Developing and maintaining a relationship with a sponsor can be extremely rewarding but it is another area of activity that requires time and effort and someone dedicated to the job.

It can help you to broaden your financial base and enhance your image, but it is not a quick fix to financial problems. As with all sources of financial support, potential sponsors will have to be carefully researched. Targeted sponsorship packages should be developed to meet your needs and the needs of the sponsor. It can take up to 12 months (and sometimes more!) to develop the relationship with a potential sponsor and to reach a deal.

Arts & Business

Arts & Business is a national organisation which aims to bring together the arts and business communities locally through regional offices. They have produced the Arts & Business Introduction to Sponsorship guide.

Why businesses sponsor?
A business may have one or more of the following objectives in mind when they think about supporting a festival:

• Sociological Objectives - this could be linked to their corporate social responsibility (usually expressed as a charitable donation rather than as a sponsorship deal). In particular large national/international companies like to forge links with local communities in which they have branches and small businesses often wish to support local organisations.
• Broad Business Objectives - their image, branding, to be associated with  something of quality
• Specific Business Objectives - connecting with a specific market/ target, opportunity to put something back into their own company  

How to go about gaining sponsorship

The following section uses extracts from Visit Wales Timeline for Events toolkit.

Commercial sponsorship is a major factor in the financial success of many festivals and events. Gaining sponsorship, at local or national level, is very competitive. You need to demonstrate strong benefits to the sponsor, and their sponsorship can either be a cash-donation or an in-kind contribution (of goods or services). Identifying and attracting potential sponsors requires effort, perseverance and a commitment to the relationship with your sponsor.

In-kind sponsorship: some organisations may be able to provide 'in-kind' sponsorship. This can be as useful as cash in reducing costs or obtaining goods and services which you would otherwise be unable to afford but which could cost your sponsor relatively little, e.g. a pull-out section publicising your event in your local newspaper or assistance on legal maters from a local solicitor.

Research: Start by identifying potential contacts, as your committee or network of contacts may be able to help identify contacts who could introduce you to potential sponsors. It is always easier to strike up a discussion or conversation with an organisation after a personal introduction. You could arrange to go to meet potential sponsors and discuss their requirements with them fully. It is likely that they will have their own ideas on how their association with your festival can be developed to mutual advantage.

Draw a target list of appropriate companies. So rather than approach 20 organisations, carefully choose 5 organisations that form a good 'match' with what you are trying to do.

Realistic Targets: you should set realistic targets for potential cash sponsors. Over-ambition can frighten off smaller potential sponsors. On the other hand it is important to have a clear idea of the cost of the package to you and the value of it to your sponsor. Sometimes arts organisations under price their sponsorship packages - if your target says yes without hesitation then perhaps you could have asked for more.

Be aware of the work for you: once you have identified the amount of money you would like to raise through sponsorship you have to decide whether the effort needed to find sponsorship will be proportionate to the benefit of getting the money. Cultivating sponsorship agreements can be very time consuming, however if it pays off it can provide a good source of income.

Clarify the benefits to the sponsor. These will range from a name check or displaying their logo in your publicity to more strategic joint business opportunities. Think about including some of the following benefits to your sponsor before your initial contact and decide which you think they will get from you:

• Association with a successful brand (i.e. you)
• Association with a specific event that is linked totheir line of work/interests
• Contact with an existing or a new market (i.e. your audience)
• Entertainment opportunities for their existing/new clients/business targets
• Advertising opportunities at the event
• Company's logo/name on all printed material
• Company's logo/name on merchandising (e.g. T-shirts)
• Company's logo/name shown on festival banners and point of sale displays
• A website link from your site to that of the sponsor
• Reference and brief details included in all PR
• Offer of free VIP tickets and opportunity to purchase more at a discounted rate
• Product placement e.g. samples given to audience/participants and/or a stall at the event to display their products/services
• Exhibition space
• Sponsor's name added to festival/event title (an example of where you need to have a very good idea of the value of this to your sponsor)

Remember that sponsorship is a competitive field and sponsors sometimes leave making their decisions until the very last minute and may be less predictable than raising support from public sector sources. So your approach and offer need to be professional, to the point and offer value for money.

Involve them: once a sponsor has committed to the event, involve them in all PR opportunities and keep them up-to-date with news in order to develop the relationship so that they are more likely to sponsor again in future years.

Some useful contacts for further information include:

Arts & Business
Arts & Business can help you to develop contacts with potential sponsors. The also run seminars and training in sponsorship development. Contact staff in the South West office for further information:

Tel. 0117 929 0522

E-mail: south.west@aandb.org.uk
http://www.aandb.org.uk/

They have published a Sponsorship Manual (£15, p+p is free in the UK) - 'The essential guide to sponsorship of the arts: includes a five step plan of how to obtain sponsorship'. Details about how to purchase a copy are available on their website.

Business in the Community
Aims to help charities obtain more support from business. This ranges from cash donations and sponsorship to employee volunteering and gifts-in-kind.

They provide a free on-line resource centre for information and advice to assist in the practical development of business community partnerships, organise local brokering events to facilitate face-to-face contact between potential community and business partners, and offer training courses to improve knowledge and skills within charities to develop effective business community partnerships.

Websites
The UK Sponsorship Database http://www.uksponsorship.com/home.htm  provides an online database of UK sponsorship opportunities.