2. Instructions
In order to simplify using the e-book and improve the comfort of
studying, each page contains buttons helping navigation.
At the right bottom of each slide you will find buttons letting you
move backwards to the beginning of a chapter -
to the beginning of the e-book -
and also move forward or backward chapters-
3. Introduction
This e-book will introduce you to the arcane of CSR and show you why this
dynamically developing field is so crucial for companies, how does it
combine with Public Relations and social marketing. When applying for
sponsor’s support it is worth knowing on what basis companies realize their
strategy of social responsibility. This course will also show you the most
important aspects of sponsorship – apart from the essential theory you will
also find many practical information with international examples. E-book
will teach you how to prepare an interesting and complete offer for a
potential sponsor and also in a further perspective – a proper sponsoring
contract, which would include the benefits and duties of both sides: of the
sponsor and sponsee. You will find out why media patronates are so
important and how they are linked to the idea of sponsorship.
E-book is divided into 4 chapters and each of them consists of several parts.
Wish you pleasant reading!
5. Table of contents
Chapter 2
The most important sources of financing for an NGO
Why exactly sponsorship?
Additional benefits for the sponsor and sponsee
Difference between sponsorship and a donation
What is a patronage?
6. Table of contents
Chapter 3
How to find a potential sponsor?
Sponsor’s package
CSR Benefitsfor companies
Budget presenting
Sponsor’s offer, summarize and practical hints
Building the credibility
7. Table of contents
Chapter 4
Types od sponsorship
Active
Passive
Monetary
Service
Material
Exclusive
Co-sponsoring
How should a proper sponsorship contract look like?
10. Chapter 1 - Topics:
Starting point – the most important aspects of
the corporate social responsibility
Map of stakeholders
Ways of engaging the stakeholders
in building company’s value
CSR and PR
Social marketing
Cooperation of the non- profit, for-profit sectors
and the consumer
11. CSR - Corporate Social
Responsibility
The concept of the „Corporate Social Responsibility” does not surprise
anyone anymore. In the present world it is almost a standard that the
entrepreneurs also engaged in some pro-social activities. Companies more
and more often treat NGOs as equal partners in cooperation. Nowadays
every self-respecting corporation has the CSR legacy included in its
mission. The PR departments of big companies very often build long term
PR strategies on the basis of the cooperation with NGOs.
It is worth taking a closer look at the concept of CSR. A great definition
seems to be the one quoted by the Academy of philanthropy in Poland:
„A strategy which includes the voluntary consideration of the social interest
by a company in pursuing economic goals, making decisions and running
activities. CSR is about respecting the ethical rules, rights of employees,
human rights, social and natural environment. It is assumed that CSR
should be an integrational part of the company’s policy, right next to the
economic aspirations”.
12. CSR: the most
important aspects
The word „strategy” itself, which is at the beginning of the definition, already
suggests one of the most important characteristics of CSR: the long term-ness
which is a particular cycle of well considered and coherent activities located
in different time periods. CSR absolutely isn’t a temporary activity, which is
the result of the necessity of a moment („We still have some funds in our
budget, we will allocate them to a noble purpose”). This kind of attitude is of
course and without doubt praisworthy but is not enough to be defined as
socially responsible.
Charity also cannot be called CSR. Philanthropic activities cannot be
considered as the only CSR activities. They can be one of the components of
a long term CSR strategy.
At the basis of CSR philosophy lies the idea of the sustainable development;
it is important that the enterprise keeps the sustainability between the 3
aspects of its functioning: economical, ecological and ethical aspect. The
commercial success needs to be achieved by an enterprise in a way that takes
into account the ethical values, respecting human rights, development of the
local community and protection of the natural environment.
15. The ways of engaging the company’s
stakeholders in building its value
There are many ways of engaging different social groups in the company’s
activity. In the recent years, during the creation of CSR philosophy, they
were many times modified, being adjusted to the changing reality. If we
assume that the criteria of division is the implement and level of
engagement of the stakeholders within the organization’s activity, we can
be talking about the four most important ways implemented by enterprises
to engage the social groups:
Communication
Social consultations
Social dialogue
Let’s take a closer look at
the above methods…
16. Communication
The process of informing partners about the company’s activity is the
fundamental and probably the most obvious method of engaging the
company’s stakeholders. In order to achieve it, organizations use one-way
communication tools, such as:
Brochures
Reports
Press information
Internet websites
The exchange of opinions is in this case very limited, this is why there are
complementarily used methods, thanks to which the possibility of
communication with the enterprise is bigger. It is worth mentioning the
press conferences, which are a very popular way of communicating with the
stakeholders.
17. Social consultations
Gaining the stakeholders’ opinions on chosen subjects, connected with the
organization’s activities or planned decisions, is in compare to communication, a lot
more advanced interactive way of contact.
Most often are used to ols such as:
Questionnaires
Canvass opinion
Example:
A good practice in the field of social consultancy is definitely the Danone Way
programme, which’s goal is to constantly improve people’s and enterprise’s
qualifications in frames of CSR. Danone way is a method with which the enterprise
wants to communicate and cooperate with others but also is a tool supporting CSR.
Invites the employees of Danone to rate the enterprise’s activity with reference to
about a hundred of business practices which serve making good relations with the
employees, social communities, clients, consumers, contractors and shareholders.
This complex programme allows each of the enterprises from the DANONE Group,
where it is implemented, identify those areas, which need improvement.
18. Danone Way – the concrete
results of social consultancy
Danone Way is not an idle talking nor claptrap. In the year 2004 39 concrete assignments were
elaborated, within which until the mid 2006, 90% were put into practice. Among them you can
find significant achievements in all six main fields, being taken care of by working groups. In the
group of “employees” it was managed to organize PR panels for all company’s managers,
implement the first rules of the “sustainability work-home” programme and also elaborate
internal communication strategy. The “clients and consumers” group worked on investigating
the client’s satisfaction and also updated the rules of crediting policy for clients. Groups
responsible for the “contractors department” took care mostly of the rules of service shopping.
Sector “environment” – of the development of the ecological policy and communication on
obtaining the certificate ISO 14001 by Danone. Equally important were the proposals made by
“the social communities” (development of the practices programme and “Share a Meal”
programme) and “shareholders” (workshops under the banner of “finances for non-financiers”).
The fact that during the workshops and working groups - such a big and diverse group of
employees has the right to express their opinion - has a positive input on the quality of the
enterprise’s work and functioning. Thanks to them the representative of all organizational levels
can get to know more about their collegues from other departments but also actually influence
on the opinion on Danone’s activity and the company’s future. The fundamental fact is the fact
that in the working groups everyone has the right to express their opinion – and everyone can
take a bit of responsibility of the company.
19. Social dialogue
This is for sure one of the most complex methods of engaging stakeholders. Not
only allows the bilateral communication but also is a perfect tool to elaborate the
complex CSR strategy. The social dialogue may have the form of:
Panel discussion
Dialogue session
It is important that in this case both
sides have the possibility of presenting
their point of view, what helps in preparing
solutions satisfactioning everyone.
20. CSR and PR
Many people treat as equal the Corporate Social
Responsibility and Public Relations, stating that
CSR is a tool in hands of a PR specialist. Some do
not really agree with this opinion and treat CSR
as a totally separate activity. There is no doubt
that on many levels CSR and PR work together.
In many corporations, programmes involved in CSR are run by the PR department,
which often cooperates with the personal department. It is very rare in the
companies to create a separate working position of a CSR manager, and a real
phenomenon is to create the whole separate department which is responsible for
social projects.
21. CSR and PR: similarities and
differences
We can often come across the expression that „PR is an honest, objective,
professional and competent, full, quick, media and public friendly, ethical and
responsible”. In deed, the biggest force of PR is surely the reliable and true
information. In this place we can freely state that it is the joint point of PR and CSR
because the philosophy of CSR is based also on the reliable information.
Other definition describes PR as „building relations with groups which are
necessary for the right functioning of the company”. It is a systematic and long term
process and this points out another similarity between those two concepts. CSR is
also a long term strategy, involving a cyclic social dialogue.
Although that CSR and PR often match, you cannot put a mark of equality between
them. They have different directions and goals – while PR serves creating the
company’s positive image, CSR is an action of building the philosophy of company’s
functioning.
22. Social marketing
Touching upon a subject of CSR it is impossible not to mention the social marketing
phenomenon. It is nothing else but activities run by some commercial companies,
using money, techniques and marketing strategies to support socially important
issues, at the same time strengthening their company’s business.
How does it work?
Thanks to those activities, companies promote their image in connection with the
case they are fighting for, which leads to money growth for a particular case and at
the same time benefiting in this field by improving the company’s image,
underlining the specialty of the product, strengthening consumers’ loyalty and
increasing the amount of sold products.
The consumer before buying a product is being informed about what percentage of
the income is destined to a particular purpose and consciously decides whether to
join or ignore the action. Socially engaged marketing allows both clients and
companies to support the action or Idea, increasing the company’s turnover at the
same time.
23. Cooperation of the non-profit
for-profit sector and a consumer
Socially engaged marketing requires an understanding between the non-profit, for-
profit sectors and a consumer. The consumer while buying particular products
becomes, together with the commercial organization, a donner for a social
organization. The essence of the matter is the maximalization of benefits of all
sides
Enterprise (for-profit) searches for solution, thanks to which the company will be
seen as a socially friendly and thanks to which will increase the turnover and
strengthen its own image among the potential clients, both directly and indirectly
interested in a the particular problem.
Example:
The rules of the social marketing are used since many years in Poland by the Protect
& Gamble concern, the producer of brands such as Gillette, Pampers, Always, Ariel -
which together with the Polsat Foundation - encourage people to buy products with
a sign “Give the Sun to Children”. A defined percentage of income is given to the
Foundation.
25. Chapter 2 - Topics:
The most important sources of financing for an
NGO
Why exactly sponsorship?
Additional benefits for the sponsor and sponsee
Difference between sponsorship and a donation
What is a patronage?
26. How do the NGOs gain
funds for their activities?
In their everyday activities NGOs need to manage with financing projects
they run. This is why associacions and foundations use many different
kinds of sources to finance their projects. These are for example:
membership fees
financial and material donations
dotations from private and public sources, including EU funds
1% write-off from the income tax (public benefit organizations)
public assemblies
income from the organization’s properties
income from the payable public benefit activity
income from business
credits, loans
27. What is sponsorship?
One of the most popular methods of financing for NGOs is SPONSORSHIP.
Why is this form of financing the NGO activities so popular? The reason is
easy. Let’s take a closer look…
Sponsorship is a mutual obligation of both sides: the sponsor and sponsee,
which is in our case a company and an NGO. Sponsor transfers the
financial, material funds or services to the sponsee, in exchange of
promotional services from the sponsee side.
Measurable benefits from this kind of cooperation GAIN BOTH
PARTNERS!
28. Additional benefits for
the sponsee:
Cooperation with corporations representing popular brands, positively
influences the NGO’s image; thanks to cooperation with a well know brand,
an NGO is placed on an equal footing with it - as a rightful partner.
Example:
A perfect example of high positioning of an
NGO is the cooperation of Stowarzyszenie
Autokreacja with a five starred hotels in the Project „Youth Carter
Initiative”, within which hotels offered a 20 weeks long internship plus
theoretical workshops and English classes destined to teenagers with a low
social status. Five starred hotels are the synonym of the high quality
services, and with this Stowarzyszenie Autokreacja wanted to be identified.
29. Additional benefits for
the sponsor:
Cooperation with NGOs:
Creates a very positive image if the company, which is not only
concentrated on profit but also on other socially important activities
Secures the company with presence in media reporting the particular social
project, which strengthens in receivers the knowledge of a certain brand.
To ensure themselves the presence in media, companies must usually
allocate big amounts of money on advertising. These are very often
amounts significantly exceeding the possible sponsoring services. Briefly
speaking, sponsoring of a socially important undertaking, may be more
profitable when speaking about the overall costs.
30. Partnership and long
term cooperation
It is worth being conscious of the fact that sponsorship is often a planned
and conscious activity, serving the creation of a positive image of the
company. Very often is a part of a long term marketing and PR strategy of
the company.
Remember!
The cooperation with business ought to be undertaken with the thought of
PARTNERSHIP AND LONG TERMCOOPERATION. partnership and long
term cooperation.
A common mistake of the NGOs is to take no notice of real partners in the
entrepreneurs but only the source of money. This kind of attitude very
often creates relations in configuration „client – contractor”. When
partnership relations are missing , the cooperation has no chance to
survive.
31. Sponsoring and donation
It is important realize the main difference between the sponsorship and a
donating. Sponsorship is a bilateral commitment of both sides: the sponsor
and the sponsee. The main element of this kind of cooperation is the
sponsor’s commitment to finance a particular social undertaking, in
exchange of promotion services from the sponsee’s side. The sponsor’s
attitude is not disinterested in this case – he expects some measurable
benefits.
Things look different when talking about a donation, where the donner
obliges himself to services free of charge for the granter. In other words, he
does not expect any benefit for himself after making the donation.
An interesting phenomenon, associated with the concept of sponsorship
but functioning within the superior culture is a patronage. This term
originates from Ancient Rome Times and nowadays means taking care of
art, literature and covers not only individuals but also big corporations and
institutions (this is a phenomenon similar to sponsorship but within the
sphere of the superior culture). The patron does not expect any
promotional services in exchange.
32. Patronage – example:
At this point it is worth mentioning the company Energa, which was
nominated to Pomorska Nagroda Artystyczna Award, in the category of the
culture patronage - for its activity in the field of culture. The chapter of this
most prestigious prize for artists, appreciated the company’s patronage over
many cultural events: concerts, exhibitions and contests.
Energa professes the philosophy that culture is the foundation of social life,
creates ideas and those ideas change the world. This is why the company
supports cultural undertakings – beginning from those spectacular ones,
through those less known but meaningful to the local societies, egg:
Ive Mendes’ concert, which took place during the jubilee celebration of the
15th anniversary of Radio Plus
The Stars Festival in Gdańsk - the summer meeting of theatre and film
creators and artists
In April 2007 Energa was the patron of release of a multimedia album of
"Droga. Misterium Męki Pańskiej. Kalwaria Wejherowska. Gdańsk"
Energa was also there while organizing the Jean Michael Jarre concert
during the 25th anniversary of “Solidarity”.
34. Chapter 3 - Topics:
How to find a potential sponsor?
Sponsor’s package
CSR Benefitsfor companies
Budget presenting
Sponsor’s offer, summarize and practical hints
Building the credibility
35. How to gain a sponsor?
Personal contact is a very effective method of gaining sponsors. This way of
initiating the cooperation brings a lot better effects than e-mail or phone
contacts.
Attention! :
One of the most effective fundraisers, who gained money for projects
supporting homeless people, said that every time he had managed
to persuade the potential donors to visiting the place where the concrete
project had been held, nobody had ever refused giving him money. When
guests were being convinced of the importance of the project, by seeing it
on their own eyes, they were becoming generous.
It rarely happens that the company turns to an NGO itself with a proposal
of cooperation. This is why it is important that the NGO initiates contacts
with potential sponsors, regularly send out press information about its
activities, promote its programmes in media. One of the most important
contact people for the NGO workers are the CSR and PR specialists.
36. How to gain a sponsor?
Example
An excellent example of this kind of activities is the annually organized
by Stowarzyszenie Autokreacja „Thank You Event”. Since many years
this ceremony takes place in many prestigious places, for example at the
residence of the British Ambassador or at the Business Center Club. It is an
ideal occasion to invite the previous partners to participate in the event and
also to honour the most active ones with a diploma. It is also a perfect
moment to invite all potential sponsors who have an occasion to see how
appreciated are the partners of
Stowarzyszenie. The organization of the
event is not of a big cost because many
institutions very often let use the room
free of charge and the catering may be
sponsored.
37. Looking for a sponsor
Before you begin to prepare the offer for a sponsor, make sure you
“reconnoited” well. Remember: the better you get to know your potential
sponsor, the bigger possibility is that your proposition will turn out to be
the bull’s eye.
Analyze precisely:
size of the company
branch
target group of the company
range of operations
financial resources
addressee of the sponsorship offer, who will be in charge of your
application
what comes out of published by the company CSR/PR strategy, what are
the priorities
who was given the dotation in previous years
how big are the dotations from the sponsor
what is the application procedure
38. Let the potential sponsors
know you better
It is good to begin the process of building the creditability in a potential
sponsor, some time before we turn to him for money. The list of potential
sponsors should include all those to whom you plan to turn to within the
next two years. Assign them to your newsletter mailing list, invite them to
events you organize, inform about your achievements etc.
Sometimes it is good to begin the cooperation with a sponsor from a
material support or engagement of sponsor’s employees as volunteers.
39. Sponsor’s package
Sponsor’s package has many names… In the language of NGOs functions also
as the sponsor’s offer. But a more elegant and sophisticated name seems to be
„partnership programme”. Regardless of the name, what is important is that our
offer should interest the sponsor.
The competition among those who try to gain the money is so big, that the
sponsors have a big choice. And only those most attractive and professionally
prepared projects have the chance to be financed.
Let’s take a closer look at the concrete example
of the partnership programme, that is shown to
potential sponsors by the Fundacja Inkubator
Technologiczny, which supports young entrepreneurs.
Within the framework of the programme young
people starting up with their own business,
get access to low interest loans and to mentors’ help.
40. How should a professional
sponsor offer look like?
It is worth using the rule of gradation. You may use the expressions:
programme sponsor, strategic partner of the programme, strategic partner.
Popular forms of gradation among the NGOs are also expressions like:
platinum, gold, silver sponsors etc.
To every „sponsor’s level” there should be ascribed a concrete amount of
money, accompanied with concrete benefits for the sponsor (of course the
obligatory rule is that: the bigger amount of money, the more benefits for
the sponsor.
The offer should be concrete, the difference between all sponsorship levels
should be clearly stated.
It is worth mentioning the names and contacts of people who may provide
additional information on the project and sponsorship package.
It is good to upload the sponsorship package on the website of an NGO.
It is also good to have prepared an English version of the offer – remember
that very often foreigners are the directors of big corporations!
41. The detailed offer for
the project’s realization
The offer for a potential sponsor in a form of an application should include:
Title – must be short, easy to remember and catchy!
Summery – in case of a realized programme – an introduction, short history of the
programme (what was achieved, numbers); in case of a new project – a short
summary, what we are planning to do, for whom and why.
Who you are (realized projects, successes, team, board)
Goals of the project (what is there to be achieved within the programme)
Good motivation of the problem and analyze of the target group’s needs.
List of advantages (list of reasons, why the project is unique and should receive
support
Plan of activities (should include transparent methods of realization of the goals
described earlier, the order of activities and the target group. The activities should
directly answer the problems and goals stated earlier).
Index and presumed results (how many people you will train , how long will the
workshops last, what will be the participants’ growth of knowledge).
Project’s budget (should be rational, clear and coherent with the activity plan).
Benefits for the sponsor.
42. Additional elements
of the application:
Additional elements of the application:
Request: what amount of money are you asking for;
In support: why the fundator should be interested in your project (egg. sponsor is
somehow related to the subject of your project, in the past you received support
from him and next grant will be a great investment in your success etc.);
Plans of gaining funds for the project, if it is very complex you would need more
than just one sponsor;
Financial plans (explanation of how the project will be financed in the future, is
there this kind of potential);
Attachments – everything that makes the application more reliable, letters of intent,
recommendations, media and honorary patronages, photos, press release etc.
Remember!
It is important who signs the offer for the sponsor! Signing the offer by someone of
not the highest position in the organization (egg. director’s assistant), makes an
impression that you are not treating it seriously. Signature on behalf of someone
important in your organization may give an impression that this person is too busy
to get involved in the project personally or does not want to do it.
43. What characterizes the good
offer for project’s realization?
The good project:
Is an answer to an important and urgent social need
Is fresh and interesting, takes over the imagination
Is brief and written in an easy way
Has got a catchy title
There is something innovative in it, is outstanding
Refers to the current trends, problems and sponsor’s interests
Includes aspects, which may speak to many categories of sponsors
The amount of money that needs to be invested in the project is very small
in compare to the profit and its long term effect
Will bring measurable results
Its goals are measurable, realistic and possible to achieve
There is the potential that will be bringing profit in the future, which will
let it be continued
It is well balanced – the scale of activities is adjusted to the financial
possibilities of the sponsor and organizational possibilities of the NGO
44. Good motivating of
the problem
To describe this point please answer the following questions:
Who does the problem concern, what is the essence of the problem?
What are the needs of the project’s receivers?
What will happen to them if no activities will be undertaken?
What is the range of the problem?
What are the social consequences of the problem, what will be the results
of the possible omission?
Are there any social trends pointing out that the problem will become more
serious in the upcoming years?
Who will profit from the results of the project? Why are those people’s
problems so important?
How will their situation change if the project is realized?
45. Remember!
The application should include creditable data showing the problem’s scale.
Yu should use concrete and possibly actual statistic data, reports and
analyzes (pointing the source). You may also add your own investigations
and experience but cannot base only on them. The data and problem’s
analyze must be adequate to the proposed activities and the target group.
The problem must concern a particular target group (unemployed
teenagers up to 25 years of age, women returning to the labour market after
the material leave). We cannot precise the target group too widely (egg.
local society). You should motivate your choice of the target group
answering on the above questions.
46. List of assets of
the Project
The good project should be innovative. Your project should distinguish
itself! Sponsors look for new solutions to old problems, this is why an
interesting project has far bigger chances to receive the dotation, media
interest and the target group. If you propose for egg. a standard model of
training the unemployed in your project, you will compete with many
other, similar applications.
In case of sponsorship, sponsors very often expect measurable benefits,
like promotion of products/services during the workshops, events realized
within the project, direct contact with the potential clients, information on
products, services in media, on a website, in the promotional materials etc.
47. Other assets of
the project
Other assets of the project:
Engaging receivers of the planned project
Engaging volunteers
Own resources of the organization (office infrastructure, know-how)
Support from other sources, especially governmental and local-
governmental)
Support from the local society
Support from prestigious and opinion-forming individuals
Cooperation with other organizations
Mid and long-term financial sustainability
Gaining material support
48. CSR Benefits
for companies
Example :
A great example of a service company, which, thanks to the sponsorship
activities, systematically created its image, is the Warsaw Sheraton Hotel.
Over 10 years ago the hotel decided to sponsor an event Świąteczna Aukcja
Bombek Choinkowych (A Holiday Action of Christmas Tree Glass Balls),
which was an event organized by The Synapsis Foundation, supporting and
taking care of autistic children. The hotel, using its resources, let use its
ballroom, provided catering and helped in gaining the glass balls, decorated
by well know people. The organizators made sure that the action was very
loudly reported in media – newspapers, radio and TV. There was the hotel’s
logo on the invitations. The action was a success both for the sponsor and
for the sponsee. From that time the Świąteczna Aukcja Bombek
Choinkowych event became the hotel’s December tradition.
49. CSR Benefits
for companies
During talks with a potential sponsor it is worth concentrating on benefits
he will gain thanks to the cooperation with your organization. Prepare
yourself to these negotiations and present some measurable benefits for the
company, such as:
Building a positive image of your company; company, thanks to its
engagement, CSR activities, becomes more credible in the eyes of media
and society; CSR activities may be important elements of the internal and
external PR strategy; it is especially import ant for service companies, which
worked on their image and clients’ trust for years. Good reputation is one of
the company’s resources – although is unmeasurable – is an import asset in
contrast to other offers. You cannot buy it nor gain it the next day, only
build it systematically.
50. The goodwill of
the local society
The goodwill of the local society, which is priceless in crisis situations for
the company.
The social engagement increases the loyalty of the clients and
generates new ones; the modern client is very demanding: he expects that
the product, a part from the high quality, arouses also positive associations.
Catching the consumer’s eye on the advertising techniques is relatively
easy. Much more difficult seems to be chaining clients to the company and
its products. It is almost sure that those companies, which gained the trust
of its clients to their branch by some social activities, will easier regain their
favor in case of failure, than those which are orientated only for profit. It is
worth adding that while supporting some social programmes, we may
widen the knowledge of a certain target group about the company’s
products and even make them popular.
51. The goodwill of
the local society
Company that undertakes CSR activities becomes more competitive on
the western markets, where those kind of practices are in the order of the
day. Companies may compete not only in the products quality but also in
their price and company’s image as socialy engaged.
Bigger interest from the investors’ side, for which the social credibility
is as important as the financial credibility
Attention:
Investors often run a so called ethical screening. What does it mean in
practice? The shares of companies which respect the employees’ rights,
human rights, which are safe, ecological and have good relations with the
society, are included into the investment portfolio. In the same time, shares
of companies which do not meet the criteria, are eliminated.
In a long term perspective – increase of sales and so increase of the
effectiveness; social engagement of the company generates the clients’
loyalty, which later directly influences the company’s stability, its position
on the market and sales.
52. The growth of satisfaction
of the employees
The growth of satisfaction of the employees; company’s social engagement
is one of the elements of non financial motivation of the employees; employees
who are engaged in a social project have the chance to integrate better, learn
how to work together as a group, what they can later use in their professional
work.
Employees identify with the company more, while seeing its social
engagement, what later on influences their loyalty and engagement;
employees perceive the company not only as the source of their wages but also
as a place where they can realize themselves on a different ground.
Thanks to the social engagement of the company, its attractiveness grows on
the market; this enables easier recruitment of new employees and keeping the
best ones. Employees appreciate the company’s functioning, seeing that part of
its activities concentrate on solving social problems and supporting societies to
which they belong. This way a positive image of the company is being created.
Thanks to the social activities, the company’s mission becomes more credible,
the mission contains of aspirations and goals. Strengthening the mission,
by considering the CSR activities in it, automatically makes the company more
credible in the clients’ eyes.
53. Budget
It is important to show the entrepreneur an exact budget of the sponsored
project. It is worth concentrating on budgets with long term cooperation –
there is a big chance that the sponsor will get emotionally chained with the
project and the organization, which runs it. Will also be probably eager to
get engaged as a sponsor in some following programmes.
Be flexible while showing the budget to a
potential sponsor. Do not push you concept
at any price, listen to the oother side. On the
next meeting present the sponsor the corrected
budget, better fitting his needs.
The bigger own contribution of the applicant, the more attractive is the
budget. Remember to include everything that is necessary in the project
and what you can provide yourselves (gaining material sponsorship,
volunteers’ work, indirect expenses such us rent, energy, accountancy
covered by different projects, the partners’ and other sponsors’ contribution
etc.)
54. Presenting the budget
The most difficult issue about the budget is motivating the salaries for the team
working on it and also the administrative costs. Sponsors are not very eager to
spend money on this, stating that the money is not being directly allocated to
the ones in need. The sponsor may think that from every 1000 zł transfered to
the organization, only 800zł will be given to the beneficiaries and 200 zł is just
useless expense. Nothing more wrong! Convince the sponsor that the NGO
builds its additional value through its services and activities (for egg. promotion
and marketing, recruitment and participants’ selection, social campaign
informing about the lack of support, gaining partners, sponsors, media patrons,
supporting the beneficiaries by workshops, seminars consultations etc.). It is
worth showing the budget divided into particular activities.
Attention:
The “leverage effect” is about using one dotation to gain new sources. You
propose the sponsor financing part of your project under one condition: that in
a concrete time you will be able to gain the rest of the money. This lets you
refer to his promise in the process of gaining new sources and he does not bear
risk in case of your failure.
56. After reading your
application …
After reading your application the sponsor should be aware of:
how he can get involved in your programme
why he should get involved in the programme
what are the benefits for the sponsor
why is the programme unique
what is the long term strategic plan of the programme
are there any other partners engaged
what are the main costs of the programme
is the programme sustainable
Remember!
If the sponsor decides to dedicate funds on a particular aim, he should
regularly receive reports from the programme’s realization!
57. Practical hints:
Practical hints:
Work on building a friendly and close relation with the potential sponsor!
Carefully chose an employee, who will represent the organization in
contacts with the sponsors! Do not send a letter entitled „Dear Sir or
Madam”.
Be proactive, do not wait until the entrepreneur will find you!
Be elastic in constructing the budget of your project! Listen carefully what
are the sponsor’s expectations, do not push your concept at any price.
Show the potential sponsor as many benefits he would receive from
cooperating with your organization as possible!
Be convinced of the success! Do not say “we are planning to”, say “we will”,
do not say “we hope to” but “we prognoze that”
58. Increase the credibility
To increase the credibility of your organization in the eyes of a
potential sponsor, point out some additional elements:
Promotion materials of your organization: leaflets, folders
Reports from the activity
Recommendations from your up to date partners
Formal documents: statut, National Court Register, financial statements
Press clippings about the project run by your organization
So called “success stores” – concrete examples of people that your
organization helped
Example
Youth Business International leads a global network of independent
initiatives which provide young people with the opportunity to start their
own business by providing loan and mentoring. One of the best ways to
promote program is to present stories of successful entrepreneurs
supported by a program.
59. Building the organizations
credibility
Success works as a magnet on fundators and so it is worth showing
off with your achievements! This is why:
Collect the recommendations from your receivers and experts’
opinions
Collect the letters of acknowledgments
Create a data base of interesting quotes about your activity
Invite external experts to visit your organization and ask them for their
opinion
Regularly carry out an internal and external evaluation – the note of
effectiveness, the activities’ quality – relating to the key conclusions
from this kind of research
Make sure you are present in the local and nationwide media
Collect the press clippings
Inform the sponsors about any mentionings in press about your
organization
Record the TV and radio programmes and upload them on youtube
Collect the letters of intent, approach honorary and media patronages
Mention other sponsors, especially governmental and private
institutions
60. Building the organizations
credibility
Attention:
To influence even more on credibility of your organization and make your
chances bigger to gain sponsorship, you may introduce some appropriate
people to your organization as:
Honorary members
Advisers and patrons
Council members (for egg. to the commisions responsible for gaining
funds, creating image etc.)
Board members
These may be influential and opinion-forming people - directors of big
companies and representatives of local enterprises.
62. Chapter 4 - Topics:
Types of sponsorship:
Active
Passive
Monetary
Service
Mate rial
Exclusive
Co-sponsoring
How should a proper sponsorship contract look
like?
63. Sponsorship has „many faces”
Sponsorship has „many faces”. Here are the most important ones:
Active sponsorship – takes place when it depends from the sponsorship
contract, how the sponsored event looks like; in other words, sponsor has a big
influence on the final shape of the social activity
Passive sponsorship – in this case the event is being financed regardless of the
sponsorship agreement
Individual – there is only one individual at the sponsee’s party
Group – tere is more than one individual at the sponsee’s party
Monetary – sponsor donates the funds
Service – sponsor offers services (law, accountant, transport, worshops,
promotion – in case of advertisement agences, labour volunteership)
64. Sponsorship has „many faces”
Examples:
A great example of the service sponsorship is the cooperation which
Stowarzyszenie Autokreacja established with the law firm Lovells. How did
that happen? At one point, thanks to the strategic decisions made by the
board, projects run by the organization begun to develop themselves at
incredible speed. It turned out to be, that the organization was at this kind
of level of development, that a real professional advice of a law firm was
necessary. The law firm Lovells appreciated the quality of the projects run
by Stowarzyszenie Autokreacja and agreed to provide law services free of
charge, in exchange of some promotional activities.
Another example of the service sponsorship is the cooperation between
Stowarzyszenie Autokreacja and Deutsche Bank, which decided to offer
free of charge bank services in exchange of some promotional services.
65. Sponsorship has „many faces”
Material – sponsor donates some material goods (egg. computers, printers)
Exclusive sponsorship – when the whole
undertaking is financed by one sponsor
Co-sponsorship – when one undertaking
is sponsored by more than one sponsor
Sometimes we may use the purchasing power of our sponsors, for egg.
when they have better than accessible on the market conditions of
purchasing particular services or goods, that we need (egg. hotels, IT
shops).
66. Sponsorship Agreement
If both parties are interested in cooperation on basis of sponsorship, they
should conclude a sponsorship agreement between each other.
The more detailed the agreement is, the better for both parties. There is no
room for any doubts, the obligations of both parties are clear and
transparent.
To conclude the sponsorship agreement, you may use some free contract
samples, which are available at the internet sites of some prestigious NGOs.
67. Elements included in a proper
sponsorship contract?
What kind of elements should be included in a proper sponsorship contract?
Obligations of both parties should be clearly stated
Elements, which need to be considered: kind of services, their size, time framework and
the way of their implementing; concerns both the sponsor’s and sponsee’s services
You should state exactly how and for how long and with help of what techniques, media,
events the sponsee will promote the sponsor.
The agreement should contain information of how the cooperation should be run
between the two parties
The time and form of realization of the agreement should be clearly stated
In the agreement there should also be an information whether or not the sponsor will
have control over the sponsorship and will be able to give some valuable and binding
hints to the organization
In the agreement it is worth mentioning the names of people responsible for the project
on both parties
68. Why is it worth trying to gain
media patronages?
Concrete data about where, in which media the advertisement of our
project will appear, editorial texts and interviews are of a big value in the
eyes of a potential sponsor.
Media eagerly engage themselves in media patronages of social activities,
which means they assign their advertising space on information about a
concrete social project. Let’s remember that also media create their image.
Similarly enterprises want to be perceived as socially responsible. Media
patronages give them the chance to do it.
For NGOs the media patronages are an extremely important bartering chip
in negotiations with potential sponsors. It is important to present the
sponsor a concrete advertising space, which is guaranteed by the media
patronage agreement.
It is worth concluding agreements for media patronages to be sure what we
can guarantee our sponsor.
69. Why is it worth trying to gain
media patronages?
Attention:
It is worth calculating the value of press clippings. Concrete values better
influence on the potential sponsors’ imagination! Prepare a list of the press
clippings egg. from the last year and check how much that space would cost
in the particular titles. Underline that the value of those kind of articles is
much more high than of a commercial or sponsored article.
70. good examples of CSR
Nestlé supports competition for children
The global company Nestlé also reports for the concept of CSR. The
company has three manufacturing plants in the Czech Republic. Nestle has
a sophisticated strategy which includs internal training, environment and
social and charitable projects. You can find the overall CSR strategy of the
company on www.nestle.com/CSV.
In the Czech Republic, charitable and sponsorship projects run both at
national and regional levels. The national level includes co-operation on a
number of activities with the Foundation of Tereza Maxova. Nestlé also
supports a number of projects linked to the specific location of the plant.
These are focus mainly on promoting of healthy lifestyle and environment.
One of the factories is Sfinx, which is located in Holešov near Kroměříž.
The company sponsors several local sports clubs or race of mountain bikes.
Also, a public swimming pool has been refurbished using funds from
Nestlé. Sfinx announces grant management for local non-profit
organizations and their projects annualy.
71. good examples of CSR
Nestlé supports competition for children
The librarians from department for children of Knihovna Kroměřížska
devised a competition called Knížkometr in 2010. The contest of
competition is intended to promote reading. A pile of borrowed books is
always remeasured by Knížkometr (Book-metr), which was specially made
for this competition. The data are entered into the child passes. A child gets
a reward for every meter of borrowed books. With this in mind and asking
for a handout in the form of sweets, librarians turned to a representative of
Nestlé Holešov. The competition had a positive response at the firm. The
library finally got 10,000 CZK in addition to the products of Nestlé to
purchase of additional gifts for the successful competitors.
72. good examples of CSR
The benefits of cooperation with private sector
The cooperation with the private publishers has been mutually
advantageous. In most of the cases, library has been purchasing products
for the needs from private suppliers who can offer an advantageous rebate
up to 30%.
Knihovna Kroměřížska – town public library used to buy new books in
normal shops 10 years ago and the rebate made up to 10% only. After that,
Knihovna Kroměřížska made enquiries to the suppliers who are
represented by a broad spectrum of the publishing houses and we purchase
books from them.
The cooperation has been found mutually profitable as the higher the
rebate is, the more books we can buy. It has also been found advantageous
by our customers as they have more books at their disposal.
73. Case study – literary park
Regional Library in Žilina
Founded by the Self-Governing Region of Žilina
The most visited cultural institution in the region
Cultural, educational and information institution, starting its history in
1924
The institution budget comprises:
Contribution of the founder (major part) and users membership fees –
covering overhead expenses, costs of materials and energy, acquisition of
books, costs for other library services in accordance with the Library Act of
the Slovak republic
Acquired financial resources via submitted projects – covering additional
activities of the library (educational and cultural activities for the broad
public, e.g. seniors, children, disadvantaged people, and majority...)
74. Case study – literary park
Additional financial resources:
EC programmes: European initiatives and structural funds, European Social
Fund
Government programmes: Ministry of Culture to support cultural
activities, nation-wide programmes supporting employment of
disadvantaged people and life-long education of employees
Municipal and regional grant systems focusing on cultural and social
development of the town and region
Non-government foundations from Slovakia and abroad (Nippon
Foundation in Japan, Korea Foundation)
Individual donors
75. Case study – literary park
Building up the Literary Park:
Project having joined the community
Example co-operation and fund-raising encompassing the broad public.
The idea of improving and cultivating abandon, useless space in the centre
of Žilina was challenged by the group of people close to the library.
(librarians, readers, library friends and neighbors)
The public space behind the library:
In June 2005 and 4 months later
76. Case study – literary park
Mission of the project:
To create a space in the centre of town - place of relaxation, meeting with
friends, summer reading, or pleasant well-being.
Project supported...
500 citizens actively supported the project
The Self-Governing Region of Žilina and the Chairman himself
The Municipality of Žilina
The Mayor of Žilina
Schools, companies, organizations in the town
With this support, we will apply for grant under the programme Prie-story -
the place unifying people - the new space must have been a compromise of
people who would use it.
77. Case study – literary park
Publicity of the project:
Press reports to the national press agency
Regional radio, newspapers, and television
Leaflets to the local community
Financial support:
Community project submitted to the Ekopolis Foundation and Czech-
Slovak Commercial bank - 5 000,00 € acquired
Non-financial support of the project releasers reached 11 000 €:
More than 1 800 volunteer hours were worked ( librarians, students,
readers, architects, civil engineers, citizens of Žilina)
Municipality of Žilina and Self-Governing Region of Žilina arranged for the
park cultivation and planting the greenery
Commercial companies donated material and services (stone, wood,
machinery used in the park)
Individual donors of material and services
79. Case study – literary park
The park has been used by the citizens of Žilina for approx. 5 years …:
For having rest, stop and well-being.
For open-air language lessons of the neighbouring schools
For meeting with friends and neighbours, for summer reading
For open-air language lessons of the neighbouring schools
For meeting with friends and neighbours, for summer reading
For children's activities, loud reading, jolly workshops
80. Case study – literary park
The Regional Library of Žilina for building up the park was awarded:
the nationwide price for the support of the local democracy - 1st place
the price of Slovak Library Association for Special Act of the library – 1st
place
81. In the end
Keep in touch with your current sponsor!
You have managed to get a sponsor? Congratulations! But remember:
Immediately thank your sponsor for any form of support. Immediately answer all
questions and correspondence from the sponsor.
Send your sponsor the annual report, promotional materials, published materials which
can be interesting to the sponsor, even if at this particular moment you are not trying to
receive a grant from him. This way you will show, that it is important for you to keep in
touch , not only to gain money.
Report your work in form of partial reporting (about the progress in the project’s
realization) and the final report. Include not only the results of the work (this what has
been done) but also changes achieved thanks to your work and their money.
Invite the sponsor for a visit in your organization or organize special events where they
can come (egg. An Open Day).
Work on strengthening the informal relations with the sponsors. Initiate a conversation
during a conference or a business mixer.
