.com/2012/12/corporate-philan

thropy-trends-2011/ http://philanthropy.com/section/Corporate-Giving/449?

cid=megamenu