Sponsorship is when a company commits money or resources to a nonprofit event or program in exchange for specific promotional benefits.
At its core, sponsorship is an exchange of money for services.
In exchange for supporting the nonprofit, the company gets their name and logo on a banner, t-shirt, poster, brochure or other kinds of marketing and communications related to the event or program.
The business objective of sponsorship is to reach a specific target audience and to earn a “halo” for supporting a good cause. The favorability sponsorship delivers can give a business a competitive edge that goes beyond product and price. Increasingly, businesses of all sizes are striving to balance profit with purpose through sponsorship and other socially responsible marketing.
Sponsorship is win-win and work-work. Both the nonprofit and for-profit benefit from the partnership, but success depends on them working together to ensure each other’s success.
Take the example of the Boston Marathon, which is run by a nonprofit organization, the Boston Athletic Association or BAA. Of course, the event has a number of longstanding corporate sponsors, including running shoe maker Adidas.
How does the BAA benefit? They raise millions of dollars from Adidas and other corporate sponsors. Adidas raises the profile of the event and enhances its reputation as a world-class marathon.
How does Adidas benefit from the sponsorship? Adidas gets access to avid runners who are the perfect customers for Adidas shoes and gear. Being associated with such an important and famous event gives Adidas a favorable connection with thousands of runners and millions of spectators - both along the course and watching at home on television.
Is the partnership win-win for both partners? Absolutely. Do the BAA and Adidas have to work hard ensure each other’s success? You bet.
One thing you don’t need to succeed with sponsorship is a large athletic event like the Boston Marathon or a global shoe company like Adidas. There are many sponsorship opportunities with organizations of all sizes and types.