Charities, non-profit organizations, and independent organizations are always in need of funding. Donations given to such institutions are often a large source of their income for operations and causes. There are generally two ways to receive donations – one is through philanthropic means; the other through business partnership or sponsorship.
One versus the other
Philanthropy is generally seen as the first means of giving when it comes to charitable foundations; sponsorship on the other hand, usually comes as an alternative. Although giving is generally thought as the much preferred method of funding; it may come as a surprise to know that sponsorship for non-profit institutions is a more rewarding and productive means of support for both parties.
Corporations typically have two main business reasons for sponsorship; and these are tax savings and public relations. Although any form of help or support generates an overall positive effect, it is mainly through these two reasons why sponsorship is pushed on by businesses.
In terms of satisfying both parties – sponsors get the chance to associate themselves with a charitable institutions and create a chance for them to acquire tax breaks, and at the same time expose their company name to the public. Sponsees, in this case the non-profit organization, are able to increase the level of support given by their current sponsors; and at the same time open new ways in gaining capital.
With philanthropy, the means of exposure and recognition is fairly low in percentage. Usually recognition is through annual reports that generate a little fanfare. Sponsorship, however, gives itself an amount of exposure that highlights a new partnership for the public to see. Through this publicity, the aim for awareness is reached by both sponsor and sponsee.
Some examples where sponsorship thrives in donations and public awareness are the following: A bookstore may donate books to an orphanage and at the same time let the public know about the store to gain customers. A clothing company sponsors specially designed t-shirts for volunteers to wear when there is a charitable event; and through wearing the t-shirt, the company not only helps in donating, but also makes the public aware of their brand.
Sponsorship for charities is basically seen as a win-win partnership. One helps the other through different gains and results. It is also through sponsoring, that charitable institutions have a lighter load on figuring out the means for which to get resources. For example, when an event is sponsored by a corporation, the charity wouldn’t have to worry how to provide the food and drinks needed since it would be covered by the sponsor’s funding.
By supporting through the use of sponsoring, a business uses their budget for advertising and marketing, leaving their funds for philanthropy (if there is ever) alone and untouched. Through using such a budget, the business is able to use the costs as tax-deductibles from their expenses. This way, sponsorship helps in letting the business be cost-efficient.
It should not be seen, however, that philanthropy is a less useful means for support. Donations and funding of this nature is often praised and well-advocated by the public. It is only shown that sponsorship has a more business-side in handling contributions and help to other organizations - where they see it fit to practice a give-and-take method; and see it best to have profit-producing ventures.
Just as sponsorship is basely defined as a marketing tool for organizational or individual support; so is ‘child sponsorship’ denoted as a means to aid a young individual, usually through financial and/or educational sustenance.
The children who need assistance are usually from ‘developing countries’ which, as most often is, lack the proper resources to sustain proper living. Some of the top countries that benefit from child sponsorship include Africa, India, Afghanistan, Indonesia, and Vietnam.
It is not, however, only the developing countries that receive child sponsorship, but also those of develop ones. Even powerhouses such as the United States have children support organizations that help out the young through means of donation. This denotes the diversity and span in which sponsoring children and young adults are applied.
Saving Lives
There are basically two ways in sponsoring the young – either through individual or organizational means. As individuals, this is directly giving out help to those who are in need of it. As organizations, there are specific institutions that act as the ‘bridge’ for sponsors and child sponsees, where they find the best possible candidates for support and most efficiently utilize the ‘help’ donated by sponsors.
But how does this sponsorship save lives? The number of ways in which this kind of support assists in the improvement of living and prevents loss of life is beyond counting. In developing countries, areas that have been witness of war, economic ruin, political turmoil, natural disasters, and oppression (most often girls and women) – the donations that are given address these issues and focused on the improvement of a child’s life.
In more specific ways, individuals and organizations work with the family of the child and other community members to develop the ability of that community to ‘take care’ of itself. The child that is given assistance benefits from programs that enable him/her to attend and succeed at school, provide needed medical care and orientation in hygienic living.
Child sponsorship not only helps the children, but their family as well. Families are given the knowledge on how to improve their lives by economic programs that provide parent trainings which teach them how to properly support themselves and their children. These programs are most often through proper child sponsorship organizations. Some organizations that practice these applications of programs are Save the Children, UNICEF, and Food for the Hungry.
The Sponsor’s Role as Hero
Of course when one helps another, it is always a two-way effect. The one helped and the helper, although in different manners, are affected. Sponsors have the opportunity to make a difference in the lives of children by giving out support.
A very important point to understand that the assistance given, whether financial or otherwise, is not only a physical act on economical or community improvement. In its core, child sponsorship is giving hope to those who need it. It is letting the community and the children involved know that they have a chance in living a good life. This point is essentially the most important gift that sponsors (most often unconsciously) give.
As the chain reaction of giving leads to saving lives, sponsors become heroes in the sense that they have helped. Their assistance, however meagre, provided the chance for life improvement by allowing the children and communities involved the access to opportunities they’ve never had.
One integral part of creating the right kind of exposure for your business is through the use of media. Through radio, television and the like – product and/or brand circulation becomes widespread and typically popular.
This use of media as a medium for brand dissemination is called media sponsorship. The challenge of setting up and publicizing an event are what marketers always face. With limited budgets, the reality of buying airtime exhausts the resources of an organization, most especially to those of which have small businesses.
It is through media sponsorship that an organization gains the opportunity to get their event aired through media forms. This kind of support allows for stretching a marketing budget, print placement and more commercial airing coverage. Most often, media sponsorship is applied through the following – radio, print, television, and outdoor advertising.
How to land a media sponsorship
In order to get a media sponsorship, several measures have to be considered before reaping the benefits of exposure through media. First, there is a need to find out who are the eligible media partners one can work with. When choosing a partner, it is essential to look for an outlet that has a similar target audience as the business.
If the business is locally established, the best candidates for media sponsorship would be through local radio and television stations. Finding a common ground with sponsor prospects is beneficial in that it would align with a company’s vision and business interest.
It also serves to be cautious with the type of media sponsorship an event may have. Questions to ask in evaluating a sponsor are typically the same with that of corporate sponsorship. These questions may include the type of exposure that will be given; whether or not the publicity will result with a positive or negative feedback; and the like.
As with every lookout for sponsorship, a proposal is needed to be developed and passed to a potential media sponsor. It is with the sponsorship proposal that a donor will look and decide whether or not a business and/or its event is ‘worthy’ of a sponsorship.
Lining a business or event up with a media sponsor is considered as a powerful way to attract attendees, volunteers, and/or donations. In order to stand out, the time it takes to build a good proposal may be extensive, but in the long run, will also prove to be most beneficial.
It is also important to tickle a media sponsor’s fancy in order for them to sponsor an event. The reason for such is that media is everywhere, and every opportunity that can involve the media’s participation, will almost always be sponsored.
Media sponsorship’s goal
One has to also note that media will use sponsorship as their own gain. One reason is because participation in event leads others to see the media as fully-informed, and earns a good image reputation in the community.
Another note is that the media considers any publicity as good publicity. Since they are the leaders in television and radio - the opportunity to spread products of the media is made possible.
As with advantages to the sponsee, media sponsorship helps save money for the sponsee since advertising will be taken care of through radio, television and/or print. This will also give the sponsee more credibility since it is sponsored with a ‘public’ organization in which people will come to associate one with the other.
Let’s say you’re a budding athlete, with top ranking and stats as a tennis player. You have what it takes to become a world-class sports player in your field but have limited amount in terms of funds. The answer, as most would suggest, is to get a corporate sponsorship.
As sports are one of the major kinds of areas that corporations use as a market for brand exposure, you’d think that sponsorship would be a cinch. The case is that its not. Obtaining a corporate sponsorship is not as easy as 1, 2, and 3. Reaching your dreams as a world-class tennis player, aside from the skill and talent, also needs a little tinkering in ‘selling yourself’.
Get noticed
How exactly can you put your skills and talents ‘out there’ in the market for potential sponsors? Below are the ways:
The right kind of resume
As with every type of job, building a resume is an important part in getting employers to notice you. This is the same with corporate sponsors and the type of athlete they are looking for. The amount of hard work, training, way of playing will be the pinnacle points that sponsors will look for. The ‘package’ in which you come in is very important and the only way to be considered is that if your ‘accomplishments’ are worthy of review and consideration.
Depend on yourself to do your ‘advertising’
Nothing comes easy, and this includes wanting a sponsorship. You have to earn what you want, and having to be your own agent is a crucial step. Depending on someone else to do your ‘contacting’ will not result in the way you want to be exposed and seen.
Get in touch with companies; write sponsorship letters; invite them to see you play – those are what you should do to get their attention. When a company sees the dedication and amount of perseverance one takes in wanting a sponsorship, it won’t be long before they offer it you themselves.
It is in this area that you will learn how to face rejection and deal with issues that address your ability as an athlete. Don’t forget to always be positive in all dealings. Starting out is always the hard part, and once this obstacle is overcome, everything else will be a breeze at doing.
Act as your ambassador
Let’s say you’ve landed a small sponsorship and received a small amount of support. This is good as that sponsorship often starts small. It is important to remember that ‘keeping an A is harder than earning an A’ – which also applies to sponsorship.
Always keep in touch with your sponsor, letting them in on updates regarding your training and athletic status is very good. Through this practice, doors of bigger sponsorship opportunities will open because the closer you bring yourself to your sponsors, the bigger the chance for more lucrative support.
Always challenge yourself
It is not only through contact and appeal that makes sponsor continue and offer support and backup. It is also through your performance as an athlete that ultimately will bring in the ‘big bucks’. Always upping your game to become better and eventually number one is an important aspect in all sponsorships.
The need to be on top, and the need to be ambitious gears one into availing all the support since sponsoring someone with that kind of attitude, talent and skills is a perfect equation of give-and-take between sponsors and sponsees.
You own a business and a chance of getting sponsored falls into your lap. You think it’s an opportunity of a life-time, it’s not everyday some other organization wants to sponsor your venture. Of course, as with all chances such as this, the excitement of landing a seemingly good deal takes over.
But before you actually take on the offer of sponsorship, there is a need for proper evaluation on your part. Through this practice, you are taking a look at the aspects of the offer and the arrangement of agreement that is prepared for your business. Do not be drawn immediately by the publicity your business will receive, for all sponsorships include an amount of exposure.
It is best to choose carefully when being offered a sponsorship. Elements of relevance and compatibility are very important for your business’s image and market longevity. To give the proper evaluation, below are questions to ask.
Questions that need to be asked
Will this add more customers/clients/buyers?
Adding customers means increasing sales. The name that sponsors you has no bearing whatsoever if the result it yields neither brings or adds customers to your doorstep. It would be a total waste of time, money and effort on both parties if this happens.
Considering the target market that the sponsor also targets should be an insight into the type of customers should also be compatible with your business. If this is mismatched, it’s better to pass on the offer.
Am I the only business being sponsored by this company?
Big time organizations sponsor many events that house different businesses. Having your business sponsored by such companies mean that you will be showcased with other sponsored businesses. By this, association with the other businesses is created. Decide whether or not you want your business to be attached to other sponsees; and see if this will prove to be beneficial or otherwise.
What kind and how much publicity will I get?
Good and great exposure to the public is what all want to obtain. This is also the ‘sales pitch’ of sponsor offers – a big amount of publicity. As will all sales pitches, it is important to research if this is true and the investment you decide to make will reap benefits. Simply put, getting your money’s worth and equal levels of give-and-take between sponsor and sponsee are what you’re aiming at.
What is in the ‘fine print’ of the offer?
Don’t go on jumping in with just a handshake and word of promise. A detailed and lengthy contract is the best way to protect your business when the need arises. It is better to prevent something bad happening than finding a way to resolve it.
With contracts and written arrangements, be sure to look over every aspect and fine print. It is usually in the detail that loopholes may be fixed and that anomalies eliminated for both parties. The target is a win-win situation, and through contract evaluation this is possible. Balance is what should be attained.
What other companies have similar arrangements as this?
Before signing on with the offer of sponsorship, added research on organizations with the same interests is a good practice. This gives your business an opportunity to compare the offers and see whether you are doing what is best for your venture.
In the fast changing times, where one day you’re ahead of your business, and the next you’re struggling to make ends meet, the key to knowing how to stay on top of things is of the utmost importance. You’ve heard of partnerships, mergers, business benefactors and the like, but do you really know what they are, and which will be a good add-on to your business?
Having know-how on things will always be to your advantage. Getting on top will require ample amount of information and use of tools that are essential to product/service circulation. One marketing tool that has been around for a long time, but only recognized just recently over the years is corporate sponsorship.
A Tool for Endorsement
Endorsements are a type of support that is considered to be a very powerful way to get ahead of the business world, and one of the best way to utilize this support is through corporate sponsorship. This form of sponsorship is a two-way relationship between two business institutions where the schema has one who gives money (financial backing), and the other advertises the name.
Whether in a large or small-scale dealing, corporate sponsorship helps business names and their particular product or service to be exposed. Good examples are the advertising of sports labels through endorsing athletes to use the label’s products.
Brands such Nike, Adidas, and Fila partner with either a star athlete or team, giving them products to use which will in turn expose the brand name to the public when commercials are aired or when there are games broadcasted on television and the internet.
The role of corporate sponsorships in events
Typically, most corporate sponsorships are tied to a specific event. These events are diverse and may include trade shows, marathons, basketball games, academic competitions, tournaments, etc.; and all of which offer big opportunities for corporate sponsoring.
Corporate sponsoring does not only include financial or product backing on the sponsee, but entails a few other things that should be considered. One is the relevance of the sponsor and sponsee – whether or not a potential partnership is good for both parties.
A potential sponsor should have a corporate culture that is like that of the event. Mismatching events with sponsors will only confuse the public and often not a good image result between either of the two parties. For example, you can’t have an Animal Welfare organization support an event that promotes the use of fur. To do that would be contradicting, financially wasteful, and overall a ‘suicide’ on both the organization and the event.
Going for corporate sponsorship
Most business organizations consider and apply corporate sponsorship due to sole fact that it exposes their business name and purpose. This exposure is considered to be far reaching compared to other forms of advertising and the percentage of cost is usually smaller to those of other tool use.
When a sponsor and sponsee are the right match and deal under the right circumstances, the overall result will always benefit both parties. Both will be given good exposure, and the name that is advertised will be broadcast far and wide in every aspect.
Having corporate sponsorship also emphasizes that a certain individual or organization is serious in its dealings and is committed to its chosen field. The fact that a business went for sponsorship makes it know that it wants to excel and be known to the public so that it can propagate in the best way possible.
There isn’t a great issue over which fairs better between sponsorship and advertising. Both are marketing tools that strategically apply to different situation. There are however usual times when a business is faced with choosing between both tools. These times usually are a point of exposure as to which tool can give more and help increase a brand’s visibility. This arena is where sponsorship takes over.
What sponsorship accomplishes better than advertising is in the establishment of qualitative attributes. These attributes include brand image towards consumers, generating awareness, and consumer’s choice of such brand. On these attributes, sponsorship has more lead on enhancing them, which advertising falls short of.
Sponsorship’s winning features
With sponsorship, as compared to advertising, the following feature it builds includes the following:
• credibility – refers to the integrity that sponsorship builds
• exclusivity – the form of differentiation that sets clients into high status
• image enhancement
• relevance to lifestyle
• prestige that it offers
There are other points that make sponsorship a winner; and these are also quantitative benefits that are not available through advertising. The first of which is having a live audience for product and brand circulation. Sponsorship provides opportunities for on-site sales and sampling, customer feedback, surveying, sales-force interaction and product testing – all of which involve the participation of an audience. Through live product presentations, the exposure is greater and the promotion of brand and product names is at a rapid pace.
When we compare sponsorship and advertising, one mode to look into is how interaction is done. With advertising, interaction is one-way and generally a monologue. On the other hand, sponsorship is more like a dialogue where the opportunity of a company to have live exchange with its target customers is highly practiced.
As with interaction, product sampling is another plus to sponsorship. Events that are sponsored allow people to have on site trials on products. This way, awareness of a certain brand name or service is heightened. Examples on-site trials include food sampling, test driving, official clothes worn in the event, etc.
With sponsorship, an organization’s name becomes associated into a sponsored event’s actions unlike that of advertising. This means that sponsorship is able to surpass the medium of media and place itself in the environment where everyone can see it, For example, when sponsorship is incorporated in movies; the audience has no escape in seeing the brand or logo being promoted because it is part of the film. They can’t just eliminate a scene like changing a channel on TV; they have to sit through the film and take in everything that comes with it.
Lastly, sponsorship provides entertainment to its client. How? This is done through the events that are sponsored. When the word ‘event’ comes to mind, it is always a happening that does not come everyday. It is a break from the everyday routine that clients have. With advertising, nothing is disrupted from normal life. Everyone is accustomed to see bill boards, ad placements and commercials.
With sponsored events, the setting is different and the aim is to provide an avenue for people to interact with the business through a social activity. Events also make great places to have informal sales and networking; and with the chosen venue, which is most often a hospitable one, the event becomes desirable and unique to lounge in.