When evaluating the success of a nonprofit event, many leaders prioritize financial outcomes—specifically, how much money was raised. To achieve financial success, securing sponsors (both individuals and businesses) to help cover expenses is essential. Make securing sponsorships a key focus when planning your organization’s events. 
Best Practices
Your event may take various forms, such as a gala dinner, conference, auction, golf tournament, concert, or a combination of these. Regardless of the format, the approach to finding suitable sponsorships remains consistent.
For instance, timing is a critical factor. Nonprofits often compete for the same philanthropic dollars, so it’s wise to start early. Having a fundraising plan in place a year in advance isn’t overly ambitious, and it’s best to secure sponsors four to six months before your event.
To identify potential sponsors, closely examine your organization’s mission statement and consider what would be appropriate and beneficial. For example, an athletic clothing brand might be an ideal sponsor for a youth soccer tournament, while a local grocery store could be perfect for a food bank’s silent auction.
Leveraging Teamwork
Your chances of success improve when you form a team with strong community ties. Encourage executives, board members, and volunteers to tap into their personal and professional networks for sponsorship opportunities. These ambassadors should be well-equipped with information about the benefits that sponsors will receive.
Make sure to highlight the demographics of your event attendees. Convincing potential sponsors that your audience aligns with their target market is crucial. Include data on attendees’ location, age, gender, and purchasing power, and be honest in your presentation—avoid exaggeration.
Exposure Opportunities
Sponsors typically provide financial support in exchange for exposure to your audience. This could include featuring the sponsor’s name on event materials—such as signs, banners, brochures, tickets, newsletters, and program books—as well as acknowledging them verbally during the event. To maximize support from both large and small sponsors, create various sponsorship levels. Generally, the companies that contribute the most should receive the most visibility.
Additionally, offer free attendance for at least one representative (and a guest) from each sponsoring company, giving them the chance to engage with attendees, gather insights, and make connections. If you’re hosting an annual conference or meeting, consider providing sponsors with speaking opportunities.
Building Long-term Relationships
Remember, sponsorships should ideally foster a long-term relationship between your nonprofit and the sponsor. After your event, consider involving the sponsor’s employees in your organization’s initiatives by organizing a company volunteer day. Also, don’t hesitate to seek their support for your next event.
Lastly, be cautious: in certain situations, the IRS may classify corporate sponsorships as paid advertising, which can lead to unrelated business income tax (UBIT) liabilities for nonprofits. Contact us for guidance on navigating UBIT rules while securing sponsorships.
