InstructionsIn order to simplify using the e-book and improve the comfort ofstudying, each page contains buttons helping navigation.At the right bottom of each slide you will find buttons letting youmove backwards to the beginning of a chapter -to the beginning of the e-book -and also move forward or backward chapters-
IntroductionThis e-book will introduce you to the arcane of CSR and show you why thisdynamically developing field is so crucial for companies, how does itcombine with Public Relations and social marketing. When applying forsponsor’s support it is worth knowing on what basis companies realize theirstrategy of social responsibility. This course will also show you the mostimportant aspects of sponsorship – apart from the essential theory you willalso find many practical information with international examples. E-bookwill teach you how to prepare an interesting and complete offer for apotential sponsor and also in a further perspective – a proper sponsoringcontract, which would include the benefits and duties of both sides: of thesponsor and sponsee. You will find out why media patronates are soimportant 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!
Table of contentsChapter 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?
Table of contentsChapter 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
Table of contentsChapter 4Types od sponsorship Active Passive Monetary Service Material Exclusive Co-sponsoring How should a proper sponsorship contract look like?
Table of contentsChoose chapter:Chapter 1Chapter 2Chapter 3Chapter 4
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
CSR - Corporate SocialResponsibility 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”.
CSR: the mostimportant 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.
The ways of engaging the company’sstakeholders 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…
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.
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.
Danone Way – the concreteresults 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.
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.
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.
CSR and PR: similarities anddifferences 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.
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.
Cooperation of the non-profitfor-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.
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?
How do the NGOs gainfunds 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
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!
Additional benefits forthe 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.
Additional benefits forthe 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.
Partnership and longterm 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.
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.
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”.
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
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.
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.
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
Let the potential sponsorsknow 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.
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.
How should a professionalsponsor 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!
The detailed offer forthe 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.
Additional elementsof 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.
What characterizes the goodoffer 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
Good motivating ofthe 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?
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.
List of assets ofthe 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.
Other assets ofthe 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
CSR Benefitsfor 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.
CSR Benefitsfor 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.
The goodwill ofthe 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.
The goodwill ofthe 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.
The growth of satisfactionof 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.
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.)
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.
After reading yourapplication … 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!
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”
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.
Building the organizationscredibility 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
Building the organizationscredibility 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.
Chapter 4 - Topics: Types of sponsorship: Active Passive Monetary Service Mate rial Exclusive Co-sponsoring How should a proper sponsorship contract look like?
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)
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.
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).
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.
Elements included in a propersponsorship 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
Why is it worth trying to gainmedia 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.
Why is it worth trying to gainmedia 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.
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.
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.
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.
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...)
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
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
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.
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
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 childrens activities, loud reading, jolly workshops
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
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.