CH2M Hill receives more than 600 pitches per year from nonprofits nationwide asking for money.
The global engineering firm, based in Douglas County, writes checks to about 35 of those, mostly to groups that focus on education, engineering, the environment and diversity.
The company doled out $400,000 last year to Colorado nonprofits, some of which went for sponsorships of charitable events with very specific goals in mind: branding, networking for new business and even workforce development.
“We know we’ll run into important decision makers” at nonprofit events, said Patty Keck, manager of community relations for CH2M Hill. “Hopefully, we’ll be able to network.”
Nonprofits seeking money from corporate America are learning that pitching a worthy cause often isn’t enough. Donors are measuring effectiveness as they would any business deal.
“It’s an investment for the company,” said Colette Phillips, a communications consultant in Needham, Mass., who helps nonprofits broker corporate sponsorships. “An effective package is about the bottom line.”
Some of Colorado’s 17,000 nonprofits are in the spring charity event season, which precedes the summer charity golf season, which precedes the fall gala season with events such as Western Fantasy on Oct. 28, benefiting Volunteers of America.
“Companies are being more strategic,” said Jean Galloway, head of Denver-based consultancy the Galloway Group and co-founder with Sharon Magness Blake of Western Fantasy. “You look at the total picture of how you are using your philanthropic dollars.”
One of the biggest upcoming charitable events in Colorado is Concerts for Kids at Universal Lending Pavilion on June 17, benefiting Children’s Hospital and others. Sponsorships range up to $75,000, with ticket prices starting at $49.50.
Colorado companies such as TeleTech Holdings, Frontier Airlines and Sage Hospitality Resources have this year ponied up tens of thousands of dollars to have their names, logos and executives featured at the event.
Such sponsorships are a form of so-called cause-related marketing. It can differ from corporate philanthropy in one key way: If the money donated is not an outright gift – but given in exchange for a benefit – at least a portion is not tax-deductible. The same thing holds true in purchasing tickets to some charitable events.
A potential snag for corporate sponsors is if a nonprofit comes under fire for fraudulent and unethical behavior.
“Those negative associations go back to the company,” said Donald Lichtenstein, a professor at CU-Boulder’s Leeds School of Business who has studied corporate giving. Likewise, he said, a nonprofit’s reputation can be tainted by association if a sponsor is linked to a scandal.
One way to research nonprofits is through websites like www.guidestar.org or www.charitynavigator.org. Both websites rate nonprofits based on financial documents.
Keck of CH2M Hill said that by sponsoring charity events, the company makes better connections with community and business leaders than it would by plastering the company’s name on a billboard or buying naming rights for a sports venue. She said the company selects nonprofits and charity events that focus on engineering or science, a strategy that “helps build our future workforce.”
CH2M Hill donated $10,000 for a sponsorship package for a charity event, held in March, for the Denver School of Science and Technology. The school’s primary mission is to educate minority and low-income high school students.
“It’s huge, especially for a charter school like ours,” said Denise Hudson, development director for the school, which opened in 2004. “These companies have a vested interest in our success.”
About half of the $300,000 raised at the event came from corporate sponsors, including $50,000 from Forest City Enterprises. Cleveland-based Forest City is the real estate developer behind the 7.5-square-mile Stapleton project, where the school is located.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com
Tips for groups in charitable sponsorships, from consultant Colette Phillips of Needham, Mass.
For nonprofits:
Find the right fit. A company is more likely to support a fundraiser if the nonprofit or event overlaps with the company itself. For example, a sports shoe company is more likely to sponsor a charity road race that benefits heart disease research; a telecommunications company is a longer bet.
Be innovative. Find a way to make your event stand out. Ask yourself, “What does our event offer that no other sponsorship opportunity offers?”
A second serving. If a company already made a donation and the partnership is working, ask for a second donation.
For companies:
Demand exclusivity. If a company is willing to pony up thousands of dollars to sponsor an event, make sure a competitor isn’t also featured.
Long-term approach. Structure donations over several years to build continuity and brand awareness.
Measure effectiveness. Just like a business measures its return on investment, a company must evaluate how well the nonprofit is spending the money. Craft some guidelines up front to evaluate the partnership.
