Event Planning - Sponsorship Development (Part II)
- Sean Spence
- Nov 18, 2024
- 3 min read
Structure the Deals
When structuring sponsorship deals, numerous factors need to be taken into account.
Every event is unique. It is advisable to establish various sponsorship tiers, assign a name to each tier, and set different pricing for each.
To reach a certain level, you should aim for four. When setting the cost for the lowest level, consider the highest amount that most of your target audience can comfortably afford. Often, individuals tend to underestimate this amount to avoid excluding anyone, so it's important to be cautious. Keep in mind that the objective is to maximize the fundraising amount.
Assign smart titles to the levels that indicate an increased value as the level cost goes up. Below are a few options arranged from the lowest to the highest:
Guest, Friend, Sponsor, Patron
Bronze, Silver, Gold, Platinum
Topaz, Ruby, Emerald, Diamond
Feel free to be creative when selecting the names, but limit your time to around 10 minutes. Ultimately, the names may be changed, but it will not significantly affect the event's success.
When considering each level, you may choose to offer varying benefits. If the main objective of the event is fundraising - if your effectiveness is determined by the net income - then it is advisable to minimize giveaways. The reality is that when the cause is worthy, individuals donate to endorse it, not for the rewards they receive.
When organizing fundraising events for political candidates, it is advisable to establish different contribution levels without focusing on offering costly benefits. Instead, provide simple recognition to donors and collect their contributions. Remember, every dollar spent on benefits is a dollar that could have been saved for future expenses.
Benefits that are free of charge include assigned seating; having your name listed on the programs and/or signage; being mentioned from the podium or in promotional materials; and having special symbols on your nametag. Benefits that come with a cost include purchasing event tickets or reserved tables and receiving small gifts (typically promotional items related to the event or cause).
Pursuing Sponsors
The process of developing sponsorships is similar to attracting individuals to your event - establish a list, define appropriate sponsorship levels, and reach out to more sponsors than necessary. The main distinctions lie in the time commitment and level of personal interaction required. It is advisable to initiate the sponsorship recruitment process weeks or even months before sending out invitations (especially when dealing with larger sums of money). Adequate lead-time is crucial as businesses usually take longer to make sponsorship decisions compared to individuals; moreover, the more funding required, the longer it may take to secure enough sponsors.
One distinction of sponsorships is the possibility of accepting in-kind donations, such as catering, printing, airtime, or other goods and services, in exchange for sponsorship acknowledgment. It is important to exercise caution in these situations to ensure that the contributions are genuinely needed.
The Approach
It is recommended to design a single-page document that promotes the event and details the expenses and advantages of sponsorship at different tiers. This document can be sent via email, traditional mail, or presented in person.
One approach that appears to be effective for sponsorships up to around $5000 is outlined in the following timeline:
Send an email requesting sponsorship from prospects with whom you have a positive relationship and who are likely to agree.
Wait for 2 to 4 days before sending a follow-up email or making a phone call
Schedule meetings to finalize the agreement, as needed.
If the sponsorship amount exceeds $5000, anticipate the need for frequent meetings.
Follow-up and Thank You
It is recommended to write a personalized thank you note by hand following each meeting or important milestone, such as after a sponsorship pitch meeting or upon receiving a sponsorship check.
NOTE
Getting other businesses on board as sponsors is an excellent strategy to establish long-lasting partnerships with them.
Sponsorship management offers numerous chances for developing relationships.
Engaging sponsors and utilizing their sponsorship funds can amplify the impact of your investment by a factor of five to ten or even higher.
When you're in charge of an event, you have the opportunity to offer a complimentary sponsorship spot as a means of building relationships.
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