Guest: Pat Considine and David Winslow, Winslow-Considine
Host: Sean Bailey, Philanthropy-Journal

Sean Bailey:

This is the third edition of Nonprofit Web Talk. For the next couple of weeks, I'll be in here from time to time with David Winslow and Pat Considine. They are the principals of Winslow-Considine, a fund raising counsel firm in Winston-Salem, North Carolina. Both Pat and David have extensive experience in this field. Why don't we start, Pat and David, with each of you giving us a quick sketch of your background. After that, I know that you have some opening comments you want to make about the subject of corporate sponsorship of non-profit.

From there, we can begin to focus on the subject of corporate sponsorship for the arts. I'm sure we'll also have a number of good questions from our readers. Thanks.

David Winslow:

Hi, this is Pat Considine and David Winslow. First, a little about ourselves. Pat has worked professionally in the fund raising field for the past 18 years. Pat began his career by putting together a small nonprofit organization; then worked for a national capital campaign consultig firm. During the last 9 years, Pat served as Director of Special Events for Sara Lee Corporation. During that period, he coordinated the Crosby Celebrity Golf Tournament which, through sponsorships, raised more than $20 million. More recently while at Sara Lee, he worked with the company's sponsorship of the Olympics in both Lillehammer, Norway and Atlanta.

Trained as a classical violinist, David has been working as a professional fund raiser since 1978, working here in the USA, Germany and Italy. After a five-year stint working with the NC School of the Arts, he started consulting with non-profits in 1983. David's focus has primarily been working with providing capital campaign counsel for the arts, historic preservation and social services. Winslow and Considine will combine their expertise in the arts and sponsorship management to create a dialogue on sponsorship in the Arts.

David and Pat:

SPONSORSHIP AND THE ARTS: Framing the Issues Businesses get involved in sponsored activities to give themselves a competitive edge in the market place. A principal goal of many businesses is to borrow the special attributes of the sponsored activity and associate those attributes to the business's product, brand or image.

Non-profit organizations are selling their goodwill, their good name, or a particular special activity that they organize with their volunteers when they enlist sponsors.

Successful sponsorships are made up of equal partners who have a clear understanding of the goals and objectives of each entity. Sponsorship differs from classic fund raising. In sponsorship activities there are expectations from the sponsoring entity that they will receive a definable return on investments. A non-profit cultural organization must understand and be able to articulate their attributes and the attributes of the event or activity they anticipate selling.

Sean Bailey, Philanthropy Journal:

Thanks. Can you give us a good, real-life example of a business that has benefited from its association with a nonprofit or a particular nonprofit event?

Pat Considine:

One good example: A major cultural institution was seeking a sponsor for an exhibition of cultural artifacts from a central European country. A major US bank became the host sponsor of the 6- month exhibit with tickets, signage and hospitality opportunities. In addition, the bank hosted a seminar on doing business with the central European country.

Through the seminar, the following was accomplished: 1. the bank positioned its international services to prospective customers. 2. numerous small businesses (prospective bank customers) learned of the resources available for success in the global marketplace. 3. the ambassador of the central European country spoke at the seminar and served as host at the opening event. Most important, the cultural institution and the bank enhanced their long term relationship -- with the bank finding new international customers and the cultural institution increasing its credibility because the bank recognized its return on investment.

Sean:

What has been the trend in this area in recent years? I sense that corporations and non-profit are getting together in partnerships much more than in the past. Is that right? What's behind this trend?

Pat:

To sell a product, marketers are charged with creating an emotional bond with consumers. They want to create cheerleaders for their brands. They are seeking brand loyalty even when an identical product is on sale for less. You would think that it would be difficult to get a consumer cheering for a laundry detergent, but listen to them cheer on the Tide Car at a NASCAR race. Marketers are using events and partnerships to transfer the attributes -- world class, cutting edge, exhilarating, strongest, sweetest -- to their brands. People transfer the good feelings surrounding an event to the sponsor. Sponsorship investment has increased about 10% a year for the past twelve years. Many companies look for 15% of the marketing dollars to be spent on appropriate sponsorships. It is a $6 billion industry.

Sean:

Cause related marketing seems to be a very big area of activity in this sector. Is that part of what we normally consider a corporate sponsorships? Or is this a separate beast?

Pat:

Cause related marketing is part of the marketing mix for the same reason. Create emotional bonds with consumers and develop brand loyalty. Transfer the emotional connection for finding a cure for breast cancer to a brand of a product that most women purchase -- i.e., hosiery.

Sean:

You say that nonprofits are selling their goodwill. I guess that's the bracing reality behind corporate sponsorship of nonprofit activities, though I think some in the sector would prefer not to see it in such stark terms. Maybe that is how some relationships between the two groups get off track. Can you suggest a couple of points nonprofits ought to consider before they head off in search of a corporate sponsor?

Pat:

When a business is using a non-profit's goodwill, that business must treat it with great respect or the sponsorship will backfire. Consumers don't want to see an organization harmed by big business. The business, to protect its investment, must be providing tangible benefits to the organization when it associates itself with the goodwill of an organization or event.

I think most nonprofit managers who worry about being used by the sponsor should refocus on how to best benefit from the relationship. Its not just a transfer of money. Look at the PR potential, board recruitment, loaned executives for finance or planning needs, etc. A non-profit should understand why it is looking for a sponsor and what it can provide to that sponsor. Sponsors may be looking for employee benefits - tickets - or visibility through media, or hospitality for trade relations. You need to understand each other's goals and objectives to put together an effective relationship.

Sean:

Okay, let's turn to questions from our visitors.

Fr. Bruce:

This may be a bit off target, but I'm trying to raise $750,000 to build a Church. We are starting from the ground up, in that this is the first parish in Maryland, of the Western Rite Old Catholic Church. Are you aware of any fund raising companies, that do it all? Thank you for your consideration. Peace.

David:

To Father Bruce: Yes, there are fund raising companies that "do it all". And there are some that even specialize in Catholic churches/charities. Your best means of finding one in your area is simply to talk to other church leaders to see who they used. Seems to me that the Philanthropy Journal just published an article about the Raleigh Parish putting on a campaign with the help of a firm from New York . . . check last month's issue for the name. I think you can do that through their archives.

Maybe the best way I can help you is by asking you to take the Capital Campaign Test -- which is found on the Philanthropy Journal Home Page ("Raising Big Money?"). Based upon your responses to that, I can steer you in the right direction as, for example, how much help you really need to or should buy. Regards, David.

Manuel:

Hi! I am Manuel the Business Manager of the Handurawan Arts Foundation based in the Philippines. I would like to raise some money go get our stage plays going. I wonder how I may raise the funds since I come from a foreign country. Is it possible to raise funds from US based corporations? Thanks.

David:

To Manuel Bustamante: Yes, you can raise funds from US based companies to help you. And, under the right circumstances, they can even get a tax-deduction from their gift to you. You can likely, of course, only get support from US firms with operations in your area. You can be fairly certain that they already have monies budgeted to support local projects. It's only a matter of finding out who the decision makers are, what their areas of interest are AND the appropriate person or persons to help you meet with them to talk about your project. Good Luck, David

Lyn Lak:

I am Lynn Lak, connected to the Historical Commission in my little town. We are looking for ways to raise money to help save some older buildings in town, one which may be the second or third oldest meeting house in the state. Any ideas? Thanks.

David:

Lynn, I don't know what State you live in. But chances are your state has state-supported preservation office and I'd suggest you start there. We've had great success in raising funds for preservation projects in North Carolina, both with the help of the State and a state-wide non-profit "Preservation North Carolina". You can find the latter on web at "www.Presnc.org". I suggest you write their director, Myrick Howard, through that web site or call him at 919-832-3652. Highly respected nationally, Myrick probably knows the right person to whom to talk.

Laurel LaFramboise:

I'm Laurel LaFramboise, member of the local Grange. We're beginning a five year project to purchase our Grange Hall and renovate it into a community activity center. The center will provide small group space for fine arts/crafts, music/drama, science/agric, children/youth games, and a woodworking shop. I would like to learn how to write grant proposals. Can you recommend a good book or other source that will lead me through the process? I'm learning a lot about sources on the Internet, but not about how to write grants. Thanks.

Hilary House:

I have been asked to solicit local corporate support for a small program designed to teach music and arts to at-risk youth. Since my experience is in grant writing, I don't know what approach to take. Should I start with a letter or visit in person?

David:

To Laurel LaFramboise and Hilary House: There are oodles of books on "How to Write Grants" to be found. The best source is your local library. Or you can find them through the "Chronicle of Philanthropy". From our experience, however, the actual writing of the grant represents on 20% of the process. 80% is achieved through the advance homework which includes figuring out who the right person to talk with is, who associated with your cause knows that person (if possible, that company's interests areas and the amount of money they usually give to a cause like your own. Hilary, if it is at all possible, go visit someone from the company BEFORE you write anything. You'll find that visit to be more valuable than any amount of wordsmithing.

Pat O'Keeffe Keller:

what are the best methods for raising $5000 per year to support a new music program...harp....for both adults and children...plus allow stipend for visiting harp musicians for public discussion/historical ....and video taping all above to be able to start archive?

David:

Your idea sounds wonderful (harp). Honestly would need to know more before I can give you any good ideas about funding. Where are you located? Are you part of an existing non-profit? Is $5,000 really enough to do what you are talking about? Who'd use the tapes that are archived and for what purpose? How does this fit in with other music education programs in your area?

Lisa Goodnough:

Hi, I am the coordinator of Deaf Services at an Independent Living Center. We have had a project in the back of our heads for many years which will hopefully raise awareness in our community and funds for our Center.

We are wanting to have a theatrical play produced in Sign Language. Most professional groups wants several thousand $'s to travel. Since this is my first endeavor to involve the arts, where should I start?

David:

Assuming that you purpose is to RAISE funds for your Deaf Services component of your Independent Learning Center, you must have some idea as to what the event might bring in . . . so you can build the costs of the theatre company into the budget. But, you really should look into having the fee underwritten. I know I have been on grant panels here with the local arts council where we have funded similar initiatives.

Likewise, if you can build a "Special event" around the performance, you might not only enhance the fund raising opportunities but also the chance that you get sponsored by a local business as well. You might start by talking to people some volunteers in your community that have had experience in putting on successful fund raising events. Ask THEM how you might structure an event around the theatrical performance. The performance itself is probably not enough in itself to gain much support . . . so DO consider what could happen before or after the event that would both help drive attendance to the event + give an opportunity for social interaction as well.

Fiona Fountain:

I am working here in England to raise money for a small charity that places original art in hospitals. It is both a showcase for new, young artists and a service to the hospitals. Which would you suggest I stress in corporate appeals? Should I go for drug companies after the hospital link or should I target arts supporters?

David:

What a great idea . . . showcasing the work of young artists in hospitals. All of the angles you have outlined are legitimate and need to be a part of your ask. Assuming that you are NOT simply sending out form letters, I'd craft the approach accordingly, depending upon the source. How would you know what they might be? Spend some time talking with them in advance of your letter or request. Likewise, I'd target both the drug companies and the arts supporters. In the case of Glaxo Wellcome, I think you'll find it fits both categories. At least I have had good success with them on this side of the Pond. I visited London a few years ago on a trip hosted in part by the American chairman of Glaxo Wellcome and was astonished at their hospitality. (This now former chairman collects modern art, by the way). Likewise, I have a friend here -- a medical doctor -- who heads a foundation which gives to arts-related activities in hospitals (but only in NY and NC. )So, people like that ARE out there. Medicine and arts have a long history together and I think you'll find great success. Good luck.

Tom McCormick:

How do you verify how much of a nonprofit's income actually goes to the targeted charity? Request a copy of the last tax return?

David:

I'm not sure I completely understand your question. But, every foundation or non-profit organization is required by law to file a 990 tax return which lists what you seem to want to know. By law, they have to be able to produce a copy of same to anyone who asks. Likewise, you can get a copy from the IRS if you so please -- and don't want anyone to know you are snooping around.

Rich Hittinger:

I am working with an organization that gives support to under-privileged children in RI. Our programs have been a great success. In fact one program, our late afternoon meal program, is so successful that we are almost out of funds from our FEMA grant. We have served over 5000 meals since September with approximately $6,000 support. Do you have any ideas who we could approach very quickly to get funding to continue the program? One big problem will be getting funds quickly. Thanks for any ideas.

David:

5,000 meals with only $6,000? Amazing. I'm not sure I have enough info to answer your question. Particularly in that you need $$$ fast. Can you email me more info (winslow@ols.net ) or call me 910- 722-7982 so I can learn more? Thanks.

Darja:

I am looking for funding for field development for youth soccer in a small Canadian city. I would like to ideally ask 150 donors for $1,000. and my problem would be solved, however , life is not that simple. I need suggestions to raise this capital in a 10 month time-line. This seems to be American based and perhaps I am in the wrong place - suggestions - PLEASE!

David:

Sounds like you need about $150,000 Canadian for youth soccer? No, I would not ask 150 people for $1,000 a piece. That's a recipe for disaster. Wealth (even in your wonderful country ) is not distributed evenly. Some are capable of giving much more, many much less. The standard rule of thumb is to identify and target several donors (the rule of thumb is three real ones for a gift of 15-20 per cent of the goal). Probably half (or more) of the money should come from about only ten donors. Even in this country (and especially yours I'd be exploring the possibilities of municipal support as well. With the sum you are seeking, I'd want to avoid the "bake-sale" approach as well -- unless its part of a larger strategy to raise awareness and leverage larger sums.

But keep your eyes ALWAYS on those top ten gifts. We had a mayor of small town stop us at a conference last year and he was seeking a similar sum for another project. We spent only 45 minutes advising him. He dropped by our office the other day to tell us that he had achieved goal and the reason why was that we had forced him to focus on those top gifts, which made all the difference in the world. Good luck!

Thomas A. Carder:

I am the president of a nonprofit 501(c(3) Christian ministry called the ChildCare Action Project: Christian Analysis of American Culture (CAP). We are dedicated to investigating and reporting on the impact of the American culture on the integrity, self-esteem, and coping skills of our youth, and inherently on family unity and values. We use the teachings of Jesus as our Investigation Standards. The only funding we have received has been donations from ministries which account for having 0.4% of the projected budget. I have officially solicited funding only thrice from three different foundations -- all three said "NO." I haven't had a paycheck for 1.5 years and must very, very soon find for work in the secular world. Is there anything you can do to help? In the sweet and holy name of Jesus: Lord, Master, Teacher, Savior, God: Thomas A. Carder

David:

Sometimes you'd never guess that the vast majority of giving goes to religious organizations, yes? You'll find many -- not all -- foundations are not inclined to give to religious causes. At least that is our experience here.

Likewise, there are some which ONLY give to religious organizations. I have served on the advisory board for a local Christian social service ministry here and found some success with foundations; but our more steady source of income has been from other churches. Raising funds from local churches is truly a chore as every church and demonination seems to have its own timetable and the people controlling the money change all of the time.

But, done consistently and well, it can be a very important source of operating income and well worth the time. Back to the foundations . . . your cause seems like it would be relevant to probably a smaller, family run foundation. I can think of a few here that might respond IF you were located here. Where are you? And have you done much in the way of foundation research?

Gene Wenner:

I am serving as a consultants with some arts groups in communities that have United Arts funding. It is difficult to get sponsorship from companies that have given to the Arts Fund Drive. What do you suggest?

David:

Thank you. A question regarding the arts! As you may know, North Carolina is full of United Arts funds. I think Winston-Salem (from where I am writing) formed the first arts council in the USA in 1949. So, I'm aware of your problem. I'll probably ask Pat (who is out of town until Wednesday ) to add to my answer. But, one of the reasons we have been developing sponsorship programs for the arts (building from Pat's experience with sports/Olympics) is because of the dilemma your describe. Properly positioned, the benefits to the corporation should be so obvious and important to them that it becomes a "no-brainer" for them.

And the money might come from the marketing vs. contributions side of the company as well. From their perspective, it has to be sold on a number of levels . . . moving product, employee involvement, vender relations, community and government relations are all a part. Sometimes, as was the case of the bank and the central-European project we described earlier, the actual event or pay-off may have little to do with what the CLIENT perceives they need the money for. Yet. it worked . . . not just for the event itself, but in bringing together the $$$ for the entire exhibit. I know that Pat is going to be outlining some basic principles behind some of what we are doing in the coming days . . . so stay tuned.

Amy:

I am the treasurer for the Sophomore class at a small Christian College in California and I need fund raising ideas that will get people involved and raise money to have banquets and the likes.

David:

You're right on target talking about needing to get people involved. Involvement is one of the most important keys to fund raising. There's an old fund raising axiom . . . that there are FIVE "I's" to fund raising. Identify (your prospective donor)/ Interest/ Inform/ Involve/ Invest ($$$)! Back up a bit though. How much do want to raise? Where would the money be spent? Do the people (like you and your fellow officers) believe enough to give and do so generously? Are they willing to work in an organized, concerted manner interest and inform others of the cause? Can you make it fun? Tell me more about what you are thinking about!

Maia:

If your organization happens to have a deficit, which is being slowly reduced, what is the best way to approach this "problem" when trying to solicit corporate sponsors, who do tend to examine your organization's financials?

David:

Ultimately, the sponsor is going to be interested in your organization's ability to deliver on its side of the bargain. It's all about credibility. And your past deficit problems can be a stumbling block.

Our experience is the best means of dealing with your past problems is (1 with clear, strong and well thought-out FUTURE vision; (2 committed and credible leadership who is willing to help you sell that vision. Be prepared to talk about the past, but focus the conversations on the future.

A few years ago, we took on an arts organization which had an accumulated deficit of $500,000 and a poor public image. We spent about three months working with a community based (non-board) committee in studying the organization and arrived at such a strong vision for the future that the money just poured in. (We were helped by the fact that community leaders were really quite fed up with past failures and promises.) As a result, we were able to eliminate the debt and re-capitalize the organization. The re-capitalization part was an important selling tool to the business community -- a concept they readily understood that simply eliminating the deficit was not going to really solve the problem. The organization went on to earn a profit of more than $1,000,000 in the first year after our plan was instituted. In the end, it all boiled down to a strong, viable vision for the future and committed volunteer leadership (Thanks for your question: We're working with another difficult problem arts client right now and answering this just gave me some important insights as to how to tackle their problem!)

Kristin Crawford:

While the organization I work for, National Group Rides And Designated Drivers (button is not an arts-based group, we too face some tough funding issues. I founded National GRADD as the first professional organization to work with colleges and universities on drinking and driving prevention. By enabling schools to work together, National GRADD assists in the development of safe ride home programs to save lives from driving under the influence of alcohol. Since our organization is service-based, I find myself selling a "concept" to potential corporate sponsors. Somehow a funding plan that gives these sponsors publicity benefits (both nationally and locally) within the college communities we work with needs to be laid out and adopted by large, national corporations. The publicity benefits for sponsoring companies has great potential, but I fall short when it comes to finding the best method of approach. Do you have to *KNOW* someone to get anything other than the standard, "thanks, but come back when you're bigger"? Already, in only two years, I've built our network from 8 interested schools to over 100. Without corporate support soon I'll have to abandon my dream just to put food on my table.

David:

I'll probably toss your question to Pat to answer more fully. He's due back tonight and will be back on line tomorrow. But I have some thoughts in the meantime.

When Pat was an exec at Sara Lee, he headed their foundation which gave away millions to substance abuse prevention programs nationwide.

Subsequently, he tricked me into working "prob-bono" on a number of different local initiatives including "Project Graduation" and First Night events. That work, in turn, has led to working with a number of other organizations which work in the area of substance abuse. So, I have some background in the field. Over the years I have been amazed at how the issue of substance abuse moves on and off the radar screens so quickly.

More than any topic I have seen, it can command front and center of the public's interest/concern and then seemingly disappear. But that aside, I sense that you have done a great job of selling the public relations aspect of sponsorship equation.

But the PR aspect is only a part of the dynamic at play with a fully developed sponsorship approach. Watch/read carefully what Pat will have to say in the coming days about the other parts of the equation. And I'll make sure that Pat expands upon this answer (and really answer your questions.)

Rae:

How do I fund corporate sponsors who might be interested in our program, and how do I go about initial contacts. What is the best approach i.e. letter, phone, person. Thanks.

David:

Rae, Pat's going to be posting some general info in the next day of so that might help you. As to HOW you make your contacts . . . as is always the case, in person is best, phone is less desirable and letter is the worst.

(There are countless studies on each of those approaches.) You don't say anything about your program or organization and what it is. Let's watch for what Pat posts and see if it is helpful. If not, write us back with more info and we will be sure to put our heads together to give you the best answer.

Jeremy Hill:

Hello, I am interested in starting a drum corps. A drum corps is sort of like a marching band. It is a private organization. What types of corporate sponsors would be most effective to target for sponsorship?

David:

Hi Jeremy. Yes, I'm very familiar with drum corps. We helped fund one which was associated with the local YWCA here. They are a great means of building a sense of community and discipline. Assuming that I am correct about the above -- the one we worked with was targeting at risk, inner-city youth -- the chances of securing corporate sponsor probably is small. (Pat may disagree and I will ask him to look at your question and my response.) You are probably better off going the standard donation route . . . meaning that you might ask for contributions that "sponsor" an individual participant, their uniforms or their participation in an event in return for some kind of "recognition". But as I see it, given your start-up situation and size, you probably have little to offer in terms of how we define "sponsorship". Follow the answer page in the coming days as we explain more.

Gene C. Wenner:

In reference to Fiona's program for art in the hospital, she might also include "hand-on" art experiences for the patients. I did such a program, but it had to be constructed in such a way as to accommodate the brief time the patient usually stays and it should result in a "product" that can be shared or taken home. Nurses ar convinced this is a very helpful technique to take the patient's mind off why they are there.

Becky:

I have 2 underwriting sponsors of a Cruise & Travel Show who each gave $5,000. One wants to be the presenting, title sponsor while the other one adamantly doesn't. The one that doesn't is a grocery chain and doesn't want someone who might go on a trip they book at the show to blame them is ,say, their luggage is lost. How do I make them both happy?

Pat:

To Becky: We're assuming that this is a local cruise, organized in part by a local non- profit. And there some public benefit for the non-profit because of the cruise. Based upon the information you have provided, I'd advise talking again with the grocery chain and explore other ways that you can bring benefit, through your constituency, to them.

Part Two