A sponsorship is when a firm or organization decides to give money or a few of the company’s resources to a non-profit group or organization’s event or program. The arrangement is done to get some promotional benefits for the company. For example, the company tries to get its name or logo mentioned in the banner, t-shirts, posters, brochures, and other marketing communication material of the non-profit’s event or program.
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The main aim of sponsorship is to expand the reach of the audience and build a good name for extending their support to a noble cause. Non-profits are usually purpose-based organizations and for-profit companies become sponsors to get a competitive edge and make themselves socially responsible. So, basically, sponsorship is a win-win situation for both the non-profit and for-profit companies because they get what they want in exchange for their resources.
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There are different types of sponsorships such as financial or cash sponsorship, in-kind sponsorship, media partnership, and promotional partnership. Financial sponsorship is where the company gives cash for getting publicity at the event. In-kind sponsorship is where goods or services are exchanged such as a venue given to the non-profit group to conduct the event, food is served for free to become a food partner, etc.
A media partnership is where a media organization decides to give the pre-event and post-event coverage in exchange for a title as a media sponsor that can be exclusive or non-exclusive depending on the deal. The promotional partnership is where an individual or group does the publicity of the event on their social media channels in exchange for publicity for the event.
In order to get good sponsors for the event, a non-profit can have its own team of experts or hire an agency that can get the sponsors on board in exchange for cash or commission in the sponsorship package. Sponsors are required to provide an opportunity to every company to showcase their products or services in front of visitors or audiences. For huge events like exhibitions, there is a need for a huge number of sponsor companies to keep the event going and meet its huge needs of managing the audience, providing the food or necessary stuff while they are at the venue, having volunteers to keep a check at the smooth functioning of the event and even getting some speakers on-board to provide insights and add value to the visitors’ intellectual needs.
Sponsorship cannot be forced or demanded from companies but they need to be convinced that investing their money or resources will help them get something in return that will increase their profits or improve their credibility and visibility as an organization. No wonder the TATA group has always been a sponsor for Tata Mumbai Marathon, which is ranked among the top 10 marathons on the globe. Due to the Tata Mumbai Marathon that is scheduled every year, India has been acknowledged on the world map of distance running. TCS – Tata Consultancy Services has in fact retained the title sponsorship rights for the New York marathon till 2029. Being a sponsor since 2014, the TCS has realized that the US is its biggest market that has given more than 50% of its $22 billion revenues.
