Corporate sponsorship of not-for-profit organizations and events is on the increase – in part because of the changing demands from consumers of the corporations they do business with. But also because of the growing marketing savvy of not-for-profit organizations.

To begin, let’s look at the global picture. According to IEG Inc, a US consulting group, $US15.3 billion will be spent worldwide in sponsorship in 1997. Almost $US6 billion of that will be in North America.

While there are no statistics available for the precise size of the Canadian sponsorship pie, our best estimate is somewhere beyond $500 million. It is likely that at least 50 per cent of this sum is invested in sports sponsorships, with perhaps as much as 20 per cent going to arts and culture. Sponsorship in causes appears to be growing, and the number here may be approaching 20 per cent of the pie as well. The remaining 10 per cent is increasingly dominated by the public sector.

In other words, the pie is large indeed. And there is every indication that it is growing.

The value of sponsorship

Particularly in the last five to ten years, more and more corporations have come to include sponsorships as a logical and effective component in their marketing mix. These corporations recognize that well-constructed sponsorships can provide highly effective ways to present corporate messages – whether the message is primarily a sales/marketing one or a community relations one.

Sponsorship is not charity

What many of the shrewdest of these organizations have discovered is that corporate sponsorship is very different from corporate philanthropy. While the lines remain blurred in some organizations – corporations, non-profits, and others as well – the fact is that sponsorship is not charity. It does not come from the donations or philanthropy budget. To borrow a definition from Sylvia Allen, a sponsorship colleague in the US, sponsorship is “an investment, in cash and/or in kind, in return for access to exploitable business potential associated with an event or a highly publicized program.”

And like any business relationship, the successful sponsorship requires clear objectives on both sides, candor between the partners, and nurturing over time.

So where do you begin? Any not-for-profit interested in (at least) investigating sponsorship begins by defining what is available within the organization that is “marketable”. Start by creating an inventory of every benefit you could potentially offer a corporate sponsor. This doesn’t mean that every item on the list will be offered; it does mean you will begin to appreciate how much you have that will attract a sponsor.

Push the envelope

Some benefits are obvious: every sponsor expects recognition in an event programme. So go as far beyond the obvious as you can. This means, for example, thinking of every benefit that exists just because your organization is what it is. In the case of one cause-related organization, this means literature distribution opportunities at all 23 of its divisional awards dinners – close to 5000 qualified prospects to the right corporation. And don’t overlook the intangibles: if your organization is known for its quirkiness, if your event is in its 25th year – association through sponsorship can be extra attractive to the right corporate sponsor.

Under the intangibles category, remember that the opportunity to build relationships with fellow sponsors can be a significant, albeit unmeasurable, benefit. In the case of one large bank, the opportunity to have its people meet and mingle with well-placed individuals in a national food chain was very attractive. So if you already have one or more significant corporate backers (in sponsorship or through a donations budget), add the opportunity to associate with them on the list of benefits you develop internally.

Judith Barker is publisher of The Sponsorship Report and consults with not-for-profit organizations interested in exploring their sponsorship options. She can be reached at (416) 466-4714.