Funding Our Communities: Corporate Sponsorship
Businesses are more than a company or an employer, they are community members too. As a part of the community, their heart should remain in the local community they operate. Sponsorship is great way to show the company’s desire to play a meaningful and active role in improving local community wellbeing. Funding communities through corporate sponsorship creates a mutually beneficial relationship between the community and the company. Using your company’s resources to support community projects can have a range of benefits such as:
- Community involvement can generate goodwill and good relations with people in the community.
- Media exposure and visibility – corporate logos are everywhere during events. This is an effective way of boosting brand visibility. Large events even attract local and national media.
- Image building – a socially responsible business increases its reputation with stakeholders, employees, local authorities and customers.
- Better staff morale – employees who spend lending their skills to the community can increase their job satisfaction and find emotional rewards better than high salary.
- Direct marketing campaign – building relationships with the community can create-word-of-mouth publicity and reduce cost on promotion.
- Business partnership – sponsorship can create business affiliation with the community that can have long lasting connections.
- Networking opportunities – event sponsorship gives companies the chance to get to know potential customers, suppliers and investors.
- Tax benefits – companies making the donation can have positive tax implications. A tax adviser can help determine the extent of tax deductions on contributions.
Sponsorship is a community-business partnership that is mutually beneficial for the company and the community. The community benefits from goods, services or funding support they need for their event or good cause from sponsors. While the company get good publicity and goodwill by sponsoring the community. There are many things a company can do to keep their customers happy while helping their community. Companies can allocate funds to provide grants, a working capital loan or other financial support to the community or community organisations which are undertaking projects that are aligned to their core values. Sponsorship arrangement can be flexible and altered to suit the needs of both parties. Funding the community is very easy and it allows the beneficiary to spend the funds the way that is most suited to their needs.
Companies have a wide range of options to help their local community. These range from financial support to providing long-term support for community projects and schemes. Corporate sponsorship can be delivered through a multi-resourced approach such as community support fund, in-kind support, event sponsorship and grants. Sponsorship doesn’t necessarily require money. There are also non-financial ways to support the community such as:
- Lending equipment
- Administrative support
- Marketing assistance
- Volunteering time and knowledge
- Community events
- Skilled volunteering
- School projects
- Recycling initiatives
Every company can do their part to give something back to the community. This will not only improve their reputation and increase staff morale but will also satisfy customer’s desire to support companies with strong corporate social responsibility programmes that give importance to helping good causes.