How to Write Sponsorship Letters and the Importance of Sponsorship for your organization

The Importance of Sponsorship for Your Non-Profit Organization.

Donors and sponsors are the backbone of many nonprofit organizations. Nonprofits need to have multiple streams of income, not only to sustain their mission and goals but to not be solely dependent on private giving alone.

Corporate sponsorship can be a huge part of your organization's success, it allows your organization to access much-needed funds to support your events and activities and provide vital support to your mission. It is also a great opportunity to tap into a sponsor’s audience of potential givers, giving you more options for fundraising success.  

Sponsors are companies usually local to you, that give their time, resources, and money to support your organization. They make generous donations or provide corporate gifts in exchange for visibility and recognition at your event. They can also provide in-kind donations, such as donated goods or services, which can help with the overall cost of running your fundraising event, project, or activity.

An effective way to secure sponsorship is through well-crafted sponsorship letters. A sponsorship letter is a formal request for support outlining your organization's mission, activities, and the specific events or projects you are seeking sponsorship for. Sponsorship letters are tailored to the potential sponsor and explain the benefits of supporting your organization.

What are the benefits of fundraising or event sponsorship?

A sponsorship is a mutually beneficial partnership where the non-profit organization receives financial support and the sponsor organization has the opportunity to gain an incentive or recognition. Corporate sponsorship is part of managing a well-rounded fundraising plan that helps to accomplish more for your cause with financial help, auction items, or in-kind donation support from a business or corporation.

Sponsorship can provide a huge chunk of funds for fundraising events such as auctions and galas and is a game-changing opportunity for non-profit organizations looking to make a meaningful impact in their communities.

Not only does sponsorship provide a valuable source of funding, but it can also lead to new partnerships and connections that can further support the organization's mission as they are able to reach more donors with a sponsor on their side. A significant benefit of sponsorship, of course, is the financial support it provides. Non-profit organizations often rely on donations and grants to fund their programs and initiatives, but sponsorship can offer a reliable and consistent source of income. This can give organizations a chance to focus on their mission and keep hosting valuable fundraising events.

Fundraising sponsorship also provides an opportunity to build meaningful partnerships with businesses and individuals who share the organization's values and mission. Sponsors can offer expertise, resources, and connections that benefit the organization beyond financial gain, in return, the non-profit organization can offer visibility and exposure to its sponsors, helping to build their brand and reputation in the community.

Sponsorship also provides an excellent opportunity for non-profits to engage with their supporters and donors. By hosting events or offering exclusive benefits to sponsors, organizations can strengthen relationships and build a sense of community around their cause leading to increased loyalty and support from both sponsors and individual donors.

How do you ask for sponsorship?

At first, especially if you’re just starting out, asking for sponsorship can seem a little daunting. Still, with some careful planning and preparation, you can approach potential sponsors with confidence and make a compelling case for why they should support your fundraising event.

Asking for sponsorship is about making a good impression, so first of all, it's important to research potential sponsors and identify the businesses that align with your organization's values and mission. Look for businesses or individuals that have a history of supporting similar causes or events, and consider reaching out to your existing network for recommendations. Think about who the person you’re asking for money from really is, what demographic information is important to know? What perks do they care about or would be most useful to them, and how can your organization relate to them?

Once you've identified potential sponsors, you need to craft your sponsorship proposal. One effective way to do this is sponsorship letters - they are one of the most efficient ways to start a conversation between your organization and a potential sponsor and are a great first step to forming a mutually beneficial partnership.

A sponsorship letter is both informative and persuasive and should provide all the information a prospective sponsor needs to make an informed decision while also making the case for why they should support your cause. You should include:

•  a clear explanation of your event, including its purpose, goals, and expected outcomes, including the impact of that goal on your community
• an introduction to your organization and its mission
• and it should highlight the benefits of sponsoring your events, such as increased visibility, brand exposure, or simply the opportunity to support a worthy cause.

This clearly outlines why this sponsorship is essential for your organization and the fundraising event you’re trying to secure sponsorship for. When asking for sponsorship, it helps to be clear about your organization's needs so be specific about what you’d like them to sponsor, the timeframe, and any expectations of this type of sponsorship.

When reaching out to potential sponsors, it's important to personalize your message and demonstrate that you've done your homework. Use the information you've gathered in your research to tailor your pitch to each individual sponsor, highlighting how their support would specifically benefit your event.

Be prepared to follow up and maintain open lines of communication with potential sponsors. This may include sending thank-you notes or updates on the progress of your event, as well as being responsive to any questions or concerns they have.

Remember, asking for sponsorship is a two-way street. By offering meaningful benefits to sponsors and demonstrating the impact of their support, you can build long-lasting partnerships that benefit both your organization and the communities you serve.

What are sponsorship letters and what are they used for?

Sponsorship letters are essentially a donation request asking a business, individual, or larger corporation to sponsor an event or activity. The main purpose of a sponsorship letter is to convince the potential sponsor that your fundraising event or project deserves their support and how it will be beneficial for them to do so.

Sponsorship letters are a powerful tool for non-profit organizations seeking to secure support from sponsors for their fundraising events and activities. A sponsorship letter is a formal request for support from a company or individual, outlining the goals and objectives of the event and highlighting the benefits of sponsorship.

At its core, a sponsorship letter is about making a connection. It's a way for non-profit organizations to reach out to potential sponsors and build meaningful relationships that can support their mission and make a real impact in the community. Sponsors and non-profit organizations come together as mutually beneficial allies, the sponsors offer financial help or in-kind donations, resources, and advice and the organization offers exposure to the wider community while also establishing a relationship that shows potential customers they are associated with a good cause.

Before you start contacting random potential sponsors, start by reaching out to your existing network, such as current donors or volunteers, and ask for recommendations or introductions to companies or individuals who may be interested in supporting your event. You can also research companies that have a history of supporting similar causes or events, and reach out to them directly.

When making contact with potential sponsors, it's important to be respectful of their time and schedules - introduce yourself and your organization, and explain why you believe the sponsor would be a good fit for your event, remaining clear about what you are asking for, and provide a clear timeline for when you need a response.

Sponsorship letters are a valuable tool for non-profit organizations seeking support for their fundraising events. By highlighting the benefits of sponsorship and being professional and respectful in your outreach, they are a great way to build meaningful relationships with sponsors and secure the support you need.

Types of Sponsorship Letters

We now know Sponsorship letters are a crucial part of any non-profit's fundraising efforts to secure support, so let's discuss the various types of sponsorship letters that you can use to attract sponsors and donations.

The first type is a general sponsorship letter that seeks support from companies and individuals to make a one-time or ongoing donation to the non-profit. This type of letter is ideal for organizations that rely on the generosity of their sponsors to fund their programs and initiatives.

Next, we have the corporate sponsorship letter, which is typically sent to businesses and companies interested in sponsoring a particular event or program. These letters outline the benefits of sponsoring the event, such as increased brand visibility and exposure to potential customers. Corporate sponsorship letters should be personalized and tailored to the specific company, highlighting the unique ways in which their support will make a difference.

The third type of sponsorship letter is the in-kind donation request, which is a letter that asks for a specific type of donation, such as goods or services, instead of a monetary contribution. In-kind donations can be just as valuable as monetary contributions and can help non-profits save money and allocate resources more efficiently. Some examples of in-kind donation request letters include:

• Food Donation Request Letters

• Auction Item Sponsorship Letters

• Sports Equipment donation request letters

Another type of Sponsorship Letter to consider is a letter Requesting Volunteers. For non-profits,  schools, and even churches looking for ways to make a difference in the community, volunteer support can be just as essential and valuable as monetary contributions. When your most enthusiastic supporters lend their time and energy to your cause, you can accomplish important tasks and make a direct impact on the people you serve.

A sponsorship letter encouraging a company's employees to volunteer for your organization could be hugely beneficial, to both your organization and the volunteers. Some businesses even have programs that reward employees for their volunteer hours with a donation to the non-profit. By partnering with a company that values community service, you can create a win-win situation that benefits everyone involved.

No matter which type of sponsorship letter you choose to use, it is always important to make the most of your time and resources by creating a compelling and persuasive message. As a non-profit, you should clearly outline your mission and the impact of your work, and show potential sponsors and volunteers how their support can make a difference and don’t forget to also include clear and direct instructions for how sponsors and volunteers can contact the organization to give their support.

How to write a sponsorship letter

Securing sponsorship can be a fundamental aspect of ensuring the success of your fundraising events. Writing a sponsorship letter is a great way to reach out to potential sponsors and let them know about your upcoming event and how their support can make a difference. Let’s get started:

A key ingredient to a successful sponsorship letter is to make it personal and engaging and show potential sponsors how their support can make a difference while also placing a focus on the benefits of sponsorship, both for the sponsor and the organization.

1. The first step to writing a great sponsorship letter is to identify the companies or individuals you want to contact. Research companies that align with your organization's values and mission, and those that have a history of supporting similar events or causes. Once you have identified your potential sponsors, it's time to start crafting your letter.
2. Start your sponsorship letter by introducing your organization and the event you are seeking support for. Be clear about the purpose of your event and how it aligns with the values of the companies or individuals you are reaching out to and what you hope to achieve through the event, and how the funds raised will be used to support your programs and initiatives. Then explain the benefits of sponsoring your event. These benefits can include things like increased brand exposure, the opportunity to reach a new audience, and the chance to support a worthwhile cause. Make sure to tailor your benefits to the specific company or individual.
3. After explaining the benefits of sponsoring your event, make a clear ask for support. This could be in the form of a monetary donation, in-kind support, or even volunteer time. Be specific about what you are asking for and explain how the support will be used to make the event a success. Don't forget to mention any recognition or publicity opportunities for sponsors, such as logo placement on event materials or social media shoutouts.
4. In addition to making a clear ask, it's important to express gratitude for any support received. Thank your potential sponsors for taking the time to consider your organization and for their commitment to supporting important causes. Finally, provide contact information and encourage potential sponsors to reach out with any questions or to discuss sponsorship opportunities further.

When writing a sponsorship letter, it's important to keep in mind the perspective of the sponsor. Companies and individuals receive countless requests for support, so it's important to make your letter stand out. Tailor your letter to the specific company or individual, and focus on the benefits of sponsoring your event. Don't be afraid to get creative and highlight the unique aspects of your organization.

It’s also important to remain professional and respectful of the sponsor's time. Keep your letter concise and to the point, and make sure to proofread for spelling and grammar errors before sending. Follow up with potential sponsors in a timely and professional manner, and be prepared to answer any questions or concerns. Remember, sponsorship is a two-way street – be sure to emphasize the benefits of supporting your event, and be willing to listen to the sponsor's needs and priorities.

How to write sponsorship emails

If email is more your thing, these next tips will help ensure your message stands out in the crowded online landscape and gets that all-important click to open, Here are some email best practices to apply to your sponsorship letter email.

1. The first step to capturing your potential sponsor's attention in their inbox is to write a compelling subject line. It should be clear and concise, yet intriguing enough to entice them to open the message. Use this opportunity to make a strong first impression.
2. In the body of your email, keep your message brief and to the point. A benefit of using email is that you can use hyperlinks to direct your sponsor to more detailed information about your organization and event if needed. Adding visuals to your email can also be a powerful tool to showcase your organization and create a stronger connection with your potential sponsors.
3. Don't forget to include your contact information, making it easy for your recipient to respond to your request or get in touch with any questions or concerns. By providing them with a clear point of contact, you're showing that you're invested in building a meaningful relationship with your sponsor.
4. Finally, planning for follow-up contact can help increase your chance of securing a response. It's easy for emails to get lost in the shuffle, so waiting around 1 week to send a polite follow-up can help to reopen the conversation without being too pushy.

How to send sponsorship letters

When sending your sponsorship letters, consider the most effective method for each individual sponsor to ensure your letter reaches the right people. While email is a popular option, some sponsors may prefer traditional mail or even a personal phone call. Make sure to tailor your communication to each sponsor's preferences.

Timing is also important when sending sponsorship letters. Plan ahead and make sure to send the letters with ample time for the company to make a decision and allocate a budget for your event or fundraising effort. If possible, send the letter several months in advance to give yourself the best chance of securing sponsorship.

Finally, follow up with each sponsor after sending the sponsorship letter. A polite email or phone call can help ensure that your message was received and considered by the company. Make sure to thank the sponsor for their time and consideration, and continue to build the relationship for future support.

Most Commonly asked questions about sponsorship letter? 

Who should a sponsorship letter be addressed to?

The General manager is often the right person to address if you're contacting a smaller company, particularly if they are a local or regional business. In larger corporations, the right person will be whoever runs the company's Human Resources Department or its CEO. You could call the company or look on its website and determine who handles sponsorships. Try not to guess at this and put in some real effort. To be effective, a sponsorship letter should always be addressed to the right person which also means getting the spelling of their name and their title right. Don't ever address the sponsorship letter to the generic “to whom it may concern.” That is too impersonal and shows you haven't made any real effort in your research.

To save yourself some time, you should also check if the organization has a charitable giving policy so you can align your request with the policy more accurately and increase your chance of securing the sponsorship. .

What is the importance of a Sponsorship Letter?

‍ A sponsorship letter is essentially a donation request that asks a company or individual to sponsor an upcoming event, project, or activity usually by way of providing monetary funds. The purpose of a fundraising sponsorship letter is to convince the benefactor that your fundraising event or project deserves their support and why it will also be beneficial to them to support your cause such as an increase in visibility for the company and its brand. Unlike advertising, which shares specific messages about a company or product in the hopes that it will increase sales, sponsorships improve a brand's recognition and reputation because they support specific events that their target audience cares about. This letter also serves as a personalized invitation to potential sponsors, highlighting the organization's mission and values, the impact their support can make, and the benefits of partnering with the organization. A well-crafted sponsorship letter can make the difference in securing the financial support needed to successfully execute events and fundraising efforts, ultimately making a meaningful impact in the community.

The biggest importance of a sponsorship letter lies in its ability to establish a connection between the non-profit organization and potential sponsors, while effectively communicating the value of their partnership.

What Should Be Included in a Sponsorship Letter?

The basic components of a sponsorship letter should include

1. An introduction to yourself and your organization
2. The event or activity you would like them to sponsor
3. Information about the goals of the event
4. How and why sponsoring the event will be beneficial
5. Your timeframes and contact information
6. A Mention of When You Will Follow Up

4. What things should be avoided in a Sponsorship Letter?

There are several things you want to avoid in your initial outreach. They include

• Sponsorship grids and levels
• Specific financial requests
• Sponsorship agreements asking for a signature or contract the first time you reach out to them
• Requests for free products for in-kind sponsorship
• Pictures of your stakeholders or program users
• Leaflets, pamphlets, samples, or proposals
• Focusing on need
• Assumptions about their target audience or key demographic

5. How to Write a Thank You Letter for Sponsorship

A thank-you letter you send to your sponsors is often called a fulfillment report. In a fulfillment report, you outline the things you promised your sponsors, how much they paid for those benefits, and report on how well you delivered those assets along with the revised value of what you actually delivered.

Remember to also make this personal by addressing it to the right person and making sure it's delivered correctly and on time, aim for thanking your sponsors within one week of the end of your event or campaign (or quarterly if you have a year-long relationship with your sponsors).

Elevate Your Sponsorship Opportunities and Attract More Sponsors with these tips.

Promotions and Incentives

Get creative with the ways you promote your sponsors and donors' involvement in your events and organization. Highlighting their logo and brand across your donation website, communication channels, physical signage, fundraising materials, and event branding can make a big impact. Offering additional exposure opportunities for those willing to donate at higher levels can also help to segment different sponsorship levels.

Thank You Letters

Showing appreciation to your sponsors is key to securing their support for future events. After your fundraiser or event concludes, send a donation acknowledgment letter to your sponsors. Or consider making a personal phone call to thank each sponsor personally, which can go a long way in fostering a strong relationship. By showing authenticity and gratitude, you can create a lasting partnership with your sponsors and increase their support for your organization.

Social Media

Social media is a powerful tool that can bring significant exposure to your non-profit fundraising event. As you draft your sponsorship letter, consider leveraging social media to add value and increase your reach. For instance, you can create a branded hashtag that both your organization and sponsors can use to promote your fundraiser or event. Collaborating with social media influencers who can drive traffic to your site and increase exposure for your sponsors is another effective strategy. By making the most of social media's free marketing, you can sweeten the deal for potential sponsors who are considering your proposal.

Conclusion

Sponsorship is a valuable tool for non-profit organizations looking to make a real difference in their communities. By providing financial support, building partnerships, and engaging with supporters, sponsorship can help organizations achieve their goals and create lasting change.

And sponsorship letters are one of the most powerful tools for non-profits seeking to secure support from sponsors. It is a formal request for support from a company or individual, outlining the goals and objectives of the event and highlighting the benefits of sponsorship.

At its core, a sponsorship letter is about making a connection. It's a way for non-profit organizations to reach out to potential sponsors and build meaningful relationships that can support their mission and make a real impact in the community.

Events and Sponsorship with Paybee.

Make Sponsorship and Event planning a breeze with Paybee’s nonprofit fundraising software - it has everything you need to collect sponsors, accept donations and plan your fundraising events. Our software even allows sponsors to promote their goods or services in the following placements:

• Event lobby waiting area
• Inside the virtual event underneath the auction items
• Main presentation screen during a virtual event
• Chat mentions during a virtual event
• Virtual event invite emails

Need to know more? Or could you use some expert help to get you started? No problem! Give us a call today and our friendly team will be more than happy to help with any queries and get you started on the right track to funding your organization.

Don’t forget, Paybee offers unique features specially designed for live in-person, virtual, and hybrid events. We can help with all types of events by offering help and advice with everything from payments to ticket management and so much more. Sign up for a free demo and you’ll also have the chance to participate in a mock virtual auction and chat with PayBee experts about the online tools the PayBee system offers and our pricing options. This is an excellent chance to see how well your nonprofit meshes with PayBee’s software and support staff, and you’ll be able to see how intuitive our platform is for your staff and guests to use.

So, what are you waiting for? Sign up for a free demo today or give our friendly, helpful team a call and let’s get your silent auction and fundraising events off to a great start, together.

‍