{"id":30209,"date":"2022-04-14T12:14:43","date_gmt":"2022-04-14T16:14:43","guid":{"rendered":"https:\/\/www.qgiv.com\/blog\/?p=30209"},"modified":"2022-05-19T15:10:49","modified_gmt":"2022-05-19T19:10:49","slug":"corporate-sponsorship","status":"publish","type":"post","link":"https:\/\/www.qgiv.com\/blog\/corporate-sponsorship\/","title":{"rendered":"The Ultimate Guide to Corporate Sponsorships"},"content":{"rendered":"\n<p>While individual donations make up a large part of every nonprofit\u2019s funding, organizations often need additional sources of support through corporate sponsorship. However, obtaining a corporate partner can feel like a daunting task. You may not be sure where to begin or how to go about reaching out to large companies and businesses to ask for their support. It\u2019s easy to get overwhelmed, and you might get to the point where you wonder if pursuing a sponsorship is even worth it.&nbsp;<\/p>\n\n\n\n<p>Well, don\u2019t worry, we have you covered! Corporate sponsorships often end up being invaluable sources of revenue, and if you\u2019re ready to dive in, we have the ultimate guide to help you along your sponsorship journey.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a corporate sponsorship? &nbsp;<\/h2>\n\n\n\n<p>A corporate sponsorship is a formal agreement between a non-profit and a for-profit business that benefits both parties. Generally, a business provides some kind of support to a nonprofit through a monetary donation or with donated goods and services. In return, they receive increased exposure in the community and tax benefits.&nbsp;<\/p>\n\n\n<p><!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper\" id=\"hs-cta-wrapper-3f3d3172-0e62-4995-a3f2-cb3924b2e980\"><span class=\"hs-cta-node hs-cta-3f3d3172-0e62-4995-a3f2-cb3924b2e980\" id=\"hs-cta-3f3d3172-0e62-4995-a3f2-cb3924b2e980\"><!--[if lte IE 8]>\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/8356283\/3f3d3172-0e62-4995-a3f2-cb3924b2e980\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-3f3d3172-0e62-4995-a3f2-cb3924b2e980\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/8356283\/3f3d3172-0e62-4995-a3f2-cb3924b2e980.png\" alt=\"Check out this Fundraising Fundamentals eBook we made with our friends at  Donorly to keep learning and honing your fundraising skills!\"><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(8356283, '3f3d3172-0e62-4995-a3f2-cb3924b2e980', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the different types of sponsorships?&nbsp;<\/h2>\n\n\n\n<p>Before you start your sponsorship search, it\u2019s important to understand what your sponsorship needs are. To begin with, there are two different types of corporate sponsors you can pursue.&nbsp;<\/p>\n\n\n\n<ul><li><strong>Organization sponsors<\/strong> provide year-round support for your nonprofit. This support may include matching donations to your organization during a fundraising campaign or giving a sizeable donation to a <a href=\"https:\/\/www.qgiv.com\/blog\/capital-campaigns\/\">major project<\/a> your organization is working on.&nbsp;<\/li><li><strong>Event sponsors<\/strong> provide support for a specific event your organization is hosting. This support can take many forms, from donating goods and services to making a financial donation.&nbsp;<\/li><\/ul>\n\n\n\n<p>There are four different ways your sponsors can provide support.&nbsp;<\/p>\n\n\n\n<ul><li><strong>Financial sponsorships<\/strong> are fairly straightforward in that they\u2019re a donation from a corporate sponsor. This could look like giving a general donation to your nonprofit or donating money to make a specific event possible. Matching gifts are another way a corporate sponsor could provide financial support, whether it be a year-round program that matches donations company employees make or for a certain period of time during a specific giving campaign.&nbsp;<\/li><li><strong>In-kind sponsorships<\/strong> are extremely useful for specific events your organization is hosting. An in-kind donation is not a financial gift, but rather a donation of goods or services. This could include allowing your nonprofit to use a venue, having a band volunteer to play at your event, or even <a href=\"https:\/\/selflessly.io\/5-quick-steps-to-start-corporate-giving-volunteering\/\" target=\"_blank\" rel=\"noreferrer noopener\">donating the services of the company\u2019s staff<\/a> during an event.&nbsp;<\/li><li><strong>Media sponsorships<\/strong> give your organization exposure via radio or TV station advertisements.&nbsp;<\/li><li><strong>Promotional sponsorships<\/strong> are similar to media sponsorships, but instead of gaining exposure from a radio or TV station, you\u2019ll partner with an influencer or prominent local leader and gain exposure from their audience.&nbsp;<\/li><\/ul>\n\n\n\n<p>Sponsorships are seen as a win-win partnership between companies and nonprofits. In exchange for their support, your nonprofit will give your sponsors exposure through logo placements on merchandise, logo banners during an event, or provide other perks and benefits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why are corporate sponsorships important?&nbsp;<\/h2>\n\n\n\n<p>If your donations or grants are supporting your nonprofit just fine, you may wonder, do I even need to obtain corporate sponsorships? Well, there are many benefits to finding corporate sponsorships, and they can help your organization thrive.&nbsp;<\/p>\n\n\n\n<p>Partnering with well-respected and well-known businesses can lend your organization credibility and give your nonprofit increased awareness in the community. With corporate sponsorships, you\u2019re often benefitting from large financial donations, which can help you reach fundraising goals more quickly. And with <a href=\"https:\/\/www.qgiv.com\/blog\/write-inkind-appeal-letter\/\">in-kind sponsorships<\/a>, you\u2019ll find that the overhead costs for your fundraising events can be greatly reduced, meaning that more of your donations will go towards your organization\u2019s programming rather than to executing your event.<\/p>\n\n\n<p><!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper\" id=\"hs-cta-wrapper-02398c6a-da09-43f1-b9cf-895c046f572a\"><span class=\"hs-cta-node hs-cta-02398c6a-da09-43f1-b9cf-895c046f572a\" id=\"hs-cta-02398c6a-da09-43f1-b9cf-895c046f572a\"><!--[if lte IE 8]>\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/8356283\/02398c6a-da09-43f1-b9cf-895c046f572a\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-02398c6a-da09-43f1-b9cf-895c046f572a\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/8356283\/02398c6a-da09-43f1-b9cf-895c046f572a.png\" alt=\"Download the Corporate Sponsorship Cheat Sheet and templates and get ready to  reach out to local businesses and major corporations alike with confidence!\"><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(8356283, '02398c6a-da09-43f1-b9cf-895c046f572a', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How do you ask for a corporate sponsorship?&nbsp;<\/h2>\n\n\n\n<p>Now that we\u2019ve covered the basics, it\u2019s time to go out and actually search for your sponsors. The competition can be steep for corporate sponsorships and getting large companies to pay attention to your nonprofit isn\u2019t easy so make sure you have the right strategy.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Search in your community&nbsp;<\/h3>\n\n\n\n<p>To increase your chances of success, start by targeting branch locations of large corporations near your nonprofit. Networking with more local locations can get you in the door, and branch locations may have sponsorship resources you weren\u2019t previously aware of.&nbsp;<\/p>\n\n\n\n<p>Large corporations headquartered in your local area are also a great option for sponsorships. Due to their location, they\u2019re more invested in the local community and will be more willing to partner with an organization that\u2019s doing good in the area. You may already have personal connections to these corporations through your organization\u2019s board members and <a href=\"https:\/\/www.qgiv.com\/blog\/10-volunteer-training-ideas-for-onboarding-all-types-of-volunteers\/\">volunteers<\/a>. Networking is the best way to meet individuals who can help you obtain a sponsorship from these large companies.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Target the right companies&nbsp;<\/h3>\n\n\n\n<p>Check companies\u2019 sponsorship history to know who to target. If you\u2019re seeking a sponsorship from a business who\u2019s partnered with an organization like yours in the past, they\u2019ll probably be more receptive to a sponsorship request from your nonprofit. For example, grocery store chains are usually more likely to partner with food banks in the community.&nbsp;<\/p>\n\n\n\n<p>Be careful with who you propose a sponsorship to. If you\u2019re looking in the wrong places, a sponsorship can backfire on your organization. Seeking sponsorships from companies who don\u2019t align with your mission can reflect poorly on your organization. For example, in 2009, the American Academy of Family Physicians (AAFP) struck a deal with Coca-Cola and received backlash because soft drinks and sweetened beverages are often pointed at as large contributing factors to the obesity epidemic.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Search online&nbsp;<\/h3>\n\n\n\n<p>If you\u2019re still struggling to find corporate sponsorships from these sources, try searching online. Many corporations have corporate giving programs you can apply to online. These programs typically come in the form of matching gifts, but they also often offer <a href=\"https:\/\/www.qgiv.com\/blog\/volunteer-recruitment\/\">volunteer<\/a> grants as well. Many large corporations only sponsor a small percentage of nonprofits, so don\u2019t rely on these sources too heavily when searching for corporate sponsorships.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Try local businesses&nbsp;<\/h3>\n\n\n\n<p>As you\u2019re searching for large corporate sponsorships, don\u2019t forget about local businesses in your community. Your board members, volunteers, and other members of your nonprofit likely have strong ties to small business owners, and many small businesses are eager to partner with nonprofits to boost their profile in the community.&nbsp;<\/p>\n\n\n\n<p>If you\u2019re seeking in-kind sponsorships, pick your event committee strategically. Are you seeking entertainment for your event? Try to find a volunteer who might play in a band. Do you need help with printing <a href=\"https:\/\/www.qgiv.com\/blog\/how-to-promote-a-fundraiser\/\">promotional materials<\/a> and banners? Think of donors that may have ties to a local printing company. With a little bit of strategy, you can cut event costs significantly.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Time your ask right&nbsp;<\/h3>\n\n\n\n<p>When you reach out to businesses for <a href=\"https:\/\/www.qgiv.com\/blog\/how-to-get-sponors-for-a-charity-event\/\">sponsorships<\/a>, make sure you\u2019re asking at the right time. Businesses and large corporations often square away funds in their budget specifically for sponsorships, so asking at the right time will better ensure that you get a positive response. Reach out as soon as you know you\u2019ll need a sponsor for an event and try to time asks when it isn\u2019t a busy season for the company. People will have less time to meet and any emails you send might get lost in flooded inboxes.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What should you include in a nonprofit sponsorship packet?&nbsp;<\/h2>\n\n\n\n<p>Once you\u2019ve identified companies you want to reach out to for sponsorships, it\u2019s time to put together your sponsorship packet and letter. Let your needs and goals inform what you include in your ask, and make sure you have a cohesive strategy.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Personal cover letter&nbsp;<\/h3>\n\n\n\n<p>When you make a sponsorship ask, it\u2019s important to build a personal connection. Explain why you\u2019ve chosen to reach out to this specific company and emphasize how your partnership will be mutually beneficial. If you\u2019ve come across some potential needs from your sponsor in your research, share how you think your nonprofit can add value to your sponsor\u2019s business.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Outline your nonprofit mission&nbsp;<\/h3>\n\n\n\n<p>Sharing your organization\u2019s impact will be an important part of your sponsorship packet. You can present this information however you think will be most effective, but if you want to grab a potential sponsor\u2019s attention, try to make this part of your sponsorship packet as engaging as you can.&nbsp;<\/p>\n\n\n\n<p>Let your potential partner know about your programming, and present information with colorful graphs, attention-grabbing numbers, and powerful images that showcase your <a href=\"https:\/\/www.qgiv.com\/blog\/4-storytelling-tips-from-a-master-nonprofit-storyteller\/\">nonprofit\u2019s impact<\/a>. If you\u2019re asking for an event sponsorship for an event you\u2019ve hosted before, include information about the success of past events and how it\u2019s helped the communities you serve and your past sponsors. While you may be reaching out to a business, your appeal should be to the people behind the corporation, so tell your story creatively and make it personal.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Overview of sponsorship levels&nbsp;<\/h3>\n\n\n\n<p>It\u2019s important to offer your potential sponsors an overview of the sponsorship levels you\u2019ve set. Create acknowledgment tiers with different incentives for businesses based on the value of the sponsorship. Consider what your needs are, the types of businesses you\u2019re reaching out to, and if you\u2019re seeking an event sponsorship, how big your event will be.&nbsp;<\/p>\n\n\n\n<p>Include a wide range of sponsorship levels so that businesses of all sizes can become a sponsor. Keep benefits and perks varied between levels and make it clear how you\u2019ll recognize all sponsors for their support during events and throughout the year.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Other best practices&nbsp;<\/h3>\n\n\n\n<p>While you\u2019ll be sending out sponsorship letters and packets to businesses directly, it can be helpful to keep your packet available somewhere on your website. If you send a sponsorship packet to companies via email but it becomes buried in their inboxes, having the packet readily available on your website will make it easier for them to find later on if they\u2019re seeking information.&nbsp;<\/p>\n\n\n\n<p>Once you\u2019ve gone over your organization\u2019s mission and sponsorship levels, don\u2019t forget to include your contact information and the URL to the online version of your packet. For further clarity, briefly outline the next steps for what to expect if the business agrees to a sponsorship.&nbsp;<\/p>\n\n\n<p><!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper\" id=\"hs-cta-wrapper-29bb38ce-a5c2-4d50-a236-13931ece851c\"><span class=\"hs-cta-node hs-cta-29bb38ce-a5c2-4d50-a236-13931ece851c\" id=\"hs-cta-29bb38ce-a5c2-4d50-a236-13931ece851c\"><!--[if lte IE 8]>\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/8356283\/29bb38ce-a5c2-4d50-a236-13931ece851c\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-29bb38ce-a5c2-4d50-a236-13931ece851c\" style=\"border-width:0px;\" height=\"150\" width=\"500\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/8356283\/29bb38ce-a5c2-4d50-a236-13931ece851c.png\" alt=\"New call-to-action\"><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(8356283, '29bb38ce-a5c2-4d50-a236-13931ece851c', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the tax implications for corporate sponsorships?&nbsp;<\/h2>\n\n\n\n<p>Once you\u2019ve obtained a sponsorship, it\u2019s important to know what you can and cannot do to navigate complicated tax issues.<\/p>\n\n\n\n<p>In many cases, a financial donation from a corporate partner counts as a qualified sponsorship payment. This means that the donation is acknowledged just like any other donation to your organization would be and is a tax-free gift. However, in some situations, a corporate sponsorship may <a href=\"https:\/\/www.councilofnonprofits.org\/tools-resources\/tax-treatment-of-income-received-corporate-sponsorships\" target=\"_blank\" rel=\"noreferrer noopener\">trigger unrelated business income taxes<\/a>.<\/p>\n\n\n\n<p>If the donation comes with a stipulation that the company will be the \u201cexclusive provider&#8221; for your event and limits the sale, distribution, availability, or use of competitors&#8217; products, services or facilities, the IRS sees that as a \u201csubstantial return benefit\u201d and the donation will become taxable income.\u00a0Exclusive sponsorship arrangements remain charitable contributions so long as they don&#8217;t come with the stipulations an exclusive provider agreement has.<\/p>\n\n\n\n<p>Another way that a corporate sponsorship becomes taxable is if your <a href=\"https:\/\/www.irs.gov\/charities-non-profits\/advertising-or-qualified-sponsorship-payments\" target=\"_blank\" rel=\"noreferrer noopener\">nonprofit advertises for a sponsor<\/a>. If you place a link on your website to a specific product on the business\u2019s page, endorse a product, or mention price information about products, a sponsorship becomes taxable.\u00a0Some corporate sponsorships are partially a charitable contribution and partially an advertising payment, in which case, a portion of the sponsorship payment becomes taxable.<\/p>\n\n\n\n<p>To keep a sponsorship categorized as a charitable contribution, you can only provide value-neutral displays of a business\u2019s product and link only to a sponsor\u2019s home page from your website. If you\u2019re running an event where your sponsor provides you with free samples of a product, you can still hand them out, but you can\u2019t provide an endorsement.<\/p>\n\n\n\n<p>While generally nonprofits do not pay federal taxes on their income, certain corporate sponsorship stipulations could actually mean you do have federal tax responsibilities. On a state level, tax rules differ state-to-state so it&#8217;s vital to do your research and ensure that the corporate sponsorships you receive are being reported correctly when tax day comes around every year. Just make sure you&#8217;re doing your due diligence when tax season rolls around every year and consult with your trusted professional financial advisors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What next?&nbsp;<\/h2>\n\n\n\n<p>So, you\u2019ve found a business that wants to become a sponsor. Where do you go from here?&nbsp;<\/p>\n\n\n\n<p>Before you begin your partnership, make sure you have everything in writing. Draft up a sponsorship agreement that documents the goals, expectations, and obligations both sides have. Include how you\u2019re planning to acknowledge your sponsor\u2019s support in advertising materials, merchandise, and event printouts.&nbsp;<\/p>\n\n\n\n<p>You should communicate with your sponsors consistently leading up to events they\u2019re sponsoring and with other updates if they\u2019re year-round sponsors. If you\u2019re working with an event sponsor, schedule a post-event ROI meeting so you can discuss how successful your event was and get feedback from your sponsor about your partnership.&nbsp;<\/p>\n\n\n\n<p>As always, don\u2019t forget to show your gratitude to your sponsors for their support. Small details matter when sending a thank-you, so lean into this with handwritten notes and personal details. You can also thank your sponsors publicly with a <a href=\"https:\/\/www.qgiv.com\/blog\/13-tools-to-help-you-create-the-best-nonprofit-social-media-campaigns-ever\/\">social media shoutout<\/a> to help them gain even more exposure.&nbsp;&nbsp;<\/p>\n\n\n\n<p>With follow-up communications and ROI meetings, you can ensure that your sponsors feel like a part of the team and cultivate a long-term partnership that goes beyond a single event.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final thoughts&nbsp;<\/h2>\n\n\n\n<p>Finding a corporate sponsor can greatly benefit your organization. With such a valuable form of support, you can accomplish so much more when you\u2019re <a href=\"https:\/\/www.qgiv.com\/blog\/resources\/hybrid-event-planner\/\" target=\"_blank\" rel=\"noreferrer noopener\">event-planning<\/a> or expanding your organization\u2019s programming.&nbsp;&nbsp;<\/p>\n\n\n\n<p>If you\u2019re looking for more resources to obtain a corporate sponsorship, check out these links:&nbsp;<\/p>\n\n\n\n<ul><li><a href=\"https:\/\/www.qgiv.com\/blog\/secure-corporate-sponsorships\/\">How Nonprofits Can Secure Corporate Sponsorships<\/a>&nbsp;<\/li><li><a href=\"https:\/\/www.qgiv.com\/blog\/fundraising-events\">Fundraising Events: 100+ Ideas to Try in 2022 and Beyond<\/a><\/li><li><a href=\"https:\/\/www.qgiv.com\/blog\/sponsorship-packet-template\/\">How to Create the Best Sponsorship Packet Template for Your Nonprofit<\/a><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>While individual donations make up a large part of every nonprofit\u2019s funding, organizations often need additional sources of support through corporate sponsorship. However, obtaining a corporate partner can feel like a daunting task. You may not be sure where to begin or how to go about reaching out to large companies and businesses to ask [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":30213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[271,275,272],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Ultimate Guide to Corporate Sponsorships - Fundraising Blog for Nonprofit, Educational, and Faith-Based Organizations<\/title>\n<meta name=\"description\" content=\"Sponsorships are invaluable sources of revenue. 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