Q & A with Barbara Harrington of Sponsorship Network

Sponsorship Network helps organizations create and implement well-crafted sponsorship plans that generate revenue. As a sponsorship broker, founding partner Barbara Harrington plays the ultimate middleman, in touch with both the nonprofit and corporate perspectives. We asked Barbara a few questions about securing sponsorships:

Before seeking sponsorships, what top three things should nonprofits consider?

1. Determine who is going to sell the sponsorship package. Someone will be responsible for delivering the pitch to potential sponsors. Will it be the development person, the executive director, or a board member? Clarify who is going to champion the sponsorship efforts, then test the waters with a small proposal.
2. Properly value your sponsorship packages. While philanthropic donations typically offset direct costs, and requests are based on what it costs to run an event or program, marketing sponsorships are generally valued similarly to paid advertising. Sponsors are concerned about what exposure they receive in exchange for their sponsorship—the return on investment (ROI). Clearly understand the difference between sponsors and philanthropic donors, because they place different values on exposure and perceive benefits differently. The value of your sponsorship package will depend on to whom you are making your pitch.
3. Ensure that everyone is on board in terms of delivering promised benefits to company. Is everyone promising the same thing? What will be required of program staff to deliver the benefits, and are they informed and prepared to deliver the benefits you've promised? We only have one chance to make a great impression, and if benefits aren't delivered as promised it can damage your organization's reputation.

Are there other factors that should be in place before embarking on a sponsorship program?

Here are some of the first questions I ask organizations considering a sponsorship program:

• Has there been a directive to diversify funding? When everyone is in agreement, there's a greater chance for success.
• Do you have a Statement of Excellence? We advise organizations to pursue companies with a good reputation in the community. Identifying strategic partnerships can elevate your organization's visibility and prestige in the community.
• What will you offer the company? Are benefits defined and are you able to deliver what you promise? And if you think you don't have anything to offer a sponsor, do a little research. It's often a matter of 'inventing' a campaign or other deliverables. Good news is - you don't have to 'invent' a special event. Special events offer interesting sponsorships, but they are not the only way to get started.
• Is there a clear link between efforts and mission? The company itself may not provide a logical connection (great if it does!), but there needs to be a clear link to WHY you are pursuing the sponsorship. Will it bring in revenue, or tag specific advertising?
• Do key decision-makers understand the difference between marketing sponsors and philanthropic donors?

Do you have any suggestions for approaching sponsors during this economy?

Focus on sales benefits. According to the consulting firm IEG, corporate sponsorships with nonprofit organizations were up 4% in 2009. Generally, the return on investment [for the company] with sponsorships is much higher than with traditional advertising because it offers a way for companies to get straight to their targeted demographic. Organizations can utilize their own research and reporting to identify statistics that help them make promises on exposure and ultimately sell more sponsorships. Now more than ever, you have to deliver.

When it comes to sponsorships, is there one universal principle that all nonprofits should employ?

Nonprofits need to understand what's in it for the company. And I don't mean by way of compromise, but to save themselves money and time. If you understand what's in it for them, you understand what prospects you should spend your time on. And take a look at who in the company you are working with. Different departments within a company have separate pots of monies and distinct objectives. If you understand and tailor your benefits to their different needs, you can build on existing relationships and tap into different sources in the same company.

Don't miss New Rules for Engaging Marketing Sponsors with Barbara on June 15, 2010.

Special Offer!

Register by May 26, 2010 and be eligible to win one of two Sponsorship Makeovers valued at $500 each. You'll have an opportunity to connect with presenter by phone to share your specific sponsorship challenges. Recommendations will be shared during the webinar.