Sponsorships usually imply that everyone benefits, both the company that pays the activation and the organization that benefits from the donation. These are business transactions, and they must be treated as such from the start.
Shaun G. Lynch of Adventum Philanthropic Marketing and the Association of Fundraising Professionals (AFP) says sponsorships must be negotiated as business arrangements. Lynch underlines the essential bargaining factors of a sponsorship arrangement that need to be considered:
- Don’t let the sponsor’s commitment to a cause-related marketing tie-in be limited.
- Keep the right to spend sponsorship money on what the organization needs.
- Specify how in-kind payments will be valued in advance. Remember that the sponsor pays less for items and services than customers do. Avoid a dollar-for-dollar assessment.
- Clearly define sponsors’ categories. For example, instead of a single financial services sponsor, look for a bank, credit card, investment advisor, and insurance firm.
- Control the distribution list. (Database)
- Define the costs that the sponsor is responsible for.
- Define the sponsor’s fulfillment obligations. These could involve providing samples to the event, sending inserts for promotional packages, setting up tables or audio-visual equipment, and staffing the sponsor’s booth.
Learn more about sponsorship and fundraising by attending the June 20 Sunshine Certificate in Nonprofit Management class on Campaigning to Potential-Part I (Sponsorship and Fundraising) on Monday, June 20, 2022, from 5:30 to 9:30 pm
Source: https://www.thenonprofittimes.com/npt_management_tips/sponsorship-are-negotiated-business-deals/
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