As a small business owner, you have a responsibility to the community. Apart from providing goods and services, you also have to give back to those that cannot fend for themselves. You can effectively assist those in poverty either through sponsorship or cause marketing.
How Sponsorship Works
With sponsorship, your firm donates directly to a nonprofit firm that organizes a community event. The nonprofit then uses its marketing team to let the public know that you contributed to the community affair. As a result, your firm has less control over what’s said about it.
In addition, before sponsoring an event, you have to align yourself with the nonprofit. You have no control over the idea, but you can decide whether or not you want to support it. Luckily, in most situations, the nonprofit’s idea aligns with your firm’s main objectives.
Advantages of Sponsorship for the Nonprofit Organization
- Since nonprofits are created to benefit the community, funding is usually a problem. By getting sponsors, the nonprofit gets the money that it desperately needs to organize the charity event.
- Sponsorship also prevents the nonprofit from collapsing due to lack of money. The money received can also be used to fund the nonprofit’s operations.
Advantages of Sponsorship for Your Business
- The nonprofit markets your brand on your behalf; hence, reducing your advertising costs.
- Since nonprofits are well connected with the community, sponsorship increases your brand’s reach and recognition.
How Cause Marketing Works
With cause marketing, you partner with a nonprofit to champion a noble cause. However, unlike sponsorship, your firm uses its resources to market the cause and your brand with the main aim of increasing sales for your products.
Here, you align yourself with the idea that’s closely related to your firm’s overall objectives before embarking on a cause marketing campaign. Since it’s a direct partnership, both you and the nonprofit have a say in the cause’s main idea.
Advantages of Cause Marketing for the Nonprofit
- It enables the nonprofit to use your marketing resources to notify the public about the charity event.
- Since the community event is likely to receive wide media coverage, cause marketing will improve the image of the nonprofit and lead to more donors pledging their support for the organization.
Advantages of Cause Marketing for Your Business
- Since cause marketing involves direct participation of your business to the cause, it boosts your employees’ morale. They feel like they are part of something bigger than themselves.
- It improves your overall sales since customers will associate your brand with the cause and purchase from their hearts.
Cause marketing and sponsorship benefit both your small business and the charitable organization by increasing exposure. Both campaigns can help you increase your sales and assist the charitable organization to get more donors.
