SPONSORSHIP 101! Creating a future without breast cancer. About Event Sponsorship. A. Getting Started

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1 SPONSORSHIP 101! About Event Sponsorship You ve decided to organize a community fundraising event in support of the Canadian Breast Cancer Foundation and you may need to secure event sponsors: now what? While sponsorship can be a lot of work, it is a great way to add additional revenue to help cover costs and raise more funds. Sponsors can provide cash donations and/or gifts-in-kind (donations of products and/or services) which could include items for a silent or live auction, gift bag inserts or materials and services to be used for your event. Corporations are often happy to sponsor an event as long as they receive marketable benefit in return (e.g. publicity to current and potential customers). Potential sponsors are attracted to events that allow them to showcase their products, brand and commitment to the community. A successful sponsorship arrangement should always be mutually beneficial for both the sponsor and the event organizer. You may want to appoint a sponsorship chair. Often this role is assumed by the event chair who already has so much to do. If possible, have a committee member commit to this job. Make sure it is a good match for them, i.e. they want to do this job and they like approaching people, for example. A. Getting Started 1. Start early. Finalizing a sponsorship agreement takes time. If possible, it is best to approach potential sponsors at the beginning of their fiscal year or at least 3 to 6 months before your event. 2. Set a goal. Once you have prepared your event budget, laying out all of your expenses and best possible assumption of revenue, determine the sponsorship funding you would like to secure. This would include any products or services you would like to be donated to your event as gifts-in-kind from sponsors. The amount of support you ask from sponsors should be proportional to the benefits your event is able to provide. The more recognition a sponsor is going to receive, the more money you should feel comfortable asking them for. 3. Determine sponsor benefits. Consider your event and all of the opportunities you are able to provide to sponsors. For example: a. What recognition vehicles do you have? (programs, print ads, radio/tv coverage, posters, ticket stubs, outdoor signage, stages, scoreboards) b. What are your reach numbers? This is the number of attendees and the print circulation for your materials. Also consider the demographic of your attendees; they might be an appealing new market for a sponsor. c. Are there opportunities for sponsors to attend the event? Will they receive VIP access or certain other perks? d. Can sponsors invite clients to the event? Can sponsors bring employees to the event and use the event to promote employee team building? e. Can sponsors set-up promotional booths/tents to hand out free products or surveys or include these in gift bags? f. Will sponsors receive verbal recognition at the event or will their logo be on a PowerPoint presentation loop that will run in the background at the event? Will sponsors have the opportunity to speak at the event? 4. Determine sponsorship levels and costs. Based on the benefits that you are able to provide to your sponsors, create sponsorship levels and/or categories to allow companies to contribute at the price point or category which best suits their organization. Each category or level should provide distinct benefits and recognition based on the amount of funding provided. High end sponsors should receive the most recognition and may be the only sponsors who receive any pre-event recognition (on tickets, flyers, etc.). You should design your levels so that sponsors can clearly see the benefits of moving up to a higher category. Sponsors are often divided into levels such as Presenting, Gold, Silver and Bronze, or you can use names which are associated with your event. Sponsors who provide gifts-in kind are often recognized in the special category of Supplier. You may also want to offer your sponsors a certain level of exclusivity based on their level/category of sponsorship or on their type of business. For example, you may give exclusivity to high-end sponsors by having only one presenting sponsor for your event. Or,

2 you may provide category exclusivity to a certain sponsor by making it the only grocery store chain or printing service sponsor of your event, for example. Suppliers can also be attracted by exclusivity. For example, having all your sports equipment supplied by one provider: the exclusive provider of sporting goods for [your event]. 5. Brainstorm potential sponsors. Identify companies whose customer base reflects your event attendees. Small, local businesses are often interested in supporting grassroots events within their community. Ask members of your committee to think of any contacts they may have who may be interested in sponsoring the event. It is often easier to approach a pre-existing contact than to establish a new relationship. 6. Try to think of sponsors who would benefit the most from becoming involved with your event. For example, new businesses looking for some extra publicity, or companies that want to demonstrate their commitment to the community. Many large corporations list their giving policies on their websites. B. Creating a Sponsorship Package A sponsorship package outlines the specific sponsorship opportunity, sponsor benefits, details about the event, your contact information, and your follow-up plan for arranging an agreement. Where possible, personalize the package for each company to which you are presenting. Phone the corporation and find out who should receive the package and include their name on your cover letter. In large corporations, the marketing/advertising department usually handles sponsorship decisions, but it could also be the responsibility of the promotions or communications department. For small businesses, packages should usually be addressed to the business owner. The Cover Letter This should outline all the key pieces of the sponsorship package, including: the specific opportunity; key benefits; sponsorship levels; your contact information; and a follow-up plan (e.g. I will contact you in 3 days to discuss this further ). The Proposal The proposal provides the details of the sponsorship opportunity. The proposal should be easy to understand, with clear headings and short sentences. You may want to include brochures and examples of media coverage from past events (if relevant) in a folder along with the proposal. The proposal should include: 1. Name of event. 2. Date and times of event. 3. Brief description of event. What makes your event unique? 4. Location(s). 5. The number of years the event has been running (if relevant) and whether the event will be held next year. 6. Anticipated attendance numbers and demographics. 7. A list of sponsorship levels/categories and the fees and benefits associated with each level, and/or a list of services or materials you would like a supplier to provide and the benefits they will receive in return. Your benefits section may include:

3 a. An outline of your promotional plan indicating what types of promotion you will be doing and what audience they will reach. For example, advertisement in the newspaper, flyers on community centre bulletin boards, etc. b. An outline of your promotional materials indicating the size and placement of the sponsor s logo (referenced at different levels) and projected quantities being produced. This may include flyers, brochures, tickets, programs, etc. c. Opportunities for sponsors to display signage, distribute products or run a booth at the event. d. The names of other sponsors already associated with the event and opportunities for exclusivity. For example, will there only be one coffee chain sponsor and only one printing sponsor? There may also be exclusivity for the high-end sponsor levels only one presenting sponsor, for example. e. Opportunities for company representatives to be involved in cheque presentations, award/prize presentations, celebrity introductions, dinner or reception speeches. f. A specified number of complimentary tickets, if available. Will sponsors receive VIP privileges at the event? g. Other unique opportunities the company would receive by sponsoring the event. 8. Your contact information and a follow-up plan for when you will contact them next. You may also include a deadline by which time a company must let you know their decision. 9. A sponsorship form where they can easily fill in pertinent information such as level of sponsorship they re interested in, mailing address, contact information and space where they can provide you with their credit card information if they would prefer that method of payment. Often companies want to get the transaction out of the way as soon as the agreement is made so it is best to give them that option right away. They may also ask you to invoice them. C. The Agreement Once you have reached a verbal agreement with a sponsor, it is important to have the sponsor and a representative from your committee sign a basic letter of agreement. The letter of agreement should outline the sponsorship fees, a list of guaranteed sponsor benefits, and a description of the approval process you will follow whenever using the sponsor s name or logo on event materials. Keep one copy of the agreement for yourself and provide a second copy to the sponsor. Be sure to inform other prospective sponsors once a sponsorship opportunity has been filled. If a sponsor declines the offer, find out why. They may provide you with information which will help you improve your sponsorship approach in the future. D. On Event Day If sponsors are attending the event, make sure that someone is designated to greet them and help them to set-up any materials as decided upon in your agreement. Assign one person on your event committee to double-check and document all sponsor recognition at the event. Take photos of signs and banners, programs, tickets etc. with the sponsor s logo on them. It is often nice to include these photos in your thank you after the event to your sponsors. It is imperative for you to make sure sponsors are provided with all the benefits agreed upon in the agreement, including verbal recognition/thanks during event presentations. E. After the Event Thank you, thank you, thank you! Once you are sure that you have done everything you had set out to do for your sponsors, this is the most important next step. Follow-up with your sponsors to report the success of your event and to thank them for their participation. Outline the benefits they received in your thank you. It is often wise to provide sponsors with a photograph, small token or certificate recognizing their

4 participation. This helps to reinforce a positive experience for the sponsor and will keep the door open for you to work with the company again in the future. It is important to go back to your sponsors as early on as you can to ask for a commitment for next year. If they have had a positive experience sponsoring your event they are likely to sign up with you again. They will also be pleased that you have come to them first. It is often good if you are able to offer them something new for their sponsorship next year. They will also appreciate you coming to them early so that they can build this event into their company s budget earlier.

5 Sponsorship Tips Start early! The process of confirming event sponsors often takes more time than people think. Personalize your proposal. Create individualized packages for each sponsor. Don t conduct mass mailings. Arrange face-to-face meetings with sponsors whenever possible. This helps to build relationships and allows you to guide sponsors through your sponsorship proposal and answer any questions they may have. In-person meetings also demonstrate your personal commitment to securing the sponsor s support. Do your research! Conduct background research to identify potential sponsors who will benefit the most from aligning themselves with your event. Look for companies who are interested in increasing their publicity or promoting their community involvement. Match your sponsors to your event. If you are hosting a small, local event, target small, local businesses first. If you are presenting a large event, consider larger corporations. Tell sponsors how your opportunity meets their needs. Sponsorship is a mutually beneficial agreement. Provide valuable sponsor benefits. Identify what you can offer sponsors and communicate these benefits to sponsors when you seek their donation. Always thank your sponsors! It is a great opportunity to build positive, lasting relationships with sponsors who will continue to support you again and again. Sponsorship Checklist Determine sponsorship funding needs and benefits available to sponsors. Research and determine which potential sponsors to approach. Create personalized sponsorship packages (cover letter and proposal). Distribute packages in person if possible. Follow up with potential sponsors. Confirm sponsorship and sign written agreements. Make sure you collect their money and/or gift-in-kind. Arrange to pick up the gift-in-kind or send a courier to pick it up for you. Develop event materials using sponsor logos. Provide the opportunity for sponsors to approve the use of their logo/name whenever you use it on promotional or event materials. Ensure sponsors receive the benefits outlined in their agreements. Document the benefits provided to each sponsor. Take photographs of any visual recognition. Thank sponsors for their participation. Follow up with sponsors early to ask about their sponsorship for next year.