|
Sponsorship or Stewardship?
There is a Difference
By Ron Haas
Will you sponsor me at five dollars per mile for Life Walk?"
"Would you underwrite a table at our fundraising banquet?"
"Will you purchase an advertisement in the book commemorating our tenth anniversary?"
"Would you sponsor a hole at our golf outing?"
Sponsorship is a favorite fundraising tool of many nonprofit organizations. Perhaps you use it with a measure of success.
 |

DONORS ARE
ATTRACTED TO YOUR
MINISTRY BECAUSE
THEY BELIEVE THAT
YOU ARE MAKING
A DIFFERENCE
IN THIS LIFE AND
FOR ETERNITY.
 |
|
 |
Advantages of sponsorship
Sponsorship is one way of involving new donors with your ministry. Those who participate in your Life Walk fundraiser reach out to their circle of friends for support. These donors may or may not have a connection with your mission but give on the basis of their friendship. It becomes a grassroots way of expanding your donor base. However, most gifts are small, one-time, and tied directly to their friend. If their friend quits walking, they quit giving.
Asking a business to underwrite a table at your fundraising banquet or a hole at your golf outing is a good way to involve a business that typically would not support your annual operating budget. From the business owner's perspective, these opportunities are viewed as a form of marketing paid from their advertising budget.
Limitations of sponsorship
There are serious drawbacks to relying on sponsorship as your primary fundraising strategy. Consider this example. A ministry decided to celebrate its anniversary by printing a memory book for those guests who attended their annual fundraising banquet. They set a "price list" of suggested donations for various sizes of ads and "sold" advertisements to their supporting businesses. The ministry director believed that this strategy would raise more money than simply asking donors for gifts. He was convinced that one particular business owner who had supported the ministry with a previous gift of $12,000 would "buy" an ad for $12,000, plus continue giving to the general fund. However, the director was disappointed when the business owner "bought" the ad but did not increase his overall support.
What went wrong? When you ask a business to "buy" advertisements, you frame your request in the context of how it will benefit the business. They receive something in return for their sponsorship. Maybe it's goodwill or a small amount of advertising. Think about this from the business owner's perspective. Investing $12,000 to reach five hundred people at a banquet is not a very cost-effective advertising strategy. That calculates to $24 per advertising impression, which simply doesn't make good business sense, especially if most of the banquet guests aren't potential customers. It's clearly a gift, not a legitimate advertising expense.
Ministries are lured into using sponsorship as their main fundraising strategy because secular nonprofits use it with great success. Zoos, museums, hospitals, and other community-focused organizations appeal to businesses, corporations, and individuals based, in part, on the recognition the donors will receive. Organizations "sell" the prestige of being associated with other prominent community patrons listed on the library wall, but many of these donors don't cross over into stewardship.
Sponsorship from businesses or individuals is a glass ceiling for ministriesespecially those focused on reaching people with the Gospel. Businesses concerned about building community goodwill can accomplish more for themselves by supporting secular organizations. Individuals looking for donor perks will choose the symphony's Maestro's Circle over helping you. Don't worry about trying to compete in the world of sponsorship, you have something much betterit's called stewardship.
So you're asking yourself: What about the success of relief agencies who promote sponsoring a child in a Third World country? This type of sponsorship is really an appeal to sacrificial giving. The donor is not buying something like an ad, table, or miles walked but rather giving to meet a child's need. The donor receives no benefit in return, only the satisfaction that he is making a difference.
Sponsorship has a role in your fundraising efforts, but don't get trapped in the sponsorship mindset. When you evaluate your methods for inviting people to partner with you, how much should be sponsorship, and how much should be stewardship? A healthy goal would be to have 90 percent of your fundraising strategies focused on stewardship and 10 percent on sponsorship.
Sponsors give from the head; stewards give from the heart. Some individuals and businesses will stay at the sponsorship level of involvement. But many in your donor base have the potential to grow from a limited level of sponsorship to greater involvement through stewardship. The key lies in how you tell your story. Are you selling something or changing lives?
| Ron Haas is a consultant with the Timothy Group. He has served as a pastor, a vice president for institutional advancement, and a grant-making professional for a Christian foundation. He can be reached at timgroup@iserv.net. |
|