This article appeared previously in Canadian FundRaiser

No one knows how big the sponsorship scene in Canada is, and even sponsorship guru Judith Barker, editor and publisher of The Sponsorship Report, is not quite sure. No organization is collecting information on sponsorship in Canada, she points out, but based on research done in the USA and Europe, she estimates that sponsorship spending in Canada this year will be in the $500-$700 million range.

Judith defines sponsorship as ‘an investment in a nonprofit organization (of cash or other valued goods or services) by a corporation in exchange for commercial benefits’. “It’s a fairly competitive scene,” she said, addressing the last Toronto NSFRE Fund Raising Congress, “where nonprofits are often competing with for-profit organizations such as sports festivals”.

‘Competitive’ may be an understatement. Bell Canada, for example, receives 9,200 requests for either philanthropic or sponsorship support each year, according to its associate director of communications, Ruth Foster. She points out that Bell faces a major challenge in dealing with these applications, and making the difficult decisions concerning which to support and which to turn down, while striving to get good value for its sponsorship investments. Overall, she points out, the objective is “to connect to the things that matter”, and express Bell’s corporate social responsibility through sponsorship, at the same time doing everything possible to maintain its brand equity.

Criteria for sponsorship applicants

Bell Canada, whose 1998 philanthropy and sponsorship budget was $11.7 million, ranks in the top half-dozen Canadian corporate sponsors. Operating in Ontario and Quebec, it spent $3.4 million of that total on sponsorship of nonprofit sector activities. Not surprisingly, given the flood of applications it receives, it has developed a set of criteria to apply in the process of determining where to provide its support.

First, says Foster, the applicant must be a registered charity: Bell does not sponsor individual athletes, individuals who simply have an idea or cause they wish to promote, or business launches. If applicable, Foster points out, it will be almost crucial for Bell to have telecommunications exclusivity in the project. The applicant must be financially sound, and Bell will be strongly impressed by organizations with low administrative costs which can offer a partnership that will fit its corporate vision and strengthen its position in the niches it wants to occupy.

A key question for Bell, and for many other potential sponsors, says Foster, will be, “Is it a unique made-in-Canada concept?” Bell, for example, found it easy to respond positively to a sponsorship request from Project North at Toronto’s Sunnybrook Hospital, in which doctors in Toronto can use advanced telecommunications technology to diagnose patients in northern Ontario.

No-one meets all the criteria

Other questions high on Bell’s list of concerns: “Is it likely to attract positive public attention?”, “Is the applicant a Bell Canada customer or potential customer?”, “Does this proposal present an opportunity for a commercial return for Bell?”, and “Will there be a role for Bell employees to play?” No organization, Foster points out, will ever meet all of the criteria, “… but the more ‘Yes’s, the better your chances.”

What can a sponsor-hunter do to improve their chances of success? Aside from striving to address – and meet – as many of the criteria as possible, Foster says, remember that many of the corporations you are approaching are overwhelmed with proposals, and try to offer them a unique idea in a new niche. Offer lots of exposure, and strong, imaginative publicity support. And if you’re already working with Bell, try to encourage it to expand its support.

Remember, Foster warned the NSFRE members, that there are many reasons for a refusal, and a large percentage of them are likely beyond your control, so keep trying. Don’t be so discouraged by a refusal that you give up. Once you are working together, “Honour your commitments to Bell. And remember,” she added, “that corporations talk to each other about sponsorship applicants.” Finally, don’t hesitate to ask for referrals to other potential sponsors, or to a sister-company.

You don’t need an ‘in’

There are some important traps for sponsor-seekers, as well. Don’t, for example, says Foster, ask for free telephone service (it will never happen), or use government cutbacks as the reason for your request. Bell’s response will depend on the merits of your proposal, not on the depth of your plight. Don’t feel you need to know someone at Bell, to have an “in”, to support your proposal, and never go to the president or CEO first.

Keep your proposals succinct, Foster suggests. Be creative, but don’t spend too much on presentation, or be too ‘cute’. At the same time, she said, don’t get too ‘high-tech’ and send it in on diskette or VCR without a print version.

Never assume that your project is “too small for us”, Foster assured her listeners, or on the other hand, “that our past support will continue.” It’s crucial, she stressed, to keep in touch with Bell and keep it up-to-date during the period in which it is providing support … and even beyond. And of course, never forget to say “Thank you,” both verbally and in writing.

Don’t threaten … or insist on a face-to-face

Like the need to say ‘Thanks’, it may seem obvious at first glance, but the primitive level of marketing awareness of the Canadian nonprofit sector was underlined by the fact that Foster found it necessary to remind her audience that applicants should not “threaten to go to my president or CEO, or to another corporation that has indicated an interest.” Listen carefully, she added. “‘No’ means ‘No.'” And don’t think that you can insist on a face-to-face meeting. In spite of all the advice you may have had to the contrary, you will likely have to submit your proposal in writing.

Personalize your proposal, she stressed, and do your homework about Bell. Offer proposals that make commercial sense to Bell Canada. And finally, never forget the fact that at the end of the day, “well-executed and successful sponsorships are as important to the sponsor as to the nonprofit.”

How much to charge?

At World Wildlife Fund Canada, according to David Prowten, its director of corporate marketing, the goal is to find and develop multi-year relationships with appropriate organizations in which everyone involved understands that while they may be modest in the early years, with time and success, the fees will rise. At Big Brother & Sisters, where sponsorships are mostly program-related and delivered through its extensive network of local chapters, fees are all over the map.

The price-setting process begins at BB&S, according to marketing director Bruce MacDonald, with a careful look at the costs, the benefit package and the profit margin desired. Ann Rosenfield, director of development for the AIDS Committee of Toronto, considers the demographics involved, the current relationship with the sponsor, and the organization’s track record. The key factor in the calculation, however, according to Prowten, is “who is the audience, and how many will you deliver?”

What about In-Kind support?

According to Rosenfield, the AIDS Committee of Toronto values in-kind sponsor support at 50% of its value, “but only if we need what you’re offering!” BB&S, on the other hand, gives it full value and equal recognition to cash. “Don’t forget, however,” Judith Barker points out, “that if it doesn’t actually reduce your budgeted expenses, you should think about it very carefully before proceeding.”

What impact does market competition have on pricing?

The competition is a real factor for Rosenfield. “We consider it when setting prices,” she says. “Walkathons are, for example, less attractive to a sponsor, because they’re so much more common. Once you know you can deliver the market they want, however, you can draw a line.” David Prowten agrees that you may have to be more flexible price-wise in the early years, when you are building your event’s reputation.

It’s always a challenge to know when to introduce the question of price. In the case of Big Brothers & Sisters, Bruce MacDonald uses “instinct,” but, he says, “we don’t even discuss it until there is a great meeting of minds and a clearly-perceived shared fit with the sponsor.” And for Ann Rosenfield, that moment of truth “only comes after we have explored all of the potential deliverables that may be of value to the prospective sponsor, such as employee involvement – speakers, publicity, logo and product displays, access to our client list, networking, association with our organization …”

What about exclusivity?

Sponsorship exclusivity is a negotiating point for the World Wildlife Fund, but, says Prowten, “we try to avoid it.” Rather, he strives to work closely with the organization’s current partners, and always give them the first right of refusal. Once exclusivity does enter the picture, he points out, it becomes absolutely mandatory to define the various sponsorship categories carefully, clearly and precisely. Like WWF, Big Brothers & Sisters doesn’t like to offer exclusivity, but, says MacDonald, “when it does come up, we make it clear that exclusivity will be a separate negotiation that will add substantially to the cost.”

What are the corporations’ big concerns?

A big part of the relationship, for Ann Rosenfield, is getting the corporation to trust her and her organization. Beyond that, they’ll tend to want to know about the competition. Who else runs a Golf Classic? When? Where? How will it affect our show? You’ll have to be ready to demonstrate, she stresses, that you have done your homework.

Operational details aside, however, the corporations have some more fundamental goals. As Andy Murie, executive director of MADD Canada, sees it, the relationship must be win/win. Kathy Thomas, director of corporate development at Kids Help Phone, looks for good communications, effective monitoring throughout the program, and shared goals. And Linton Carter, donations manager at the Hudson’s Bay Company emphasizes “trust, honesty and good communications as the foundation of a good long-term relationship.”

Ultimately, however, Rosenfield concludes, it comes down to whether or not you can convince your sponsor that you can control your event to deliver the target value to both their organization and yours. David Prowten agrees, urging sponsor-seekers to “Deliver more value than you offer.” And for Bruce MacDonald, it’s simply, “Deliver on your promises.”