Why Businesses Sponsorships Pay: The Facts

spring flowersEaster Sunday.

The Sarasota Herald Tribune’s front-page wrap states: “The Coldwell Banker Difference, building stronger, more empowered communities. Through the Coldwell Banker Residential Real Estate CARES Foundation, we contribute our time, talent, and resources to help ensure a brighter future for everyone who calls Florida home.” Underneath is a photo. Two hands extend to make a heart shape with the backdrop of a beautiful Florida sky.

Why on earth doesn’t Coldwell Banker invest its ad space showing us beautiful homes? Or a family frolicking in a backyard pool? Why lead with the CARES Foundation?

It works for their bottom line.

In Southwest Florida, Easter marks the end of the height of the tourist season. Rather than go North to shiver, hundreds of visitors want to stay. Unfortunately, the vacation is over, and they must go unless they decide to purchase a home. Coldwell Banker’s ad invites visitors to find such a home with them, a firm that cares about Florida.

By working with nonprofits, businesses benefited from lower costs and increased income. This article shares recent statistics that affirm the wisdom of Coldwell Banker’s front-page wrap and the assertion that corporate nonprofit alliances reduce business costs and increase business income. Use them and facts like them to support your proposals for business sponsorships.

  • Nearly 90 percent of Americansbelieve that businesses need to place at least an equal weight on society’s interests as on business interests.” [1]
  • Eighty-nine percent of U.S. consumers assert that they would change to a brand linked with a caus given similar quality and price. [2]
  • Ninety-seven percent of business executives think that cause marketing is a valid business strategy.[3]
  • Seventy-eight percent of business leaders rate engagement in nonprofits as urgent and essential.[4]
  • Business marketing investment in social causes has grown from 120 million in 1990 to 1.85 billion in 2014.[5]

What does this data tell us?

Most Americans expect businesses to support better communities. When it comes to consumer goods, all things being equal, we believe we choose products and services linked with a cause. In our businesses, we recognize the distinctive value of cause alliances in our words, investment decisions, and their potential to inspire our employees. The data supports Coldwell Banker Easter’s investment. It supports our close exploration of how cause alliances can be used as a business strategy to reduce costs and grow income.      

 [1] Edelman Good Purpose Study

[2] 2013 Cone Communications Social Impact Study.

[3] For Momentum.

[4] Good Scout.

[5] IEG Sponsorship Report.

For more answers, check out this Nonprofit  CEO Library.

For solutions delivered to your inbox sign up for Karen’s CEO Solutions.


Karen Eber Davis

Karen Eber Davis Consulting guides executive directors and CEOs to generate the resources, boards, and support they need to make remarkable progress on their missions. As the award-winning thought-leader, advisor, and founding principal of Karen Eber Davis Consulting, Karen helps nonprofit leaders get answers, generate revenue, and grow their mission. Davis is known for her innovation and practicality based on her work with or visits to over 1,000 nonprofit organizations and her experience leading board and team events. She is the author of 7 Nonprofit Income Streams and Let's Raise Nonprofit Millions Together.