National Council of Nonprofit Associations

Corporate sponsorship is a terrific way for a business to support a nonprofit's mission and for a nonprofit to realize revenue to help move that mission forward. By making a financial contribution that is visible, the business gains public recognition for its support. Fundamentally nonprofits need to recognize that in order to attract a corporate sponsor, the nonprofit needs to offer the business an attractive return for its investment, such as recognition for the corporation's support in a very public way. By partnering with a nonprofit, the business can elevate its exposure to and credibility with the nonprofit's stakeholders. Businesses can become known for being "good corporate citizens" by partnering with a nonprofit.

However, nonprofits that engage in a partnership -- whether with a for-profit or another nonprofit -- must be careful because their own image can be tarnished by relationships with their partners. Is there alignment between mission and the business partner's products or persona? It probably doesn't make sense for a nonprofit that fights childhood obesity to partner with a sugary snack manufacturer as a corporate sponsor. Nonprofits need to be careful to stay mission-driven and not partner just because of a promised contribution, without thinking about the intangibles of the partnership relationship. While a nonprofit can't predict whether a corporate partner will become a liability down the road, there is much that a prudent nonprofit can do when exploring corporate partnerships to boost the probability of success in the relationship.

This toolkit offers resources to guide a charity's decision to enter into a corporate sponsorship, to structure the relationship, and engage in proven practices for making the sponsorship a success. All corporate sponsorships require finding a balance between protecting the charitable organization's interests and mission, and providing enough value or "return on investment" for the business, so that the relationship is a positive one for both parties.

What are the "best practices" a charitable organization should aspire to when entering into and sustaining successful corporate sponsorship relationships?

• What is a "corporate sponsorship?" A corporate sponsorship is the financial payment by a business to a nonprofit to further the nonprofit’s mission, with an acknowledgement that the business has supported the nonprofit's activities, programs, or special event.
  While the acknowledgement may be prominent, it is distinct from an advertisement.
  The latter will result in unrelated business income for the nonprofit.
• What should a nonprofit think about when deciding how to approach potential corporate sponsors? Here is a term sheet to help your nonprofit develop policy guidelines on corporate sponsorships.
• What are the ways that a nonprofit can acknowledge ("thank") a corporate sponsor without the acknowledgment turning into advertising for the business? 
• How can a nonprofit find an appropriate corporate sponsor? During Betatesting, nonprofits can sign up for a free trial of "SponsorPark," a service that matches nonprofits with corporations that are seeking nonprofits to sponsor.
• Gail Bower, a consultant on this topic, has prepared guidance on best practices in corporate sponsorships.
• What assets does your nonprofit have that might interest a corporate sponsor? Read Gail Bower's checklist for success with corporate sponsorships to help you identify ways that your nonprofit can interest a business in gaining exposure with your stakeholders.
• Learn about the tax treatment of income received from corporate sponsorships.
• Additional resources on Corporate Sponsorships:  IEG is a private consulting group that is an authority on corporate sponsorships. The IEG website offers many resources, examples of corporate sponsorships and ideas for potential sponsorship relationships.
• Consultant and author Gail Bower has written a helpful booklet, How to Jump-start Your Sponsorship Strategy in Tough Times.
• Download a webinar with Gail Bower, "Six Steps to Corporate Sponsorship Success" (October 15, 2009.)