Every year, your nonprofit’s dance, dinner, golf tournament, or other event is well-planned, well-promoted, and well-attended. However, the donations you receive to support your worthy cause may not be as plentiful as you’d like.
Fortunately, you have some control over this variable. Making sponsorships central to your events can help you supercharge your organization’s fundraising efforts.
What Is an Event Sponsor?
An event sponsor can be an individual, company, brand, or other nonprofit that offers financial help or in-kind resources for your fundraising events.
In return, your nonprofit provides the sponsor with certain benefits, such as promoting them before, during, and after the event and featuring their logo on your website and at the event itself on tickets and other printed materials.
Such a sponsorship can reduce the overall cost of your nonprofit’s event, allowing you to keep more of the money you raise.
Beyond improving a single event’s returns, sponsorship can provide other benefits, such as:
- Higher visibility
- Increased credibility
- Access to a wider network of donors
- Enhanced goals
- Long-term partners
Working with sponsors can help your nonprofit build relationships with businesses that support your cause and extend your reach and awareness to new communities.
Best Practices for Securing Sponsors for Your Events
The process of landing sponsors for your event is generally the same whether you’re throwing a dinner dance gala, hosting an auction, or presenting a concert. Here are some best practices to keep in mind.
Start Planning Early
To hold a successful event, you need to start planning at least a year in advance. You can start thinking about how to secure sponsorships at the same time.
Yours isn’t the only nonprofit competing for dollars from your local community and corporations. Getting an early start can help you lock in your sponsors well ahead of your event and get the word out sooner.
Create a List of Potential Sponsors
The individuals or companies most likely to support your event are the ones most aligned with your cause. Consider what’s appropriate when finding sponsors to support your mission. For instance, if your nonprofit is a girl’s softball team, an athletic wear company would be a sensible match.
Build a Sponsorship Package
Once you’re done planning, you can focus on putting together a sponsorship package that makes the pitch to sponsors.
This package might include details of the event, sponsorship levels, deadlines for donations and volunteer registration, and contact information. It can also include an overview of your nonprofit’s mission and impact. The sponsorship levels should detail the exposure the sponsor will receive in exchange for their support.
Be aware that the IRS might consider some corporate sponsorships paid advertising, making your nonprofit liable for an unrelated business income tax (UBIT).
Formulate a Communications Plan
Put together a plan for reaching out to potential sponsors. Will you work through email, phone conversations, in-person visits, or paid advertisements? How often will you contact your potential sponsors? These are all important points to consider.
Leverage Your Team
Everyone in your organization, from volunteers to board members, can help scout for sponsors. They can reach out to their personal and professional networks to solicit sponsors from your list that align with your cause, event, or both.
Devise a Thank-You Process
Your thank-yous are a crucial part of your event planning. You can show your gratitude with words and images before, during, and after the event. It’s also a good idea to draft a formal thank-you letter detailing the outcome of the event and how the money will be used.
After establishing a relationship with a sponsor, you can build on it by inviting its leaders and employees to volunteer with your organization.
Get Answers About UBITs and Other Nonprofit Tax Issues
Scoring sponsorships for events can help your nonprofit make the most of its fundraising efforts, but you don’t want to lose those gains to federal taxes. At Ernst Wintter & Associates LLP, we understand the tax issues nonprofits face. Contact us today to get the answers you need.