Why Newly Formed Nonprofit Organizations Should Develop A Company Sponsorship
After successfully obtaining their 501c3 tax exempt status from the IRS, many nonprofit directors begin brainstorming a variety of fundraising activities. The majority of organizations will look to grant funders to meet their entire funding needs. The unfortunate reality is that the process for applying for grants is extremely competitive and may take several months before a grant foundation reviews an organization’s application. But don’t give up hope yet! There are still a variety of options that your board of directors may pursue in order to receive support and begin serving your target demographic. When looking for support from your community, your board members will want to consider developing a business sponsorship proposal.
Your organization may receive funding faster from a company sponsorship than government or foundation grants.
After your nonprofit organization has established a professional sponsorship plan, your representatives may then begin approaching local businesses and organizations for their support. Since the businesses are located within your community, you directors will have the opportunity to interact with the donors in person and build a solid rapport. Corporate giving is all about developing a relationship with perspective donors, and donors are more likely to support your mission when they are able to meet your directors, visit your program site, and view firsthand how your programs are making a difference within the community they live in. It is difficult to add that type of personal touch to a foundation or government grant application when funders are unable to experience the power of your program’s efforts. In addition, grant funders that accept proposals from all across the nation have to spend months reviewing thousands of applications and meeting with their funding committee prior to approval. Utilizing a company sponsorship plan allows your organization to access your local resources and develop a strong backing within your own community.
The recognition that businesses may receive from your business sponsorship is very attractive to potential donors.
When a donor contributes to your organization via a company sponsorship, they are eligible for the benefits that are included in your benefits chart. This often includes the donor being recognized on your website as a financial contributor, receiving a plaque to display in their place of business, or gaining promotion at your program or fundraising events. In today’s economy, many consumers are attracted to spending their hard earned money with companies that have a philanthropic side. If a donor can become recognized as a company with a charitable reputation, this may impact the success of their business. Business sponsorships can be a win-win situation for all parties involved!
Company Sponsorships will increase your chances of receiving funding from grant and government funders.
Grant makers want to donate to organizations that have previously proven to be successful with the funding they have been able to obtain. In fact, several components of a grant proposal ask for organizations to detail their organization’s history and sustainability. If your organization has not yet begun operating due to budget restraints, successfully applying for grants may be an uphill battle. Utilizing company sponsorships allows your organization to begin receive funding, start practicing strong financial stewardship, and begin developing a reputation as a successful and efficient nonprofit organization!