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Contents Page 3 Page 4 Page 5 Page 6 Page 7 Page 9 Page 10
Introduction What is sponsorship? Identification Selection Proposition Negotiation Securing the contract and payment
Support Staff Tom Worman Business and Marketing Manager T: 02392 84 3417 E: tom.worman@upsu.net
Cherelyn Cuthbert Financial Supervisor T: 02392 84 3102 E: cherelyn.cuthbert@upsu.net
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Introduction Sponsorship can be an important source of income for Clubs, Societies & Projects. This guide looks at how to go about getting sponsorship and other forms of external funding, and the Union’s rules for how that funding must be administered.
plays an important role in building brands and enabling customers (you and your members) to experience the company’s philosophy and positioning.
Sponsorship allows brands to be associated with customer passions, such as sports, culture or enterWhen to seek Sponsorship tainment, which we know they students actively seek out. EngagThe best time to get Sponsorship ing with students in these relevant is during the summer break. Most and trusted environments will help companies will have spent the ma- build brand purchase preference jority of their allocated sponsor- and loyalty, and ultimately drive business growth. ship funds by Christmas. There isn’t a one size fits all solution to sponsorship, so leave some room for the company to make suggestions and input into making their sponsorship generate a If you have any questions not an- return on investment or achieveswered in this booklet, contact the ment of organisational goals. Business and Marketing Manager at the Students’ Union Be aware that the country’s current economic situation may hinder the amount of sponsorship you receive this year.
Understanding Sponsorship Understanding why sponsorship is an important marketing tool for companies is vital to the success of your proposal. Sponsorship www.upsu.net/training
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What is sponsorship? Before you even start to think about sponsorship for your activity it’s vital that you understand what the Union defines as sponsorship, advertising and donations. To keep things simple there are essentially two forms of sponsorship; financial support and product/service based.
of promotion. If in doubt at any time please see the Business and Marketing Manager who will be able to offer further guidance. The most important thing to note is that you cannot offer advertising without consulting with the Business and Marketing Manager at the Union. Not only does this mean that you cannot offer adverts in the Galleon, in poster boards or onsite stalls but you also cannot offer companies stalls at Freshers Fayre or Refreshers Fayre.You also cannot endorse or support any Wednesday night activities that rival the Union’s ‘Purple Wednesday’.
Most activities seek financial sponsorship to help develop and fund activities. Financial sponsorship is in any situation that a company or brand gives your activity money in return for brand presence, peerrecommendations or endorsements, kit branding, or for association. What you can do during Freshers is (if you’ve taken financial sponOccasionally companies such as sorship) include fliers or promoequipment suppliers offer support tional giveaways in your goodbags, through product samples or dis- include logos on your Freshers counts. This is still sponsorship, so promotional t-shirts and artwork. you are still required to complete a contract, however as there is no The final aspect is to understand financial exchange the Union does the Union’s definition of donanot take a 10% administration tions. Put simply a donation is a charge. However, be wary of these financial contribution or product deals, you should be getting a good donated to an activity without any deal such as 50% off kit rather than requirements to promote a brand 5% in exchange for large amounts or company. page 4 | Sponsorship
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Identification Firstly, you must identify what the benefits of sponsorship would be, both for the supplier and to your Club, Society or Project. It is better to consider what you can offer a company rather than your needs. Benefits to the sponsor may include: • Raising awareness of their company/brand/product • Creating sales opportunities • Links with community activity • Social responsibility • Enhancing their image • Creating good relations with students who may be potential customers • Supporting product launches • Offering research potential • Association with a good cause
Sponsorship may also be sought for longer-term projects and giftsin-kind. In return, the Club, Society or Project can offer advertising to students and others; raise the company’s profile amongst some of the most sought-after graduates in the country; gain coverage with student and local media and also think about how it might wish to include the sponsor at the event (e.g. sitting on a judging panel, running workshops, guest speakers etc).
Make sure you also know who you are – make sure you know about your Club, Society or Project in detail, its history and any future plans that you or your predecessors have published. Make sure you know what the turnover of your The benefits to the Club, Society group is, and what the demographor project would the solution to ics of your members are. a funding requirement as well as increased publicity by being associ- Also, ensure you are aware of the ated with the sponsor. University and where it currently is in University Rankings – both acSponsorship can be offered for a ademic (such as the Times’ Higher number of activities. Most of the Education Ranking UK and Globtime they will be one-off deals: a ally) and non-academic (such as charity show, publication, sporting BUCS rankings). event, leaflets or posters. www.upsu.net/training
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Selection
Initially, think about who has sponsored your group in the past; speak to older and former members and review sponsors from previous years. Also consider your equipment suppliers, and contacts that you and your committee may have within suppliers and companies.
vice on what projects they may or may not support and establish a contact within the organisation or gain contact details for their marketing department. If you already have a contact within the company then go via them or ask for an endorsement.
Once you have a shortlist of companies you think you should approach, you need to refine your search and then establish contact with the potential sponsors. Ask them for their Annual Report, ad-
Remember to delegate one committee member who will be responsible for any questions potential donors may have – and make sure they actually answer questions and maintain regular contact.
Exercise: With your committee generate a list of potential sponsors and the beneďŹ ts you can offer to these companies that will encourage sponsorship. page 6 | Sponsorship
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Proposition Now that you have identified some Some examples of benefits to the potential sponsors and what you sponsor include: can offer them, you need to generate a proposal. • Logo on all activity market collateral The length of your proposal is de- • Inclusion on PR and media pendant on the scale of the project, campaigns but at a minimum should contain: • Option to send your members email marketing (you adminis• Activity title ter this) • Introduction to your activity • Campus brand ambassadors • Proposal summary • Sector exclusivity o What you want • Online branding • Advert on Club webpage o Why you want it o What you want it for • Social Network exposure o When you want it • Data capture opportunities o How they can help • Arranging talks by the compa o How they will benefit ny to gain exposure to mem o How much will it cost bers of your Club, Society • Options – can they sponsor or Project – as well as their the publicity, a portion of the friends total sponsorship or are they the sole sponsor? Remember to address letters or • Key Strengths – re-emphasise emails to a specific individual – the benefits of the activity otherwise it will almost certainly • Contact details end up being binned. When con• Enclose any relevant materials structing your proposal remember: such as photos of your group • Do not under-cost. Ask for or quotes for items more than you need Ensure you make it clear to the • Be creative sponsor what benefits they will • Include all costs and allocate gain from sponsoring your event. overhead costs if possible www.upsu.net/training
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• •
Do not pull a number out of thin air Don’t forget to add VAT to any costs Describe what you intend to do with the money Break down expenditure to help identify all costs Cost each item using best estimates and obtain quotes Decide whether this is a reasonable total Does your proposal offer value for money?
addresses in the correct places and make sure the spelling and grammar are correct.
You shouldn’t just write to say “please can we have some money because we are good and we want • to get better”. Remember, different levels of sponsorship can be of• fered to different companies – but make sure you are clear about the • benefits to each potential sponsor, and be careful not to duplicate • benefits if they cannot be duplicated. Plus don’t forget that sponDon’t cut corners and write a let- sorship doesn’t necessarily need ter on cheap or non-headed paper top be financial – free equipment – it makes you look amateur and or supplies can be just as helpful a bit unprofessional. It is worth to running of your Club, Society or investing a little bit of money. Re- Project. member basic letter skills – get the •
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Negotiation
Your initial reply may be yes or no. However you may not hear anything at all. In this case, you should chase up your proposal with a phone call to confirm the proposal has arrived, ask when it may be considered, and ask if any further information is required. However, be careful not to harass them.
criteria. Other companies may show an interest and get back with specific questions or say they will be considering your application at the next meeting.
Expect to hear from approximately 50% of the companies you contact. When you receive a positive reply, respond with a brief thank you. If Be sure to keep track of your pro- they have turned you down, think gress by making photocopies of about approaching the company all information sent out to each on another occasion, perhaps durinidividual company and keep a ing the next academic year or for a summary list. Some companies will different type of evet. reply saying no in a variety of ways, Remember some companies may e.g. they are not able to support at prefer to sponsor a more academithis time as they do not have the cally meaningful event rather than budget or it does not fit with their a ball or party. www.upsu.net/training
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Securing the contract and payment Once you have concluded the negotations and you have a willing sponsor, you will need to draw up a contract.
details. So your £500 could be just £375 in your account. The reason the Union requires a 10% fee is because not only do we provide a support service at the Union to help retain sponsors and advice but we also provide staff support and our contracts have to go via solicitors to ensure they are legally binding.
The Students’ Union uses a standardised contract template available from the Business and Marketing Manager. This has been drawn up by the Students’ Union solicitors and clearly outlines the details required to create a legally binding You must NOT sign any contracts deal. yourself, your activities do not exist as a legal entity and the only In most cases you will be required person who can sign contracts for to prepare the contract yourself, the Students’ Union is the Chief completing the cover sheet with Executive. your activity details, the sponsor’s contact details, the benefits the Once you’ve completed the form, sponsor will receive (such as ban- get the sponsor to sign 2 copies ner advertising on your website, and deliver them to the Business attendance at a specific event and and Marketing Manager, who will logos on playing kit). review the contracts and ensure they are signed by the Chief ExYou must be sure to identify with ecutive, a copy of which will be the sponsor whether the agreed returned to the sponsor and the income is inclusive or exclusive remaining copy stored securely in of VAT (which currently stands at the Students’ Union. 20%). £500 sponsorship may mean just that and you’ll recieve just The finance department will generate an invoice to go to the spon£416.66 after VAT is removed. sor in the post. Allow at least 30 The Union will also take a 10% days for the sponsor to pay the administration fee on sponsorship invoice. If the invoice is still outpage 10 | Sponsorship
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standing after this time contact the sponsor and chase them for payment, if they haven’t paid after 60 days make contact with the Finance Department.
IMPORTANT NOTES
For example, if you are staging an event, you could survey the people leaving the event if they were aware of the company’s involvement and their knowledge of the company. This will indicate how effectively you have publicised the company’s involvement.
Do not promise what you cannot deliver.
Additionally, have you monitored the media coverage? These can be presented to the company as part of the follow-up.
Try to stand out from others in terms of professionalism and creativity; you will be competing against other causes.
Sponsorship money will not appear within your accounts until the invoice has been paid. Do not spend the money until it is actually Keep in regular contact with your in your accounts. sponsors. Report back, let your sponsors know how everything Do not start your email. “Dear Sir/ is going and what their money Madam”; this is the fast route to has achieved for the Club, Society the recycling bin. or Project. However if things go wrong be prepared to return the Do not assume they know who money if the planned activity does you are, explain in explain in exnot go ahead. plicit commercial terms who you are, and what the potential benIf you want to pull out all the stops efits are for them. and really impress the sponsor you could evaluate the success of the Make sure the contract states company’s involvement in the cam- clearly whether the fee includes or paign/project. excludes VAT
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Be to the point and concise - make the proposal easy to scan. Plan ahead, give them at least 2 months to consider the proposal.
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University of Portsmouth Students’ Union Cambridge Road, Portsmouth, Hampshire, PO1 2EF business@upsu.net | 02392 84 3417 page 12 | Sponsorship
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