Whether your nonprofit wants to obtain more funding to address overhead costs, increase its budget for a fundraising event, or simply deliver higher-quality programs to beneficiaries, sponsorships can bring the support you need.
Although most nonprofits look toward large corporations for this type of partnership, small businesses are also worthwhile partners to pursue. However, working with them may require a slightly different approach. So, let’s explore three tips for acquiring small business sponsors for your nonprofit.
Why Partner with Small Businesses?
You might be wondering: Why should I put in the effort to work with small businesses? After all, large businesses are generally more financially stable and have more resources to spare for our cause.
While those thoughts are valid, sponsorships from small businesses come with unique perks that you may not be able to access through partnerships with large companies. For example, through small business sponsorships, you can:
- Support the local community. Local businesses deserve support just as much as your nonprofit, and a sponsorship is the perfect, mutually beneficial way for both organizations to get the support they need.
- Access more flexible partnerships. Most larger businesses have established sponsorship rules and regulations, which can make their sponsorship opportunities more difficult to customize to your nonprofit’s needs. Smaller businesses may not have rigid policies, leading to more flexibility in their sponsorships.
- Leverage targeted, localized marketing. According to MassageBook, small businesses are usually well aware of their niches and target audiences. Although working with a smaller company might not get you access to a large audience, it’ll unlock an audience that’s more likely to mobilize on your behalf.
- Build trust for larger future sponsorships. Corporations and larger companies may want to see a history of successful sponsorships before they work with your nonprofit. Having a successful partnership with a small business may provide the stepping stone you need to obtain larger future sponsorships.
Unless you’re specifically looking for an extremely large sum of money from your sponsorship, small businesses are just as qualified to work with your nonprofit. Plus, a small business owner will probably be excited to work with your charitable organization to support the community, making them more likely to agree to a sponsorship, whether it’s for an event, program, or something else!
1. Strategically Pinpoint Potential Sponsors.
Although it’s tempting to cast a wide net when sending out sponsorship proposals, it’s more beneficial to target your solicitations to the small businesses most likely to agree to such a partnership. Not only does it save time for your sponsorships officer, but it also increases your chances of hearing a “yes!” in response to your proposal.
When researching potential sponsors, look for small businesses that:
- Share similar values to your nonprofit. Core business values that indicate a willingness to work with nonprofits include transparency, responsibility, kindness, compassion, and community.
- Have a strong connection to the community. A business that already participates in community events is more likely to want to support other organizations in its community.
- Have a history of philanthropy. Aside from a history of charitable involvement, having dedicated corporate giving programs is another great indicator of a willingness to participate in philanthropy.
You can start your search with businesses that operate in a similar vertical to your nonprofit. For example, if your mission is to address food insecurity in the community, target businesses like grocery stores, beverage companies, and restaurants. Since they work in a similar industry, they’re more likely to be interested in sponsoring your organization.
Once you’ve gotten more familiar with soliciting sponsorships and working with small businesses, you can branch out to companies in industries that are tangential to your work. For example, suppose your nonprofit is hosting a bowling tournament and needs to supply food and drinks to competitors and spectators. In that case, you can contact catering companies and local breweries for help, regardless of whether your organization’s mission relates to food.
2. Understand the Business’s Goals.
The best partnerships are not solely beneficial for the nonprofit or the business—ideally, they will serve both organizations’ interests. To create compelling sponsorship proposals that excite small businesses about working with your nonprofit, you must understand what each business stands to gain from your partnership.
Here are a few common business goals and how sponsorships can help companies work toward them:
- Increase revenue
- Boost brand visibility
- Grow customer base
- Enhance customer loyalty
- Strengthen employee engagement
- Improve brand reputation
- Differentiate themselves from competitors
For example, let’s say your health and wellness nonprofit wants to partner with a massage business for a sponsorship. Through your research, you might discover that they’ve recently created a new referral program and are offering a discount for first-time customers, suggesting that they’re looking to grow their customer base.
Since you have a good idea of their current priorities, you can help them achieve their goals by offering to include their logo and a link to their website on your nonprofit’s sponsorship page. You might also create a social media post on each of your platforms shouting out the business by name, thanking them for their support, and recommending your supporters check out their services.
3. Offer Creative Ways to Sponsor Your Nonprofit.
When most nonprofits think of sponsorships, they think of large monetary donations. However, a small business might not have a significant amount of funds to give. Instead, look for creative avenues for the business to support your organization without making a large financial investment.
Here are a few examples:
- Auction items: To procure more items for upcoming auctions, partner with small businesses and ask for in-kind gifts of auction items. For example, a local plant store may provide a gardening kit to auction off.
- Services for beneficiaries: Leverage business sponsorships to provide services for your beneficiaries directly. For example, an animal shelter might enlist a veterinarian to provide vaccines and other care to new animals.
- Educational workshops: As Studio Pro mentions in their marketing guide, sponsorships allow businesses to foster relationships. Ask your sponsor to speak during an educational workshop or webinar about the importance of your cause to lend your mission more authority and give them the chance to connect with more potential customers.
For more creative projects, handle sponsorship proposals on a case-by-case basis. Tailor the benefits you’ll offer to the small business based on their investment in your partnership, not the amount of money they provide to your cause.
At the end of the day, a sponsorship must be mutually beneficial. In your proposals and communications with the small businesses you’d like to work with, highlight exactly what makes the partnership worthwhile for them. Whether they’re looking for better brand visibility or a boost to their reputation, work with them to develop a solution that fits their needs to secure their support.
