Fundraising and sponsorship
Appointing a sponsorship, fundraising and grants coordinator
In order to be successful in raising funds for your club, it is useful to appoint a dedicated person or establish a committee.
The role of such person or committee would be to:
- Determine what purpose the funds are being raised for.
- Develop a fundraising plan.
- Identify potential source of funds e.g. sponsorship, grants etc.
- Write the grant application or sponsorship proposal.
- Ensure the acquired funds are being used for the designated purpose.
- Maintain relationships with donors, grant agencies and sponsors.
We have provided a sample sponsorship, fundraising and grants coordinator job description in the resources section of Club Kit.
Go to top
What is sponsorship?
Sponsorship is a link between a club and a sponsor where this relationship is mutually beneficial for the marketing needs of both parties. From the corporate point of view, sponsorship is just one small section that comprises part of their overall marketing budget.
Sponsorship is when a business provides funds, resources or services to a club, in return for some form of rights and/or associations with the club that may be used to help the business commercially. This could be in the form of a logo on a football, signs at an oval or free advertising in the newsletter.
Sponsorship is not just about money. A good sponsor can add considerable value by, for example, becoming the club’s primary advertiser and creating great brand exposure. In the longer term, this benefit may be of more value than the direct sponsorship income initially received.
It can be useful to think of sponsorship in this way: “Don’t ask what your sponsor can do for you; ask what you can do for your sponsor.”
Remember that donations are different to sponsorships. Businesses or individuals do not expect any commercial advantage in return for their donation.
Types of sponsorship
Marketing sponsorship is sponsorship that will have a direct and positive effect on the sponsor’s bottom line. Primarily, this type of sponsorship promotes products and services to very specific target markets, or niche markets.
Corporate sponsorship is the provision of cash or ‘contra’ by a company for an independent activity not directly related to the company’s normal business. Often companies sponsor in this manner to reinforce a positive public perception, to communicate to a defined target market or to build or maintain a desired image.
Philanthropic sponsorship is a donation or a gift with the sponsor wanting little or no return.
Who to approach
- Members, family and friends. Like all forms of fundraising, it is easier to start locally with your members, friends and relatives. If people know your club and understand what you do, then they are more likely to listen and give the support required. There may even be someone within the club who has a small business and is willing to sponsor the club.
- Local businesses and suppliers. Check with your suppliers of sports clothing, food and equipment. Research local businesses and target those who could benefit from a partnership with your club.
- Larger organisations. Consider approaching larger organisations. They may have more resources but keep in mind they may not have the interest or commitment that you want. Your club may be too small to attract enough value in their sponsorship dollar. Unless you have a contact, it may be more difficult to get to speak to them as they are generally inundated with requests for sponsorship.
Preparation
Before embarking on a sponsorship drive an organisation should identify:
- What type of support they are seeking e.g. cash or in kind.
- The types of businesses that could provide appropriate support.
- What benefits could be offered to sponsors.
Whether members of the organisation have links with any potential sponsors.
Go to top
Sponsorship proposals
At some stage in your club’s life, you will probably need to prepare a sponsorship proposal. The sponsorship proposal is an offer to do business. It is extremely important that it is a well-presented and concise business document and that contains enough information for a company to gain a thorough understanding of what they are being offered.
Because you aren’t the only club out there looking for sponsors, you should make sure your sponsorship proposal stands out from the rest. Tailor the proposal to individual needs of the company being approached. Do your homework. Find out as much as you can about the business you are approaching, e.g. its desired image, products and services, its corporate objectives.
Writing proposals, contacting companies and making your approach can be time consuming work. It is important, early on, to decide how much tailoring of the proposal will take place to meet the specific requirements of potential sponsors. Be aware of how much time is required per proposal.
Below are examples of typical contents for sponsorship proposals:
- Cover letter - address the proposal to the most appropriate person in the sponsor’s organisation.
- Overview - provide an outline of the project and/or the organisation seeking support. What are you asking to be sponsored (event, organisation description)? What and where does it happen? The use of relevant statistical information in sponsorship proposals can help the assessor get a picture of your organisation or event and identify cost benefits. Market demographics are important to define your membership, public and audience. Identify niche markets your organisation can deliver to. It then becomes easy to match a product or company to a particular audience.
- Objectives - outline the objectives of the project and/or the organisation seeking support.
- The investment - outline the funding amount or in-kind support being sought (what is it going to cost the sponsor) and the period of time for the agreement.
- Sponsorship benefits - this is a critical component. Look to include benefits such as naming rights, promotion strategies, signage, media, brand awareness opportunities, articles in newsletters or websites etc. For 99% of companies, media exposure is an important factor of sponsorship. Wherever possible provide some or all of the following elements - radio, TV, print and community access - in a sponsorship package.
- Target market - outline who the project is aimed at or provide a membership profile. Identify how it matches the target market of the proposed sponsor or how it could increase their market share. By taking the time to tailor the proposal to a specific sponsor, a successful outcome is more likely.
- Exclusivity - detail other sponsors and/or supporters of the project or organisation. Make sure that sponsors are not in competition with each other.
- Servicing the sponsors’ needs - outline how you will cater for the sponsor’s needs. Identify a designated employee or volunteer to be to point of contact for the sponsor.
- Evaluation strategy - outline how you plan to evaluate and measure the success of the agreement.
- Conclusion - summarise the proposal, identify a follow-up procedure and supply contact details.
Other issues to consider
The following tips will also help improve your proposal:
- Provide a clear and attractive cover page outlining the proposed sponsor and your club.
- Provide adequate space in the content so that it can be read easily i.e. don’t squash all your information onto one page (unless it states to do so).
- Provide a contents page for larger proposals.
- Examine additional information and determine whether it is best placed within the body of the document or as an attachment.
- Number the pages.
- For projects that have been undertaken previously, provide examples of programs, newsletters etc, which show how previous sponsors have been acknowledged.
Finally, don’t do it all at the last minute. Give your club and your potential sponsor plenty of time. The assessment, negotiation and planning involved to successfully manage a sponsorship can take a while, so allowing adequate time prior to when you actually need it is a good idea.
We’ve provided a sample sponsorship proposal and a sample sponsorship agreement in the resources section of Club Kit.
Go to top
What is fundraising?
Fundraising is the systematic process that your club goes through to secure additional funds to its operational budget.
Fundraising shouldn’t be considered for raising money to pay for the everyday operational costs of your club, rather it should be used to fund special activities such as new buildings, special events or overseas team trips and new programmes or projects.
Raffles, stalls and special functions such as dinners, lunches and dances can very successful ways for groups to raise money particularly if they are for specific projects (like sending the under 16’s soccer team to Australia to compete in a competition). However, this sort of fundraising can be labour intensive, and there is a lot of competition from a huge number of community groups all making calls on people’s generosity.
Go to top
Establish a fundraising committee
Form a fundraising committee for the club if there isn’t one already. Fundraising isn’t easy and it’s not fair to place all that work on just one person’s shoulders. Allocate duties within the committee and agree to meet at regular intervals to decide on activities and monitor progress.
10 fundraising principles to remember:
- The 80/20 rule applies to fundraising - 80% of your income usually comes from 20% of your supporters. Identify who they are and develop a long-term relationship with them.
- People give to people. Make sure that your potential donors know the faces behind the names, understand your cause, and can relate to the purpose of your project. Can you identify some patrons who would be prepared to become the public face of your project? Patrons may be high profile and respected sports people, business people or other public figures in your community.
- Always say ‘thank you’. Acknowledge donors in numerous ways - honour boards, annual reports, certificates of appreciation, phone calls and letters from your members.
- Always let people know how much you would like them to give. It makes them feel comfortable and makes you look competent.
- Explain what the donor will receive for his or her donation. (e.g. a tax deduction, and knowing that they are helping the local community).
- Until you try something, you won’t know whether it will work. Be prepared to test an idea on a small scale and assess if it works before you go to a lot of expense.
- Try something different. All products go through cycles. Fundraising activities need modifying from time to time. Look at how you can make some simple changes. Your idea might be good, but might need refreshing.
- Do not confuse the donor - keep everything simple, clear and easy to understand.
- Fundraising is not easy. Gather some committed volunteers who will support the project through to the end.
- Always tell the truth. Don’t be tempted to make your case stronger than it is.
For clubs funds are usually raised through the club members and their family and friends. There are many novel ways to raise funds beyond a club raffle and selling chocolates. Think outside the square and always review your fundraising activities to ensure you are getting the best value for the amount of time and effort the club is putting in.
The NSW Department for Sport and Recreation has some excellent ideas for club fundraising.
We have also provided some great fundraising ideas in the resources section of Club Kit.
Go to top
What are grants?
Grants are funds received from statutory, voluntary or philanthropic agencies that have often been established with the primary purpose of giving grants. This is to meet their own objectives and strategies, such as government policy, community development, or meeting the needs of the local community.
Grants are not the same as sponsorship or fundraising as there are usually a strict set of criteria that an organisation must meet in order to qualify for a grant. Therefore, it’s important to complete any application forms thoroughly and carefully and in as much detail as has been asked for.
Tips for successfully attracting grants
Clubs that are successful in attracting grants usually:
- Prepare a yearly calendar of closing dates for all funding sources.
- Request application forms well before the closing date.
- Prepare the application in advance.
- Pay careful attention to the details required and presentation of application.
- Clearly outline the goals and objectives of the project.
- Describe why the project is needed and support this with facts and figures.
- Detail the methods used to conduct the project.
- Indicate the expected outcomes of the project.
- Consult advisory officers.
- Submit applications before the closing date.
Sourcing grants
A number of different grant sources are relevant to sport and recreation organisations. The most common grant agencies include the Government, charitable trusts and foundations and businesses. "
- Government - for the most part, it is your local government (local and regional councils) that are most likely to be able to help you at club level. Contact your local regional sports trust or council to see what they have available.
- Charitable trusts and foundations - most charitable trusts and foundations provide financial assistance to those clubs that can offer the trust or foundation a tax deduction and which helps disadvantaged groups, such as sporting organisations for people with a disability. Checking a directory can determine whether there is a match between the interests of your club and the funding agency. Several grants directories are available in New Zealand.
- Corporate/businesses - some corporations like AMP and Telecom have established foundations that provide grants for particular causes. These foundations cannot be used to promote the business interests of the specific corporation, nor can they seek sponsorship benefits like signage and naming rights.
Preparing a grant application
To be successful, applications need to well-prepared and written clearly. Grant applications must usually demonstrate that the project in question is feasible and meets the appropriate policy goals or priorities of the particular grant agency.
Although specific criteria may vary with each grant scheme, most grant applications require similar types of information:
Go to top
- Contact information.
- Program/project description.
- Brief description of the organisation applying.
- Program/project budget.
- Amount of assistance requested.
- All other sources of funding for the project.
- How the applicant organisation meets the grant criteria.
- Guarantee that the program will proceed and monies received will be spent on the purpose for which the money was given.
- Copies of the latest annual report and a copy of the audited financial statements.
Resources and more information
SPARC’s Supporting Sport: Sponsorship takes an in-depth look at sponsorship as it relates to sport at a national level in New Zealand. This resource contains some useful advice about preparing sponsorship strategies, particularly for larger organisations.
CommunityNet Aotearoa is an internet resource for communities in New Zealand takes a comprehensive look at the different ways local community groups can seek sponsorship, fundraise and apply for grants.
Philanthropy New Zealand has information on grants available in New Zealand.
Funding Information Service has information on what grants are available as well as useful information on tools for applying.
The Department of Internal Affairs has a website dedicated to grants available through the Community Organisation Grants Scheme and the Lottery Grants Board.
The NSW Department for Sport and Recreation has some excellent resources on club sponsorship.
Other resources you can use for your club’s sponsorship, fundraising and grants include:
Go to top
