Charitable organizations usually have great commercial potential that is overlooked or unrealized. Instead, the organizations make a big mistake and end up with losing sponsorship income. They usually have to pay more attention in order to remain active and successful among various charities.
So, in order to avoid losing sponsorships, charities have to understand some aspects and ensure that they do not make the same mistake. Let’s have a look at some big mistakes and how the organization needs to respond to it.
Appealing to Compassion
When it comes to searching for a sponsor, charities must keep in mind that sponsors usually have numerous foundations for donations. Since all are dedicated to serve the society, it’s necessary to stand out among all and create a distinguishing factor that can grab sponsors’ attention and influence them to go with the organization.
Charities should know that a good sponsor does not consider compassion instead, they are more focused on doing business. So in this situation, charitable organizations must follow these tips:
- Add value to their relation with the target audience
- Adhere to the priorities, passions, values and concerns
- Achieve market objectives by designing effective strategies
Giving Explanations of Where the Money Would be Used
Practically, a sponsor is not concerned about where the donated amount is spent. Since they do not underwrite the cost, there is no use of telling them everything about the activities or projects. The organizations must understand that sponsorship is an unallocated deed and it’s necessary for them to deliver results in the way promised/expected.
Discussing Budget Shortfall
Sponsors don’t pay attention on the budget shortfall of any charity because for them, commercial values and charity financial needs are two different things. So, they should avoid discussing their issues with them.
Contacting the CEO
What most of the charitable organizations do not realize is that upper management, particularly CEOs, are quite busy with their responsibilities that they do not have enough time to attend such requests. Even, most of the calls go unheard because of their busy schedule and involvement to make their organization prosperous.
Since sponsors have been in business for quite a long time, it would be quote daunting for them if charities explain that their sponsorships are tax deductible. They can automatically understand when they come to know that the respective charity has legal existence.
There are various other mistakes that a charity should avoid in order to let sponsors do the work in the way they want.