Charity Sponsorship: Top 5 Reasons Why Companies Get Involved 24th February, 2011

With the current economic downturn and the critical financial issues of the market, it is vital that companies find new ways to differentiate themselves against their competitors and increase brand awareness amongst their target audience.  There are a number of ways to do this, but one of the best ways to increase brand awareness is through sponsorship – specifically sponsorship in relation to charitable work and activities.

Brands have been involved with charities as part of their corporate social responsibility positioning for decades.  However, a recent occurrence that is increasing is linking brand support of charities through marketing campaigns and sponsorship activation.  Associating charitable support through sponsorship rights is an effective way to create an emotive response alongside the goodwill already built through their sponsorship activation.

But what are the reasons that drive a company to sponsor a charity? Although there are many reasons, here are our top 5:

1.  Increasing brand loyalty: sponsoring a charity is a business deal rather than a charitable donation. Companies choose to sponsor a charity in order to align their PR activity with a cause-related issue that enables them to build or increase their reputation amongst their target market.

2.  Brand differentiation: sponsoring a charity has the potential to differentiate their brand against other competitors who don’t support charities.

3.  Awareness and visibility: as charities typically rely on volunteers to run their business and have small marketing budgets, social media plays a vital role in their marketing strategy.  Brands who are involved with charitable work can typically work with the charities to utilise these social networks in order to promote their association providing a greater reach into a different audience.

4.  Highlighting corporate social responsibility: supporting a charity enhances a company’s credibility in a way that can spread a positive attitude amongst their audience and help them reach a new market.

5.  Client entertainment:  this can form a key part of a brands strategy, especially in regards to cultural or athletic events in which brands can activate their experiential marketing campaigns and/or meet with key individuals.