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Funding Development Services
FAQ Series: Corporate Partnerships
- What is a corporate partnership and when would a library use it?
- What ways can businesses contribute?
- What is sponsorship?
- What is cause-related marketing?
- Why does business give?
- What does a business expect from a charitable partner?
- How much does business give?
- What should we know before we ask businesses to support us?
- Who should do the asking?
- What makes an effective proposal to business?
- What information should be in a sponsorship package?
- Why you need a corporate sponsorship policy?
- Where can we go for more information about what businesses give?
What is a corporate partnership and when would a library use it?
Corporate partnership is the term used to describe the association a business has with a nonprofit partner either through a philanthropic donation or other kinds of support. There are many ways that a business large or small can support the work of nonprofits. Libraries have many community partners to help deliver programs such as Early Years and Baby’s First Book. Business has the same interest in supporting these kinds of community efforts, and would help if they were asked. Working with the business community takes ongoing cultivation to build a productive partnership. Many libraries have found it helpful to belong to Rotary or other service clubs, and to attend Chamber of Commerce meetings and events. This rapport helps get the library in front of business and civic leaders who will better understand our work when we ask them to consider a business partnership. This ongoing cultivation of relationships can prove very rewarding in supporting library programs.
What ways can businesses contribute?
There are two primary ways businesses can support the fundraising activities of libraries. There are cash gifts and non-cash support, often referred to as gifts in-kind. Cash gifts can come from a donations budget, such as one-time gifts, renewable annual support or pledges. Cash donations can also come from employees through matching gifts or employee funds. Cash can also come from public relations or marketing department budgets through sponsorships or cause-related marketing (see below for definitions). Non-cash gifts can include: product or services in-kind; use of company facilities; advice and counsel; access to staff either through volunteer programs, secondments, or board membership; and simply being able to leverage the connection to a company.
What is sponsorship?
Sponsorship is a corporate contribution from a marketing budget that is regarded as an investment in return for access to a specific market, often associated with an event or program. It is not a philanthropic contribution: it is a marketing expense made with an expectation of a return on their investment. A sponsorship fee needs to be justified just like other items of a marketing budget such as advertising and publicity. Corporate marketing budgets are dollars spent to position business goals. Businesses that support charities with sponsorships want to know the impact of those dollars so that they can determine a return on the investment. Libraries must recognize that their business partners have expectations that must be delivered on for the partnership to be successful.
What is cause-related marketing?
Cause-related marketing or corporate social responsibility is a fairly recent concept developed by the business world. It is not about philanthropy: it is about how companies earn their money rather than how they spend it on good works later like donations or sponsorship. Business for Social Responsibility defines it as ‘achieving commercial success in ways that honor people, communities, the environment and ethical values’.
Why does business give?
Most often businesses support charities that support their own business interests. An example would be that a local book store supports a program at the library because their business interests match through their shared concern for literacy. In the case of sponsorships, a business gains access to a certain market by sponsoring an event. The charity offers exposure through their marketing materials so the sponsors can be visible to the people attending the event. Business also gives to support the community in which they operate, to support the interests of their employees, and to have a role in developing a healthy and sustainable community. It is in a business’s best interest to help sustain a community where they can find skilled and happy employees, and also sustain a market for their product.
What does a business expect from a charitable partner?
Business tends to be conservative in their investments in charitable partners. They are looking for credible, respected partners that have a commitment to a particular community concern. They want to partner with charities that get results and are successful. Since their investment is coming from a marketing budget, they are looking for access to an interesting market demographic, access to networks, contacts, or communities of concern. They like business to business (B2B) opportunities; connecting with other businesses that have a similar community concern. If there is a way to profile a new product, or integrate a sales initiative it will get a higher level of interest from a business partner. They like exclusivity; they want something that will differentiate them from other businesses in their sector. They expect the charitable partner to deliver on what they promised, to have some expertise in event management, to manage their profile with respect, and events or programs that exhibit longevity so they can build the relationship over time.
How much does business give?
There is a perception that the business community supports the charitable sector at a very high level. In fact, of the non-governmental money that flows into the charitable sector, less than 10% comes from business. The vast majority of the revenue from private sources comes from individuals – almost 80%. The rest of the money comes from foundations. This data gives you an idea of where to focus your efforts. Your fundraising program should mirror where the money is – 80% of your time and resources should be on individual donors, as that’s where the biggest potential is.
What should we know before we ask for businesses to support us?
You should do your research on a business partner much the same way you would research an individual donor. Most businesses have defined giving interests – that is to say, they know the broad areas that they will support, such as children’s charities, or cancer, or United Ways. Most businesses these days strategically plan their investments in charities to align with social issues that integrate with their core business. They are looking for investment opportunities that will have a high impact among their stakeholders and be visible to key audiences. If you don’t know where your program fits in, what audience you serve, or what issues you are addressing, you will have limited success attracting business support.
Who should do the asking?
Often having the right person ask on your behalf will trump any other aspect of your partnership proposal. One of the best ways to secure a corporate contribution is to have a peer of the business leader ask on behalf of the library. This can circumvent any formal process, or at the very least get your foot in the door. However, it can also backfire. If donations officers inside bigger companies tell you to abide by the formal application process, respect that! It is always a good strategy to cultivate relationships with business leaders in your community, either individually as board members or on an advisory committee, or through service clubs and chamber of commerce associations. This can help ease the process of applying for support from local businesses, especially if they are aware that you will be submitting something for consideration.
What makes an effective proposal to business?
There are some standard elements that should be included in any proposal. These include: a project outline, anticipated outcomes, who will be doing the work, why the library is the best organization to be doing this project, and a budget. But an effective proposal to business will clearly state why this business should have an interest in you and what you are doing. In the proposal, you will outline that you are looking to them to partner with you because you are both concerned about the same issues in the community. You must demonstrate that you understand where the money will come from: a donations budget, a marketing budget, or an employee fund, as each will have a slightly different approach. Who delivers the pitch or endorses the project on behalf of the library will have a big impact too, as business is peer-driven. Having a business leader ask on your behalf, either in person or in writing will benefit your request.
What information should be in a sponsorship package?
Since sponsorship is all about marketing and making marketing decisions, you must demonstrate that investing in your program or event as a sponsor is a good strategic marketing choice. You will need information about who your audience is, the demographic profile of attendees, what kind of marketing materials will be developed to support the event and the quantities of each, what kind of media support is being developed, and what kind of exposure the sponsor could expect. So in order for you to make your sponsorship asks effective, you’ll need to have your marketing plan developed and your schedule of benefits and recognition set. Use this inventory checklist (.pdf) to help you determine your schedule of benefits and recognition:
Why you need a corporate sponsorship policy?
Policies for corporate sponsorship should give both partners guidelines for, and set out expectations of, the partnership. Of primary importance is preserving the mission and values of the library and it must be explicit that partnering with a business will not influence the library’s priorities. The policy should make it clear that the library welcomes corporate support for its programs and services, but the nature of this partnership will not influence service delivery or collections policy. Of particular concern for libraries is patron privacy and access to patron information. The library’s corporate sponsorship policy should make it clear that the library will not transfer confidential patron information to corporate partners for their use. But the policy should not be so restrictive that it will not allow libraries to be proactive in developing productive partnerships with business
Samples of library corporate sponsorship policies can be on SOLS website.
Where can we go for more information about what businesses give?
Bigger businesses will have a website that usually has information about donation programs and sponsorship. Sometimes it’s difficult to find, but often it’s in a section called ‘in the community’, or more formally, public or community affairs. Some large businesses such as the banks have their own foundations. These have very formal application procedures to follow. There are a few web resources to consult, that direct you to the company website, but they are a good place to start: Charity Village.com, and the Grantsmanship Center (a US site but still has good free listing). There are 3 main subscription services for corporate profiles, including: PRO-online, BIG database, and the online version of Imagine Canada’s Canadian Directory to Foundations and Corporations. These three sites also provide a lot of support material such as how to write proposals, they have refined searching tools, and they allow you to download profile information.