As sponsors, how do we find our unique point of difference and how do we choose the right organisation to partner with?
Sponsors need to be selective in their sponsorship decision-making. While there's plenty of reason to be sponsoring the non-for-profit sector, we have a responsibility to ensure we are dispersing funds across a range of community groups, clubs and organisations.
Right now, there is one charity for every 422 Australians. Yes, you read that correctly. The $107 billion sector is expanding at an alarming rate. Analysis from JBWere has found in the past 20 years almost 10 new charities were established every business day with 58,894 charities now operating across Australia.
As it turns out, government is increasingly a source of funds. What's also happening is charities are being duplicated. When there's a multiplicity of charities offering the same services, it ultimately undermines the outcomes for those in need.
As sponsors then, how do we find our unique point of difference and how do we choose the right organisation to partner with?
The answer lies in how we approach our corporate social responsibility, what it means to us and what partnership should we strike to meet our business objectives.
As sponsors, we need to organise our business priorities so we are reaching and impacting the largest number of people through the most efficient and effective channel. This may call for a more consolidated approach encouraging organisations to work together towards common goals all the while collaborating the efforts.
The report found income in the non-profit charity sector, which includes some sporting groups, has risen 8.4 per cent annually since 1996 to $107 billion.
More than any other source, government is increasingly providing income for charities, jumping from 30 per cent of income in 1996 to 40 per cent in 2014 to a total of $40 billion.
What this means is that sponsorship dollars don't necessarily all have to go to the non-for-profit sector. Choose wisely and decide to partner with a rights-holder that meets your marketing objectives square on. While it might be through supporting a non-for-profit, there's nothing wrong with choosing to partner with a for-profit organisation – especially given the glut of charities in Australia already receiving funding.
Alternatively, look for other ways to provide support to the non-for-profit sector and benefit from the association. The volunteer workforce is both ageing and shrinking in size. What this means is there's a golden opportunity for sponsors to provide meaningful benefit to both the organisation they're sponsoring and to the enjoyment factor of their target market by providing a service that's of value.
Has this helped you process your sponsorships opportunities differently? Want more assistance in managing your sponsorship portfolio? Like us at www.facebook.com/eventsponsorsAU or register free at www.eventsponsors.com.au for more on sponsorship best practise.
