Turning a nonprofit’s vision into reality requires more than passion alone—it needs resources and lots of them. Corporate sponsors can open doors for nonprofits that might otherwise remain closed. From matching gifts to cause marketing, businesses and corporations provide the vital support organizations need to succeed.
If you’re a nonprofit executive or fundraiser, these sponsors may be just what you need to reach your fundraising goals, reach new supporters, and advance your mission. It’s not a one-way street, though. When corporate sponsors help your nonprofit, they hope they will get new customers, retain current ones, and generally be viewed as good corporate citizens.
While we’ll dive into the different types of corporate support you can pursue, you can prepare for your conversations by watching this video filled with tips for connecting with sponsors:
Now, let’s jump in, so your nonprofit can start securing corporate sponsors and long-term partners in the ways that best support your needs.
Matching gifts
Matching gifts are a form of corporate philanthropy in which businesses agree to match charitable donations made by employees, either dollar-for-dollar or at a higher ratio. Your nonprofit benefits from increased funding, while the business enhances its corporate social responsibility (CSR) efforts and strengthens its partnerships within the nonprofit sector.
Here’s how it works: A donor makes a contribution to your cause and submits a matching gift request to their employer, who also happens to be your corporate sponsor. The sponsor then reviews the request, verifies the donor’s eligibility, and, if approved, matches the donation with a predetermined amount, effectively doubling or sometimes even tripling the original contribution.
To streamline the process, ensure that your corporate sponsor has the right tools. For instance, certain CSR software can be used to automate verification, requests, and disbursement, helping you receive funds faster.
Volunteerism at your nonprofit
A great way to get people from corporations involved in your organization is to create volunteer opportunities. When you promote volunteerism, you give people who work at businesses a chance to get familiar with your organization. Moreover, it gives them an opportunity to roll up their sleeves for your programs, which often leads to donations.
Volunteerism is an excellent way to recruit corporate employee supporters. But it’s also a great way to get on the radar of corporations for future contributions from both employees and the companies. Remember, businesses want to know the nonprofits their teams support because it helps companies with employee retention.
Many companies support the nonprofits their employees volunteer with through volunteer grants. Volunteer grants are similar to matching gifts, but instead of matching donations, companies will contribute to nonprofits based on the number of hours their employees volunteer there. As a result, these companies encourage their employees to give back to the causes they care about and help these nonprofits fund their missions in return.
In-kind corporate donations
Another fantastic way to get corporate support is to ask for in-kind contributions from companies. Instead of supporting your nonprofit with money, a corporate sponsor provides you with necessary goods or services. For instance, you can receive marketing, legal or financial expertise from firms that offer you in-kind donations. And that saves your organization thousands of dollars in professional fees. Another opportunity is to ask corporate sponsors to help you with their teams in providing your CRM or technology support.
Payroll deductions
Some corporations implement corporate philanthropy initiatives that allow employees to donate to a favorite cause through payroll deductions. Deductions made directly from wages are an excellent way to get support from workers because it’s automatic. This means a higher likelihood that your nonprofit will receive a larger average gift. As an example, instead of making a one-time gift of $50, a corporate employee could choose to deduct just $5 weekly from their paycheck. In one year, that donor would donate $260 to your nonprofit, a much more significant amount than $50.
Event or program sponsorships
Another form of collaboration that your nonprofit can request from businesses is an event or program sponsorship. As you’re planning your next event or program, you’ll identify if you need a larger gift to ensure that it is a success. In addition to contacting major donors, you can reach out to businesses to see if they’d be willing to sponsor your event.
In exchange for their help, whether that’s financial or in-kind, you may offer some of the following benefits:
- Publicity and exposure. Nonprofits will include the business’s logo, name, and products in select marketing materials. For example, they may add the business’s logo and name to flyers, naming them as a sponsor for their event.
- Networking opportunities. At these events or programs, nonprofits will facilitate networking for their business partners. This allows business leaders to make connections that can help them develop their companies further.
- Access to special events. Especially at the end of a successful program, sponsors may receive an invitation to a special event or VIP experience. This could be a behind-the-scenes tour of the nonprofit’s operations or a gala or dinner.
This type of support is not usually ongoing, but a successful event or program sponsorship can strengthen your nonprofit’s relationship with its partner. In that case, the corporation may be happy to partner with you again in the future.
Adding a sponsorship page to your website is an effective way to find potential event or program sponsors. While you can also reach out to companies directly, creating a sponsorship page allows interested businesses to come to you.
When creating a sponsorship page, you’ll want to include all the important information about sponsoring your organization, such as:
- Your sponsorship levels
- Current initiatives or events you need sponsors for
- Any values or criteria you’d like sponsors to have
- Contact information for interested businesses to reach out to
Once you’ve developed a sponsorship page, promote it by posting about it on social media, using paid search opportunities like Google Ads, and featuring it in your next newsletter.
Corporate grants
Corporate grants are direct financial contributions to your nonprofit organization. Companies often use CSR software to facilitate the grantmaking process, alongside their other corporate giving programs.
For nonprofits, pursuing corporate donations is one of the most cost-effective ways to raise money. For instance, events typically are one of the most expensive ways to fundraise with every dollar donated costing your organization about $0.30. However, like raising funds from individuals, when your organization pursues corporate grants, the expenses can be approximately $0.10 for every $1.00 raised. For the world’s largest repository of grant information, make sure to start by exploring Candid, which provides comprehensive data and insights about the social sector.
Cause marketing
Also called cause-related marketing, cause marketing is a marketing strategy in which a business partners with a nonprofit organization or social cause to promote both their company and a charitable cause.
As with all types of corporate support, this collaboration is mutually beneficial. Nonprofits are able to reach new audiences while businesses are able to position themselves as good corporate citizens. Both parties can expand to new audiences, leading to increased sales for companies and donations for nonprofits.
Some examples of this type of corporate support include:
- Red Nose Day: This annual event is a collaboration between Walgreens and Comic Relief US. Its goal is to end the cycle of child poverty and give kids access to health services, nutritious food, quality education, and more. People can purchase red noses from Walgreens, who will then donate all profits to the fund to build a more equitable, healthier life for children.
- Dove’s Self-Esteem Project: Launched in 2004, this campaign aims to boost young people’s self-esteem and body confidence. Dove partners with organizations like Boys & Girls Clubs to deliver self-esteem workshops and educational resources to help children grow up with positive body images.
Projects like these leverage the power of commerce to drive positive change. Think through how your mission aligns with companies — including everyone from major corporations to small businesses. In turn, you’ll connect with new supporters and drive more value through corporate sponsorships.
When considering partnering with a corporation for some form of sponsorship, ask yourself the following questions: What do you need from your corporate partner? What can you offer them in return? This will give you a clear idea of how to approach the partnership, allowing you to create a great outreach plan that will ensure you get the sponsorships you need. And that, in turn, will help your nonprofit receive the support necessary to power your mission.
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