Be smart with resources when sponsoring events

I receive almost a hundred event-sponsorship invitations a year from not-for-profit organizations asking my firm to sponsor everything from galas to golf tournaments. I'm sure this sounds familiar to most company heads and business owners.

Sponsorship levels include placements like golf-course tee sponsorships, journal ads, special listings on invitations and even big-ticket opportunities costing up to $25,000 to put your company name on an event.

Support what you believe in

All of these are worthy causes and deserve a close look. But many companies raid their resources set aside for marketing to support a friend who is on a not-for-profit's board or because they think it is a good cause.

These companies are not alone — I do it, too.

Part of owning a business is being a good corporate citizen and giving back to the right causes run by the right people making a difference in our community. But do so with the proper mind-set. If it is a cause you want to donate to because you believe in it — terrific — and we need more of you in this world.

Use discipline in your budget

The other part of this proper mind-set is to remember that each dollar spent supporting a cause could be leveraged on other types of marketing initiatives. Many companies allocate a certain percentage of their advertising budget specifically for corporate giving and sponsorships. This kind of budget discipline is the only way to keep marketing and sponsorship costs under control.
Allocating these resources in advance rather than buying sponsorships sporadically and without planning reduces the risk of cutting deep into the essential components of your overall marketing program.

Pick appropriate audiences

In addition to being prudent with your marketing dollars, it's critical to choose sponsorships which offer value, brand recognition and the right audiences. In today's economy, every dollar counts. So, if possible and done in a classy way, make your company's charitable giving a marketing resource.

For example, if you own a high-end salon and spa with mostly female clients, sponsoring auto racing at the local speedway is not smart use of your marketing dollars. But a spa becoming a sponsor of a professional women's organization event or breast cancer fundraiser makes a lot of sense.

It's all about being strategic when evaluating journal ad and event sponsorship opportunities. Smart decision-making, as you do with other advertising, will make these sponsorships reap positive returns on investment.

Then again, if you're just doing it for the cause, then that's the other mind-set I mentioned. Either way, giving back is a beautiful thing.