How to Create a Sponsorship Package

I've been on the other side of the sponsorship table. At Food for the Hungry, we sponsored a series of five homeschool conventions to find new child sponsors. The first convention was the largest, and our plan wasn't working. Attendees were spread across workshops all day, so there were few moments when most of the audience was together, and our numbers were far below what we needed.

We went to the head of the convention during the event and told him plainly that it wasn't working. We asked for some time in the main session for a child sponsorship appeal. He was reluctant at first, so we showed him exactly what our artist would sing. He agreed, the main-session appeal worked, and attendees told him they enjoyed the music.

That experience taught me what sponsors are really buying: a result. A good sponsorship package makes clear what a company will get, and a good partner helps them get it. Here's how to build one.

What a sponsorship package is

A sponsorship package is a business proposal. A donation request asks someone to support your mission. A sponsorship package offers a company something of value in return: visibility with your audience, a way to engage their employees, and a chance to be associated with work their customers care about.

That changes how you write it. Lead with what the sponsor gets and who they'll reach, not only with what you need.

What to include in a sponsorship package

1. A short cover letter. Two or three paragraphs, addressed to a real person, explaining why this sponsorship fits this company.
2. Who you are and who you reach. Your mission in a sentence or two, then your audience: event attendance, email subscribers, social followers, and who those people are (age, location, interests).
3. The event or program. What it is, when and where it happens, and what the sponsorship makes possible.
4. Sponsorship levels and benefits. A simple table with three to five levels, what each costs and what each includes.
5. Proof. Photos from past events, a quote from a past sponsor and results you can point to.
6. What you'll report back. Tell sponsors up front how you'll show them what they got.
7. Next steps. A deadline to commit, the person to contact and how to say yes.

Keep it to a few pages. A sponsor should be able to understand the opportunity in two minutes.

Know your numbers first

Sponsors buy audiences. Before you set prices, gather what you can honestly claim:

• Expected attendance, and attendance at past events
• Email list size and typical open rate
• Social media followers on each platform
• Website visitors per month
• Who your audience is: where they live, their age range, what they care about

If your numbers are small, that's fine. A local business may value 300 engaged neighbors more than a national brand values 30,000 strangers. Be accurate, and never inflate.

How to set sponsorship levels and prices

Start with what the event costs to put on. Many organizations set the top level so one presenting sponsor covers a large share of the event's costs, then build down from there.

Then think about the value of what you're offering. What would it cost the company to reach the same audience with advertising? What's the value of a booth, a speaking moment or tickets for their employees?

A few guidelines:

• Use three to five levels. Fewer feels limiting, and more gets confusing.
• Make the top level exclusive. There's only one presenting sponsor, and that scarcity is part of the value.
• Make each level clearly better than the one below. Each step up should add something a company would notice.
• Leave room to customize. Some of your best sponsorships will be built around what one company wants.
• Count in-kind sponsors. Food, printing, venue or media can be worth as much as cash.

Here's an example for a fictional community 5K:

| Level | Price | Benefits | | --- | --- | --- | | Presenting sponsor (one) | $10,000 | Name in the event title, logo on the race shirt front, speaking time at the start, 20 race entries, booth, social and email recognition | | Gold | $5,000 | Large logo on the race shirt back, booth, 10 race entries, social and email recognition | | Silver | $2,500 | Logo on the race shirt back, 6 race entries, social recognition | | Bronze | $1,000 | Name on the race shirt back, 4 race entries, listing on the event page | | Community partner | $500 | Name on the event page and in the program |

Your prices will depend on your audience and your market. Use this as a structure, not a price list.

A sponsorship package template

[Event or program name] Sponsorship Opportunities

About [Organization]: [One or two sentences on your mission.] Last year, [number] people [took part / attended / were served].

The event: [What it is], [date], [location]. We expect [number] attendees, and we'll promote it to [number] email subscribers and [number] social followers.

Who you'll reach: [A short description of your audience.]

Sponsorship levels: [Your table of levels, prices and benefits.]

What past sponsors say: [One short quote.]

What we'll send you afterward: Photos of your recognition, attendance and reach numbers, and a short report on what the event accomplished.

To become a sponsor: Contact [name] at [email] or [phone] by [date].

Know where sponsorship ends and advertising begins

In the U.S., the IRS treats a qualified sponsorship payment differently from advertising. Recognizing a sponsor with its name, logo, a neutral slogan, its location and website, or a neutral list of its products is generally an acknowledgment. Language that compares or praises the sponsor's products, includes prices or savings, or urges people to buy them is generally advertising, and advertising income can be taxable. If a sponsor wants promotional copy, talk with your accountant first.

Decide what you won't accept

Know your values before a company calls. At World Concern, which was part of CRISTA, we were once approached by someone who wanted to name a beer after our work and give us the proceeds. It could have raised money, but promoting alcohol didn't fit who CRISTA was, so we said no. A simple gift acceptance policy makes these decisions easier and keeps them from being personal.

After you sign: deliver and report

The fastest way to lose a sponsor is to forget them after the check clears. Deliver every benefit you promised, take photos, and send a short report after the event with what they received and what their support made possible. That report is where next year's renewal starts. Here's how to renew and upgrade sponsorships and how to give sponsors more exposure.

Next steps

• Find the right companies and make the approach: how to get corporate sponsors
• Get ready for the first call: phone scripts for corporate sponsorships and your sponsor elevator pitch
• Explain the value: what companies gain from sponsoring a nonprofit
• Bring in your board: the role of board members in securing sponsorships

Sources

• IRS: Advertising or qualified sponsorship payments?