When it comes to nonprofit events, success can be measured in many ways. However, for most nonprofit leaders, financial success—specifically how much money was raised—is the ultimate goal. To achieve financial success, securing sponsorships from companies and individuals to help offset event costs is essential. Make sponsorships a central focus of your event planning strategy.
Proven Strategies for Sponsorship Success
Whether your event is a gala dinner, conference, auction, golf tournament, concert, or something entirely unique, securing sponsorships generally follows a similar process.
Start Early
Time is your best ally. Nonprofits often compete for the same pool of philanthropic funding, so planning ahead is crucial. Aim to have a fundraising plan in place at least a year before your event, and work to secure sponsorships four to six months in advance.
Identify the Right Sponsors
Tailor your sponsorship outreach by aligning your organization’s mission with potential sponsors. For example, an athletic apparel company might be an ideal partner for a youth sports tournament, while a local grocery store could be a perfect fit for a food bank fundraiser. Focus on sponsors whose values and target audience align with your event.
Leverage Your Team’s Network
Building a strong team with community connections can significantly improve your sponsorship efforts. Encourage board members, executives, and volunteers to tap into their personal and professional networks to identify and approach potential sponsors.
Ensure your ambassadors are well-equipped with materials that outline the benefits of sponsorship. Highlight key attendee demographics, including where they live, their age, gender, and spending power. Present this data factually—honesty builds trust.
Maximizing Sponsor Value
Sponsors typically support nonprofit events in exchange for exposure to your audience. Offer various visibility opportunities, such as featuring their name or logo on event materials (e.g., signs, banners, brochures, tickets, newsletters, or programs) and recognizing them verbally during the event.
To cater to sponsors of different sizes, create tiered sponsorship packages. The more a sponsor contributes, the more prominent their visibility should be.
Additionally, invite at least one company representative (and a guest) to attend the event. This provides an opportunity for them to connect with attendees, build relationships, and better understand your organization. For larger events, such as conferences, consider offering sponsors speaking opportunities to maximize their engagement.
Building Long-Term Relationships
Sponsorships shouldn’t be a one-time transaction; they should mark the beginning of a lasting partnership. After the event, consider involving the sponsor’s employees in your organization through volunteer opportunities, such as a company-wide service day.
When planning future events, approach your sponsors early to continue the relationship. Satisfied sponsors are often eager to support nonprofits that deliver value and align with their mission.
Be Mindful of Tax Implications
It’s important to note that sponsorships can sometimes be classified as paid advertising by the IRS, which may subject your organization to unrelated business income tax (UBIT). To avoid potential issues, consult with your tax professional at Accavallo & Company LLC to navigate these rules and maximize your sponsorship opportunities.
