TO BE TIED OR NOT TO BE TIED, THAT IS THE QUESTION
We all know cash is like oxygen for any company or non-profit, but some forms of cash certainly make you breathe easier. Corporate partners can provide both ‘tied’ cash, for specific vital programs and events, but also significant ‘untied cash’. How would you feel if a large chunk of your daily operating costs – salaries, rent, utilities, fundraising expenses and so on – were covered by a corporate partner?
How relaxed would you feel if you had cash in reserve, for a ‘rainy day’ or if an income stream dries up or, dare we mention it, a global pandemic or recession? Research suggests that the majority of non-profits have less than 6 months cash in reserve for lean times.
In my experience of working for a global non-profit, I’ve found that so many income streams provide ‘tied’ funds, that is, the donor requires the money to be spent on something specific. Government and philanthropic grants, bequests, major gifts, crowdfunding are often tied. So, I was very excited to learn that corporate partners can provide both tied, as well as untied cash. Because after all, we can’t survive without both.
Sponsorship
Sponsorship is tied funding, because the money goes to something specific, whether that be an event, program, research project, campaign or similar. The company provides cash to ‘sponsor’ something.
I’ve realised that just because an event or program needs funding, that doesn’t necessarily make it ‘sponsorable’. Look at it from the corporate perspective. They are going to ‘sponsor’ something that delivers a return to them. That return could be in reaching new customers, or demonstrating /sampling their product, positioning themselves in a particular way or building their brand if they’re new. Companies don’t ‘sponsor’ something just because it feels good. That’s called philanthropy.
So, take a fresh look at your programs and events. How many are actually sponsorable? How many have specific, tangible and measurable benefits to offer?
Perhaps you DO have a few things that are truly sponsorable. Once you have sponsors for them, how else can you engage with the corporate sector?
Partnership
A corporate partnership, on the other hand, can provide untied funding. Because corporates understand the need for infrastructure and administration, they’re less sensitive if their money is used this way, If they still get a return. The most valuable thing a non-profit has, and can offer a company, is the loan of its brand. And yet, so often the brand is given away for a song, because non-profits don’t understand how precious it is.
BePartnerReady.com® program helps non-profits to place a value on their assets so they can be packaged up as part of a sponsorship. It also helps you to place a value on your brand, because sometimes, this is all that a company or brand wants. And it should never be given for a song, because it’s taken you a lot of BS&T [1]to gain the goodwill and trust you have.
Brand aligned partnerships – where the company or brand wants to benefit from your brand – can be risky if you don’t appreciate the value of your brand. A multi-layered partnership that involves brand, staff engagement, sponsorship, GIK, expertise and CRM (Cause Related Marketing) is gold, because the partner embeds your organisation across many touchpoints. These can be challenging to negotiate but can last for many years.
Also, when the general public donates to a cause, they expect that money to be used to make a difference, so if your operating/administration costs are covered by corporates, you can say, hand on heart, that “all donations” make a social impact.
If you’d like to know about the other non-cash related benefits of a corporate partner download our free infographic here
Georgia McIntosh
[1] Blood Sweat & Tears
