Corporate giving final


Published on

This presentation will provide an overview of the basics of corporate giving and sponsorships, as well as insider tips on building a strong corporate giving/sponsorship program. The presenters will also discuss how corporate donors’ expectations have changed in a post-recession world, and what these changes/trends mean for corporate fundraising strategies.

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • AnthonyQuick poll of audience:Size <500k, 500k-1mm, 1-5mm, 5+Type of orgPositionsLength in position
  • Hans--Outline of presentation:DefinitionsChanging world of corporate philanthropyRelationship building and securing support
  • Anthony 1-4Hans Moves Mgmt.The Chronicle of PhilanthropyBig companies gave 4% more in 2012 Donations of products are growing at a faster rate than cash. Overall corporate giving, when both cash and products are counted, rose by 14.9 percent in 2011.The median percentage donated from profits is1 percent--“Corporate giving, also known as corporate philanthropy, refers to the act of for-profit companies donating some of their profits or resources to charity. Donations may come from the company directly, or through a separate, company-sponsored foundation or public charity”--Company-Sponsored Foundations:are separate legal entities, maintain close ties with the parent company, and their giving usually reflects company interests.can be private foundations or public charities.generally maintain small endowments and rely on regular contributions from the parent company and/or subsidiaries to support their giving programs.often grow their endowments in profitable years and tap them in leaner years.must follow the appropriate laws governing private foundations or public charities, including public disclosure requirements.--Corporate Direct Giving Programs:Money comes directly from company profits often include employee matching gifts and in-kind giftsare often used to support programs that do not fall within the guidelines of the company-sponsored foundation.--Corporate SponsorshipsA contribution (cash and/or in-kind) is made to the nonprofit in order to receive agreed upon benefits that further the company’s objectives.Logo placement, Sponsorship recognition, tickets to an event, etc. Corporate support usually related to some kind of visibility; may come from a marketing budget: “A charity can, without being taxed, accept any payment - which may be money or in-kind payment of property or services - as long as there is no arrangement or expectation that the sponsor will receive a “substantial return benefit”, as defined by IRS regulations.” are not the same as Corporate Philanthropy--Moves ManagementDiscovery/QualificationThe act of learning about a prospective donor such that the development officer can make a decision about whether the prospect has a likelihood of giving.Prospecting/prospect researchUsing the Internet and other technologies to collect, evaluate, analyze, organize, package and disseminate publicly available information in a way that maximizes its usefulness and enables accurate and educated decision-making. Adapted from: Association of Prospect Researchers for Advancement, and maintaining the interest and involvement of (a donor, prospective donor, or volunteer) with an organization's people, programs, and plans. Adapted from “The AFP Fundraising Dictionary Online” - the Promise - Ongoing process of making the donor feel satisfied with their experience and proud of their investment in the organization.
  • HansAsk Audience.
  • HansWhere should your organization focus its efforts?
  • Hans
  • HansNotes:-Chronicle the full scope and scale of contributions by Fortune 500 global companies.-Carried out in early 2012, the survey of 2011 corporate giving data received 214responses, including 62 of the top 100 companies in the Fortune 500.
  • Anthony
  • AnthonyGrowth in corporate giving will be moderate in the coming years Despite the expectations back in 2009 that corporate giving would take a long time to recover, most firms were quick to restore their grants and donations to previous years’ levels.Fewer grants, but more higher-level gifts:The number of total grants is on the decline, but their monetary value is increasing. Two reasons are behind this trend: First, companies are overwhelmingly becoming more strategic about where they donate moneySecond, companies want those grants to go to organizations where the work aligns with the companies’ business interests. Non-cash giving is volatile: Non-cash donations, such as information technology equipment or land, showed larger swings in total amounts donated the past few years. Who’s the most generous with cash?Energy companies and utilities lean heavily on direct cash donations. Except Renewables.Financial companies, and then manufacturers, primarily fund philanthropic donations through their charitable foundations. Some banks still struggling and focused more on CRA. Companies in the Consumer package goods, health care and retail industries leaned toward non-cash donations. The more business a company does abroad, the more likely international donations are a large part of those philanthropic portfolios.
  • AnthonyNo different that with individuals
  • AnthonyHans
  • Hans
  • Hans--Scanning -- looking everywhere - magazines, newspapers, social media, events, who is funding other organizations, relationships that lead to possibilities (e.g. board, ED/CEO, relationships you develop yourself)Example: Vernier Software and Technology (PBJ fastest growing list)--Attend networking and other philanthropic events--Start in your own backyardVendors, Neighbors, volunteers, etc.
  • Hans--Gauge interest in cause, company guidelines, connection to organization, etc.--Prospect research => fit--Meeting/conversation - - in person/over the phone if you can get it, rather than in writing, allows a conversation to be more generative and creative
  • AnthonyHans--ask open-ended questions: How are your priorities evolving? How have they changed? How does decision-making happen? when are decision considered? What’s important to your company, in terms of nonprofit partnerships? What kind of impact? What kind of visibility? what’s the range of your giving?
  • Anthony
  • AnthonyUnderstand sponsors’ needs Sponsors do not provide funds because they feel benevolent. They have a number of marketing and corporate objectives that sponsorship can help them to meet. When you are seeking sponsorship for your organization, it is important to understand the drivers which include: selling more product by increasing the visibility of their brand; raising their profile by association with your challenge; improving their corporate image by involvement in appropriate activities; meeting corporate responsibilities by supporting good causes; achieving product endorsement through association with a successful event/participant; hospitality opportunities by inviting clients to high profile events run by you; improving employee relations through hospitality or association with a high-profile challenge; improving media coverage (within the company (employees, shareholders), the sector they are in (suppliers, customers) and of course externally (to the public and media).
  • Hans--What are the strengths of your organization and how can you play to those? Can you create a unique experience?    Build a strong relationship outside of you - builds more affinity and minimizes risk related to turnover    As you cultivate, add a few small touches, but be wary of being too aggressive    How do you prep your executives? Briefings that include - background, strategy, talking points, outcomes, next steps?   --Ask (strategic) questions to discover: interests, connection point(s), decision-making process, relationship, timing, priorities    Do extensive homework before a meeting/interaction    
  • Hans Examples: Umbrella Tours at PSU; Site tours with donors/potential donors Example: Safeway and The Freshwater Trust -- weren’t doing work in key areas where they funded but could provide some visibility
  • Anthony
  • Anthony Hans Easy to digest and understandPresent a compelling vision and talk about the unique niche and importance of your workSpend the money on marketingExample: Share electronic copy of PSU’s case statement for scholarships
  • Anthony Hans Align solicitation with everything you have learned     Can you be creative? - i.e. SBAD gala and event sponsorships and scholarships    Pre-meeting/conversation to flush out best chance of success    Ask amount - no hard and fast rules, just guidelines -  scanning, company size, previous conversations; sometimes ask high, sometimes ask in the middle; depends on how close the relationship is; how excited they are    Be thoughtful about who to involve - peer to peer (when peer is giving) is strongestScript all involved, and have a short strategy meeting ahead of timeBe thoughtful about when relationship/other factors (e.g. decision-making timeframe) indicate that it’s time to ask
  • Anthony Make it fun and engaging.
  • HansShow OMSI & PSU Sample
  • Hans
  • AnthonyHansMy preference is to walk through a proposal in person - softens, creates ability to ask questions    Script the meeting and roles -- who will do what, when? When will you provide the handouts? What can make you stand out? Can you bring a beneficiary or show a video/pictures?    Ask for meeting when the time is right    Be short - ideally, no more than 5 minutes of you talking by yourself    Follow-up    Be clear - objectives/outcomes, solid budget    Example: Local engineering firm (Glumac) and 10-minute pitch
  • Hans
  • Anthony
  • AnthonyShow Sample
  • AnthonyWhat “NO” might mean: Lack of infoNot of interestAlignment/Benefits not seen No philanthropic interestInsufficient cultivation
  • Anthony
  • Hans
  • HansExample – PSU - after event, meet with top sponsors, deliver pictures with VIP and discuss ROI
  • Hans
  • Anthony
  • Corporate giving final

    1. 1. Corporate Sponsorships:Perspectives From BothSides of the TableHans VanDerSchaafPortland State UniversityDirector of Corporate and Foundation Relationshansv@pdx.eduAnthony PetchelOregon Museum of Science and IndustryDirector of
    2. 2. ObjectivesTrends in corporategivingNew tools in yourtoolbox
    3. 3. DefinitionsCorporate GivingCompany-Sponsored FoundationsCorporate Direct Giving ProgramsCorporate Sponsorships• Discovery/Qualification• Prospecting/prospect research• Cultivation• StewardshipMoves Management:
    4. 4. Changing expectations andtrends in corporate givingWhat has changed sincethe recession, in terms ofhow companies want tointeract with nonprofits, andhow nonprofits need tointeract with companies?
    5. 5. Source: Giving USA 2012 Executive SummerySources of Giving
    6. 6. How much should I focus onCorporate Giving?Where should your organizationfocus its fundraising efforts?What is normal for your sub-sector?Tip: Use corporate giving toleverage individual giving.
    7. 7. How is corporate giving distributed?Giving in Numbers, 2012 Edition, Committee Encouraging Corporate Philanthropy,
    8. 8. 2013 TrendsGive More71%Give Less2%Stay TheSame27%0%2012 Corporate Giving Survey
    9. 9. Changing expectations andtrends in corporate giving• Not all sectors have returnedCompanies are giving again, but growth will bemodestAverage gift size has increased, but companiesare giving to fewer nonprofitsDecisions are taking longer and need more leadtimeGiving is more focusedThe larger the gift, the more involved thecompany needs to be (i.e. having a board seat)
    10. 10. The Process of BuildingCorporate RelationshipsThe key to success:Building and maintaininglong-term relationshipswith your donors andpotential donors.
    11. 11. Prospecting/Discovery/QualificationCorporatePerspective• How docompanies like tobe approached?• What turns themoff?• Why won’t theyreturn my call. . .NonprofitPerspective• How do youfind/discoverpotential newdonors?
    12. 12. Who are the decisionmakers?TypicalDecisionMakersPresident/CEOSenior ManagersBoardMarketing/PR DirectorsCorporate Foundation/Giving Manager
    13. 13. Prospecting/DiscoveryScanning EventsStart in yourown backyardDon’t for getLinkedInLookingEverywhere
    14. 14. QualificationHow do you qualify?Prospect researchMeeting/conversation
    15. 15. Qualification: Initial MeetingCorporatePerspective• Do your homework!• Ask about thecompany first• Know how yourmission aligns withour company• Dress Appropriately• Be conscious oftheir timeNonprofit Perspective• Do your homework!• Ask open-endedquestions
    16. 16. Qualification: Initial MeetingDoNot•Ask for moneyon first visit•Comeunprepared•Forget tofollow-up
    17. 17. Understanding Corporate Needsand DesiresCorporate Perspective• Ask• But, do your homework first• Remember not all corporate isphilanthropic• Think outside the box• Know your audienceNonprofit Perspective• Ask (strategic) questions to discover:interests, connection point(s), decision-makingprocess, relationship, timing, priorities• Do extensive homework before ameeting/interaction
    18. 18. RelationshipBuilding/CultivationCorporate Perspective• Cultivation is anongoing process• Keep in contact, notjust when you needsomething• Give first• Be AuthenticNonprofit Perspective• Be Creative/ThinkOutside of the Box• Build a relationshipwith your organization- create multipleconnection points• Be present, but notoverbearing• Position your programand organizationalleaders for success
    19. 19. RelationshipBuilding/Cultivation• Donor tours• Volunteer opportunities• Introductions (such as tothe Board, othersponsors, etc.)• Check-ins (no ask)• Nominate for awards• Send articles of interestCultivationideas
    20. 20. RelationshipBuilding/CultivationTip:If you wantMoney, askfor Advice.If you wantAdvice, askfor Money.
    21. 21. Crafting the CaseCorporatePerspective• How does yourcase align with thecompany’spriorities?• Keep it simple• Appearancematters• Spend the moneyon marketingNonprofitPerspective• Short• Compelling: stories(heart) and data(mind)• Visually appealing
    22. 22. Solicitation StrategyCorporate Perspective• Do your homework• Ask for the rightamount• Lead time (60+days)• Don’t give too manychoices• Who will you ask• Who will be asking• ObjectionsNonprofit Perspective• What type of ask?• Event, gala, generalsupport, programsupport, etc.• How much will youask for?• Who will be involved?• What will be thetiming?• Who is youradvocate?
    23. 23. SolicitationThinking beyond Galas, GolfTournaments, Walks, etc.• Adopt a ______ for a year• Other events• Don’t forget in-kind• Bottom-line relieving• Employee giving campaigns• Corporate Day• Non-cash benefits
    24. 24. The ProposalKey Elements• Professional look• Compelling description of event/opportunity• How will the partnership benefit thecompany• Specific benefits they will receive• Audience demographics• A specific dollar amount• Concise• Exclusivity?
    25. 25. The ProposalYou should have a variety ofsolicitation materials at your disposal:• One paragraph description• One page fact sheet• Full proposal (3-5 pages)• Cover letter• Response form (if needed)Other materials: annualreport, 990, IRS letters, press kit, etc.
    26. 26. Solicitation- “The Ask”Corporate Perspective• Clear meeting purpose• Appearance matters• Dress the part• Written proposal• Don’t over sell• Know the decision processand timing• Practice giving the pitch• Have answers for objections• Be open to customization• Keep it short and conscious• Be gracious if the answer isNoNonprofit Perspective• Can happen in person(best) and/or in writing• Set up the meeting forsuccess - they should knowyou plan to pitch• Bring the right people• Script the meeting• Don’t do all (or even most)of the talking• Pause when you’re finishedand give them space torespond• Clarify next steps• Follow up!
    27. 27. Solicitation: TipsKnow before you ask• Who- does the Asking?• What- are you asking for?• Where- are you asking?• When- are you asking?• How- much are you asking for?
    28. 28. The “Yes"Congratulations!You secured thesponsorship!Now what?SponsorshipAgreementFollow-throughFollow-upRepeat
    29. 29. The Sponsorship AgreementEvery sponsorship shouldhave an agreement• Formalizes conversation• Keeps both parties on the samepage• Clarifies roles, responsibilities, anddeadlines• Clear deliverables
    30. 30. The 4 faces of “NO”• To this project, but perhapsanotherno• Not now, but perhaps laterno• To the amount asked forno• Forever: the real NONO
    31. 31. Pet PeevesErrors (Spelling, logos, copy, etc.)Last minute requestsUnprofessional appearanceOverselling impressions (quality vs. quantity)No value to companyNot doing your homeworkNot thankingTaking company for granted
    32. 32. The cycle never endsDiscovery &QualificationProspecting& ProspectResearchCultivationStewardship
    33. 33. StewardshipCorporate Perspective• Did we mention follow-up?• Recognition andAcknowledgment• Post-event review (noask)• Formal report• Make sure you fulfilledyour end of the agreement• Keep in contact all year• Remember: the cyclenever ends• Send hand written thankyou noteNonprofit Perspective• Follow-up and morefollow-up, particularly forevents• What was the ROI?• How can you be creativein your stewardship?• Be timely and continuousin communication• Are they using all of theirbenefits?
    34. 34. Stewardship ideasDonor thank you eventNominate for awardsHelping them be successfulInvitation to special eventVolunteer opportunitiesConnecting with othersPress release highlighting sponsor/eventNewsletters articleSocial media tagsList in your annual report, donor wall, etc.
    35. 35. Recap• It’s about themMust bedonor-centric• Appearance mattersBeprofessional• It can take 3-5 yearsThink long-term• The cycle never stopsIt’s a yearround process
    36. 36. Questions
    37. 37. References & Resources
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.