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| Re: Paying a percentage for finding marketing donors
Posted by fundie5   on 10/5/2009, 9:34 am, in reply to "Re: Paying a percentage for finding marketing donors"
Thank you very much, Tony, for this thorough and useful response.
To clarify, our young non-profit organization exists to run a free public arts gathering that already attracts a large (and growing) and very passionate audience. While we don't yet have demographic surveys -- this is a couple of months down the pipe -- the audience is obviously very attractive to lifestyle/youth brands.
We have small, existing marketing sponsorships from community businesses seeking to be promoted on our event map, and are now looking to reach out to a broader base for support of new programs.
There has been some confusion in our board discussions on the concept that there is some split between funds raised via these marketing sponsorships (with the expectation on behalf of the sponsor that they will get some well understood added value and visibility) and the notion of larger checks which fund programs but give the sponsor some yet-to-be-determined on-site signage and other promotional presence.
Is there some canonical document in the non-profit world that delineates the difference between purely charitable donations from sponsors, and more specifically marketing-related sponsorships? Is the two-check scenario you described in your post a standard way in which a sponsor, understanding that a broker is getting a share of the monies paid for marketing, might ensure that in the second check all monies go directly to the charity's programs and administration?
One of our fundamental concerns is that our potential broker has not spoken about any split between charitable donations and marketing sponsorships, but has simply talked about a flat 20% fee of funds obtained, for his solicitation services. Obviously, we have many questions still to ask.
We'll be making some calls today to local advertising/PR firms seeking to get an idea of what they might be able to offer us in the way of support if we entered into a relationship with them in order to connect with their clients. This should give us a better idea of what we ought to expect any broker or agency to provide, in the way of support for dealing with how the sponsors are represented at the event and in published marketing material, and what share of the sponsor income is expected by a broker.
We'll also be interested in seeing if these agencies see a distinction between charitable contributions from a client they bring to us, and purely marketing exchanges.
Thanks again for all the good advice and questions that you have raised. We are grateful for your expertise!
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