GETTING IN THE GAME MUNICIPALITIES AND CORPORATE SPONSORSHIP. Saturday May 31, :30 am to noon

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1 GETTING IN THE GAME MUNICIPALITIES AND CORPORATE SPONSORSHIP Saturday May 31, :30 am to noon

2 Mobile Devices Staying connected in the session #sponsorship #FCMycm

3 BRENT BAROOTES President and CEO Phone: Fax: Toll Free:

4 Bill McKay Councilor City of Nanaimo Phone:

5 Manjit Jheeta City of Toronto- Toronto Office of Partnerships (TOP) Phone:

6 SESSION OVERVIEW 1. What qualifies us to present 2. Sponsorship industry trending 3. Nanaimo Engaging Sponsorship 4. Toronto Engaging Sponsorship 5. Wrap Up

7 BACKGROUND National sponsorship consulting company for over a decade serving Canadian sponsorship selling properties and brands who buy sponsorships Team of consultants and advisors from BC to Newfoundland with over 140 years of combined sponsorship industry expertise

8 BACKGROUND We assist recreational providers, facilities, municipalities, parks, facilities as well as arts and cultural organizations, post secondary and secondary educational institutions, amateur and professional sport organizations and charities to enhance current or generate additional revenue streams through corporate sponsorship

9 BACKGROUND We are the industry leading firm for municipalities Recognized by SMCC as a training partner Delivering a half day workshop on municipalities and sponsorship and the tools on getting in the game in October in Calgary

10 BACKGROUND Have worked with or in discussions with over 25 municipalities and associated properties in the past three years Clients large and small, City of Toronto to Town of Taber

11 BACKGROUND Work with municipalities not just on naming rights, but holistic sponsorship programs including and / or excluding naming rights Work with municipalities to build internal capacity versus selling for them

12 BACKGROUND We believe it is critical to understand what you have to sell, what it is worth and to be able to show value to your partners You need to take such tools and build internal capacity to be successful in sponsorship revenue generation

13

14 Canadian Sponsorship Landscape Study 2013 Since 2006 the industry has grown 41% - $1.6B Almost 22% of spends are on local sponsorships 30% of brands marketing budgets last year were spent in sponsorship and experiential marketing up by almost 1/3 over the 2011 study and up over 75% over the last 7 years

15 Greatest continuous growth has been with fairs, festivals and annual events Sport and recreation rank behind arts and fairs and festivals for asks and revenue in Canada

16 Municipalities have seen tremendous growth over the past 5 years with both small and large centers getting into the game Those who are doing it right recognize they own audiences that brands want to reach

17 2013 CONSUMER SPONSORSHIP RANKINGS AN EXCLUSIVE CANADIAN RESEARCH STUDY

18 Consumer Sponsorship Rankings 2013 SHOULD MUNICIPALITIES SEEK SPONSORSHIP? 6.5 out of 10 Canadians believe municipalities, parks and secondary schools should seek corporate sponsorship as a source of revenue

19 Consumer Sponsorship Rankings 2013 OPINIONS ON MUNICIPALITIES SPONSORSHIP 43% 87 % 50 % Companies should get preferential treatment if they are providing revenue to offset costs through a sponsorship Companies should be able to sponsor public spaces such as hockey rinks, ball parks and recreational facilities Companies should be able to retitle existing buildings named after prominent citizens or community benefactors

20 SHOULD YOU BE IN THE GAME OR NOT? Do you need additional revenues beyond user fees and taxes? Are users / citizens concerned about increasing tax rates and increasing user fees at facilities? Do you own rinks, parks, leisure centers, performing arts centers, programming, etc.?

21 SHOULD YOU BE IN THE GAME OR NOT? How do we avoid such situations as: Holiday Inn Holding Cell (for that short unexpected stay) Comfort Suites Correctional Facility Roto Rooter Sewage Management Centre Hot Wheels Fleet Vehicle Department Accounttemps Finance Department

22 SHOULD YOU BE IN THE GAME OR NOT? Do you presently have sponsorship policy in place? Are your constituents OK with corporate branding? Has there been due diligence in undertaking sponsorship Are you committed to doing sponsorship or is it ad hoc?

23 SHOULD YOU BE IN THE GAME OR NOT? Are you understanding of the non profits and charities with whom you will compete? Are you willing to integrate your procurement process with sponsorship Are you open to true partnerships? Are there builders, architectural firms, waste management services companies you want to deal with?

24 TRENDING & RESEARCH A recent polling by The Centre of Excellence for Public Sector Marketing and The Sponsorship Report showed that over 65% of municipalities build internal capacity for selling sponsorships versus outsourcing the sales The study showed a lack of clear understanding about sponsorship marketing and professional revenue generation through sponsorship by municipalities

25 TRENDING & RESEARCH The study also reconfirmed that on average sponsorship agreements take 18 to 24 months from time of prospect clearance to closing The study showed a lack of clear understanding about sponsorship marketing and professional revenue generation through sponsorship by municipalities

26 CITY OF NANAIMO Bill McKay City Councilor City of Nanaimo Lead on Sponsorship and Partnership Development with City Administration

27 CITY OF NANAIMO What were the big issues in Nanaimo? Everyone was asking for more money, departments and community organizations How to generate more money without taxing more and raising user fees?

28 CITY OF NANAIMO What action was taken? Delivered a training program for parks and recreation staff as well as community organizations taught the community organizations how to fish for themselves versus just continually feeding them Showed them how to diversify revenue channels

29 CITY OF NANAIMO What are the next steps and why? Now in the process of developing sponsorship policy for the city to ensure consistency, continuity and to protect themselves Then need to undertake a full inventory asset identification and valuation to determine the potential annual revenue expectations and begin to develop partnerships

30 Manjit Jheeta City of Toronto Toronto Office of Partnerships A total of 250 partnerships brought $26 million to the City to enhance existing programs and services

31 Partnership Data partnerships brought $26 million $6.18 $ % 30% Donation Grant 2012 Joint Venture $ % Sponsorship $ % $ % 2012 $ % Capital Operating $ % $ % 2012 $ % Cash Cash & In-Kind In-Kind $ % 2012 $ % $ % Government Not for Profit Private

32 The nature of partnerships within the municipality are varied and complex. Partnerships range from collaborations on projects, donations to city initiatives, sponsorship of events and programs, naming rights of events and facilities and joint ventures and P3 s

33 Establishing a Corporate Office The Toronto Office of Partnerships (TOP) was created in June 2007 as a temporary corporate office. TOP is a small unit with a total of 6 staff. 2 year term - to assess its strengths, gaps and impact. Now a core City Division

34 TOP Strategic Directions Develop the corporate infrastructure and capacity to support and facilitate partnerships Identify and engage the private and not-for-profit sectors as investment partners in City initiatives. Support City Divisions and Agencies in their partnership activities Market the potential of the City as a partner of choice

35 City Partnerships Partnerships can be with individuals, community groups, foundations, other governments, and/or businesses Third parties might be for-profit or not-for profit entities. Partnerships can involve cash or in-kind transactions of varying items and quantities. Collaborations are typically for specific capital projects, programs and/or events which have specific durations and deliverables. The goal is to build successful long-term relationships between the City and its partners.

36 Partnership Categories Sponsorships - Contributions to City-run (or endorsed) events, programs and facilities in exchange for a pre-determined benefit. Donations - Cash or in-kind contributions, whether designated or not, which provide assistance to the City. They are given without return consideration. Donation of $20 and over qualifies for a tax receipt

37 Policy Work Donations Policy facilitate timely receipt and disbursement of donations direction as to what constitutes an acceptable donation Sponsorship Policy Naming Rights Policy Maintenance Funds Guidelines Advertising Policy Unsolicited Proposals

38 Donations Donations - Cash or in-kind contributions, whether designated or not, which provide assistance to the City. They are given without return consideration. Donations of $20 and over qualifiy for a tax receipt

39 Donations Policy Not commit or expose the City to unplanned future expenditures, risks or obligations that cannot be absorbed; Deemed to be in the public interest and is consistent with the City s approved programs, services and activities. Provides delegated Authority to receive donations under $50,000 Prohibits the donor from using the donation to influence City decision making Provides clarity on City MFIPPA requirements and donors.

40 Sponsorships Contributions to Cityrun (or endorsed) events, programs and facilities in exchange for a pre-determined benefit. i.e. Monster Mortgage Toronto Challenge Scotiabank Nuit Blanche, Live Green Festival, Clean Toronto Together

41 City s Sponsorship and Naming Rights Policy Council approved a Sponsorship Policy, a Naming Rights Policy and an Honourific Naming Policy at its November 2011 meeting: To enhance revenue from sponsorships and naming rights To establish a fair, transparent and consistent review process for such proposals To establish a formal procedure for the receipt and consideration of both solicited and unsolicited naming proposals.

42 City s Sponsorship Policy - Features Welcomes sponsorship and naming right offers from any third party. Must retain ownership and control of the sponsored/named property. All sponsorship and naming right agreements must be documented. Divisions have delegated authority to accept sponsorships valued up to $500,000. However, all naming rights, regardless of their value, require the approval of Council. An RFP is not required when soliciting sponsorships. All Naming Rights require Council approval

43

44 Explore Toronto's Buildings Since its inception in 2000, Doors Open Toronto has attracted more than two million visits in nearly 600 unique locations across the city. Doors Open is produced by the City of Toronto in partnership with the broader community.

45 January 30 to February 12, 2015 Toronto's favourite culinary celebration, Winterlicious. The popular prix fixe program offers three course menus for exceptional value. The Summerlicious and Winterlicious restaurant promotions are produced by the City of Toronto.

46 Saturday, October 4, 2014 Toronto's free all-night contemporary art event. From sunset to sunrise the magic of Scotiabank Nuit Blanche will return in 2014 to Toronto to light up the city on October 4. Experience Toronto transformed by artists for one night only. All night long.

47 Home Depot, Maple Leafs upgrade rinks A true testament to what can be accomplished when the private and public sectors work together. Through their investment and leadership in our communities, the Toronto Maple Leafs and The Home Depot are not just improving our neighbourhood rinks, but are helping to build a better Toronto."

48 New for 2014/2015 Corporate Partnership Strategy and Opportunities List Advertising Policy Maintenance Guidelines E-Donations and Volunteer Management System Valuation of properties Pan Am/Para Pan Am - Host City Showcase

49 5 STEPS TO SUCCESS 1. Build the case for support internally and externally 2. Develop policy and procurement consideration 3. Determine what you have to sell and value 4. Develop a plan for sales sell professionally 5. Build relationships and fulfill partnerships

50 QUESTIONS

51 Please visit our website for more information Thank You

52 APPENDIX A MANJIT S CITY OF TORONTO FULL PRESENTATION Please visit our website for more information

53 Manjit Jheeta FCM 2014

54 Partnerships, Collaborations and Innovations Many of society s challenges are complex and require integrated responses An integrated, multidisciplinary approach where individuals and organizations work together can lead to the development of innovative solutions. Partnerships and Collaborations may be the key to new energy, new resources, and new ideas. Public sector can bring expertise & knowledge of communities Private sector can bring resources & an entrepreneurial spirit Together, we can build a better city to live, work and play

55 City of Toronto Toronto is Canada's largest City and sixth largest government, and home to a diverse population of about 2.6 million people. The nature of partnerships within the municipality are varied and complex. Partnerships range from collaborations on projects, donations to city initiatives, sponsorship of events and programs, naming rights of events and facilities and joint ventures and P3 s

56 Establishing a Corporate Office The Toronto Office of Partnerships (TOP) was created in June 2007 as a temporary corporate office reporting to the Deputy City Manager Cluster A. TOP is a small unit with a total of 6 staff. Two year term - to assess its strengths, gaps and impact on the City of Toronto partnership activities. Now a core City Division

57 TOP Strategic Directions Develop the corporate infrastructure and capacity to support and facilitate partnerships Identify and engage the private and not-for-profit sectors as investment partners in City initiatives. Support City Divisions and Agencies in their partnership activities Market the potential of the City as a partner of choice

58 Strategic and Operational Functions One Window Access Partnership Strategy Partnership Expertise Leadership Facilitation Coordination Consultation Partnership Strategy Policies and Standards Marketing Opportunities Partnership Communication Strategy Potential Partner Network Planning and Prioritization Relationship Management Customer Service Standards Issues and Complaints Resolution Ad Hoc Partner Group Resource Centre For Partnerships Performance Indicators & Corporate Reporting Partnership Training And Tools Partnership Practitioner s Group Project Coordination

59 City Partnerships Partnerships can be with individuals, community groups, foundations, other governments, and/or businesses Third parties might be for-profit or not-for profit entities. Partnerships can involve cash or in-kind transactions of varying items and quantities. Collaborations are typically for specific capital projects, programs and/or events which have specific durations and deliverables. The goal is to build successful long-term relationships between the City and its partners.

60 Partnership Categories Sponsorships - Contributions to City-run (or endorsed) events, programs and facilities in exchange for a pre-determined benefit. Donations - Cash or in-kind contributions, whether designated or not, which provide assistance to the City. They are given without return consideration. Donation of $20 and over qualifies for a tax receipt Joint Ventures - City and one or more partners/not for profit invests in a venture each sharing the risks/rewards. 60

61 Data Collection A total of 250 partnerships brought $26 million to the City to enhance existing programs and services The City of Toronto has a wellestablished history of working with individuals, the business sector and various communities to provide value-added services to the public through partnerships. The annual partnership inventory, provides an account of the quantity of partnerships that the City is currently involved in and their financial value.

62 Policy Work Donations Policy facilitate timely receipt and disbursement of donations direction as to what constitutes an acceptable donation Sponsorship Policy Naming Rights Policy Maintenance Funds Guidelines Advertising Policy Unsolicited Proposals

63 Donations Donations - Cash or in-kind contributions, whether designated or not, which provide assistance to the City. They are given without return consideration. Donations of $20 and over qualifiy for a tax receipt

64 Donations Policy To facilitate the timely receipt and disbursement of donations by divisions. To provide divisions with direction as to what constitutes an acceptable donation Must not represent a conflict of interest for the donor or staff; Must be from a reputable source (ineligible donors include arms manufacturers, tobacco companies, etc.); Not contingent upon an endorsement or preferential treatment;

65 Donations Policy Not commit or expose the City to unplanned future expenditures, risks or obligations that cannot be absorbed; Deemed to be in the public interest and is consistent with the City s approved programs, services and activities. Provides delegated Authority to receive donations under $50,000 Prohibits the donor from using the donation to influence City decision making Provides clarity on City MFIPPA requirements and donors.

66 Contributions to City-run (or endorsed) events, programs and facilities in exchange for a predetermined benefit. i.e. Monster Mortgage Toronto Challenge Scotiabank Nuit Blanche, Live Green Festival, Clean Toronto Together, Sponsorships

67 Types of Sponsorships Cash In-kind Payment of goods and services rather than cash Sponsors usually spend at the equivalent value of their sponsorship fee on their own promotional activity related to the property

68 Why do companies sponsor properties? Differentiation from competition Client entertainment Merchandising opportunities Showcase new or existing products Combat larger budget competition Drive sales or leads Competitive marketplace Budgets are tighter Better ROI than traditional mediums

69 City s Sponsorship and Naming Rights Policy Council approved a Sponsorship Policy, a Naming Rights Policy and an Honourific Naming Policy at its November 2011 meeting: To enhance revenue from sponsorships and naming rights To establish a fair, transparent and consistent review process for such proposals To establish a formal procedure for the receipt and consideration of both solicited and unsolicited naming proposals.

70 City s Sponsorship Policy - Features Welcomes sponsorship and naming right offers from any third party. Must retain ownership and control of the sponsored/named property. All sponsorship and naming right agreements must be documented. Divisions have delegated authority to accept sponsorships valued up to $500,000. However, all naming rights, regardless of their value, require the approval of Council. An RFP is not required when soliciting sponsorships.

71 City s Sponsorship Policy - Features Apply to all divisions and those ABCs which are by law subject to the policies of City Council, - except BIAS Apply to all City properties (events, programs, facilities, features, etc.) - except for streets and lanes. All naming right proposals require Council approval

72 City s Sponsorship Policy - Features Local councillor is to be advised of all ward-specific naming right proposals. Properties with names of historic or community significance will only be considered for renaming in exceptional circumstances and only after consultation with the local councillor and the community. Honourific names shall normally be awarded posthumously to people who have been deceased for at least two years

73 City s Partnership recognition Media event and press release On-site signage Website and newspaper Plaques Opening ceremonies Councillor newsletter Brand recognition on collateral/advertising 73

74 Live Green Toronto The Live Green Toronto Festival is one more way that Live Green Toronto promotes and supports the greening of our city. Live Green Toronto also offers grants, community support, a newsletter, volunteer program and more Sponsors Welcome! With 40,000 visitors, the Festival is a great place to tell your green story and showcase your brand. To learn more,

75 Explore Toronto's Buildings Saturday May 24 - Sunday May 25, 2014 Since its inception in 2000, Doors Open Toronto has attracted more than two million visits in nearly 600 unique locations across the city. It is Canada's largest Doors Open event and one of the three largest Doors Open events in the world. The 15th annual Doors Open will offer residents and visitors an opportunity to take a peek behind the doors of nearly 150 architecturally, historically, culturally and socially significant buildings across the city on Saturday May 24 and Sunday May 25, Doors Open is produced by the City of Toronto in partnership with the broader community.

76 » January 30 to February 12, 2015 Toronto's favourite culinary celebration, Winterlicious, is the perfect opportunity to explore the great variety of delicious cuisine that the city has to offer. The popular prix fixe program offers three course menus for exceptional value. The culinary event series offers a variety of programming including cooking classes and demonstrations, dinner theatre, tastings and pairings, intimate chef dinners and more! Be the first to know when restaurant lists and menus are available online. Sign up for the Celebrate Toronto enewsletter and follow LiciousTO on Twitter,Facebook, Instagram and Youtube. The Summerlicious and Winterlicious restaurant promotions are produced by the City of Toronto.

77 Saturday, October 4, 2014 Toronto's free all-night contemporary art event. From sunset to sunrise the magic of Scotiabank Nuit Blanche will return in 2014 to Toronto to light up the city on October 4. Experience Toronto transformed by artists for one night only. All night long. Scotiabank Nuit Blanche official website Participate in Scotiabank Nuit Blanche 2014 Artists Sponsors Volunteers

78 Toronto Challenge Are you ready for a challenge? For 23 years, the Toronto Challenge, presented by MonsterMortgage.ca, has been bringing together participants from all ages and abilities to raise funds for non-profit organizations that are improving the quality of life for seniors in your community. Whether you're a serious runner, spending time with your family, or simply enjoy physical activity, you can take part in a timed 5k run, 5k walk or 1k walk through downtown Toronto. As a participant, you will receive a t-shirt, a chance to win prizes and be invited to the post-race ceremony in David Pecaut Square. On Sunday June 8, take the Challenge with your friends and family by registering today!

79 Aki Latvala Foundation donates new playground equipment Children using the Franklin Park playground can now enjoy new playground equipment generously donated by the Aki Latvala Foundation. The donation was celebrated June 22, 2013 with an event at the park, located at 138 Franklin Ave. In addition to the new play structure, Franklin Park features new benches, stone seating, a picnic table, a new wooden fence and a crushed stone pathway..

80 Home Depot, Maple Leafs upgrade rinks February 11, 2008 "What we have here today is a true testament to what can be accomplished when the private and public sectors work together, "Through their investment and leadership in our communities, the Toronto Maple Leafs and The Home Depot are not just improving our neighbourhood rinks, but are helping to build a better Toronto."

81 Partnership Data partnerships brought $26 million $6.18 $ % 30% Donation Grant 2012 Joint Venture $ % Sponsorship $ % $ % 2012 $ % Capital Operating $ % $ % 2012 $ % Cash Cash & In-Kind In-Kind $ % 2012 $ % $ % Government Not for Profit Private

82 New for 2014/2015 Corporate Partnership Strategy and Opportunities List Advertising Policy Maintenance Guidelines E-Donations and Volunteer Management System Valuation of properties Pan Am/Para Pan Am - Host City Showcase

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