Let’s discuss how Rotary clubs and districts can leverage corporate support through local sponsorship and cause marketing. Learn about different types of cause marketing campaigns and how to package and price sponsorships. You’ll also gain insight into what potential sponsors are looking for, and understand Rotary’s guidelines on brand usage as well as legal and financial considerations.

1. Sponsorship and
Cause Marketing
at the Local Level
Angela Baluk
Wendy Schultz

2. Introductions
Angela Baluk
Corporate Counsel | Intellectual Property
Rotary International World Headquarters
Wendy Schultz
Sponsorship and Cause Marketing | Partnerships
Rotary International World Headquarters

3. Poll: Which Country Are You From?

4. Agenda
• Agenda and overview of session
• Philanthropy vs. marketing-based relationships
• Sponsorship & Cause Marketing in Action
• Trends in philanthropy, sponsorship and cause marketing
• Creating a sponsorship platform
• Types of cause marketing campaigns
• Regulations and best practices
• The Rotary Brand
• Resources
Global Information United States
Flags indicate country-specific information
United Kingdom

5. Philanthropy vs.
Marketing-based
Relationships

6. Philanthropy (Definition)
Merriam-Webster
1. goodwill to fellow members of the human race; especially, active effort to
promote human welfare
2 a. an act or gift done or made for humanitarian purposes
b. an organization distributing or supported by funds set aside for
humanitarian purpose
Oxford English Dictionary
The desire to promote the welfare of others, expressed especially by the
generous donation of money to good causes.
Cause Marketing Terminology: A Field Guide (For Momentum)
Support for a nonprofit charity where no commercial advantage is
expected.

7. Philanthropy
Individual Philanthropy
• Individual Gifts
• Events
• Annual Appeals (Direct
Mail/Email)
• Online/Mobile
• Text to Give
• Monthly/Recurring
• Peer-to-Peer
• Major Gifts
• Principle Gifts
• Planned Gifts
• Endowments
• Capital Gifts
Foundation Giving
• Private Foundation
• Corporate Foundation
• Family Foundation
• Community Foundation
• Public Foundation
(public charity)
• Donor-advised Funds
Corporate Philanthropy
(Corporate Foundation/
Corporate Giving Department)
• Grants
• Community Grants
• Volunteer Grants
• Employee Giving/Automatic
Deductions
• Matching Gifts
• Capital Gifts
• Employee fundraising
campaigns
• In-Kind Gifts
Individual Philanthropy Institutional Philanthropy

8. Why Do Companies Give to Charities?
• Build brand awareness
• Appear as good corporate citizen
• Gain respect
• Enhance their reputation in the community
• Improve the community
• Address social issues
• Provide employee engagement opportunities
• Team building
• Employee retention
• Public relations opportunities
• Networking opportunities
• Tax benefits
• Align with CSR strategy
• Build good will
• Ability to recruit better employees
• Improve bottom line

9. Marketing-based relationships
Sponsorship: a cash and/or in-kind fee paid to a property (typically in
sports, arts, entertainment or causes) in return for access to the exploitable
commercial potential associated with that property.”
Source: IEG
Cause Marketing: Cause marketing (also sometimes known as cause
alliance, cause branding, cause partnership, strategic philanthropy) is a
business relationship in which a corporation and a nonprofit form a
partnership that results in increased business for the corporation and
a financial or marketing return for the nonprofit.
Source: For Momentum

10. Corporate Social Responsibility (CSR)
Corporate Social Responsibility: is a management concept whereby
companies integrate social and environmental concerns in their business
operations and interactions with their stakeholders.
CSR is generally understood as being the way through which a company
achieves a balance of economic, environmental, and social imperatives
(“Triple-Bottom-Line- Approach”), while at the same time addressing the
expectations of shareholders and stakeholders.
It is important to draw a distinction between CSR, which can be a strategic
business management concept, and sponsorships and cause marketing,
which are marketing-based relationships, and charity or philanthropy.
Sponsorships, cause marketing, and philanthropy can enhance the
reputation of a company, strengthen its brand, and be part of its CSR
strategy, but the concept of CSR clearly goes beyond that.
Source: United Nations Industrial Development Organization

11. Sponsorship & Cause
Marketing in Action

12. Sponsorship Example: Coke

13. Sponsorship Example: Coke

14. Cause Marketing Example: Coke

15. Sponsorship & Cause Marketing
Procter & Gamble (P&G)

16. Sponsorship & Cause Marketing
Procter & Gamble (P&G)

17. Sponsorship & Cause Marketing
Procter & Gamble (P&G) - Pampers

18. Trends and Statistics

19. Corporate Giving Around the World
Percentage of Companies
Donating Money to Community Causes or Charities
(Top 10 Countries)
Source: Grant Thornton International Business Report 2014
South Africa
95%
United States
93%
Canada
92%
Germany
89%%
Ireland
82%
UK
80%
Greece
78%
New Zealand
77%
Nigeria
74%
Malaysia
68%

20. Corporate Giving Activity across 30 Rotary countries
Source: Think 2015 World Giving Report
TOP 30 COUNTRY (by
giving rank)
HIGH MEDIUM LOW
United States
Japan
India
Korea, Republic of
Taiwan
Canada
Germany
Italy
Australia
Brazil
England
Philippines
Mexico
Nigeria
Thailand
TOP 30 COUNTRY (by
giving rank)
HIGH MEDIUM LOW
Switzerland
New Zealand
Netherlands
Sweden
Argentina
Nepal
Singapore
Turkey
Kenya
Malaysia
Indonesia
South Africa
Uganda
Guatemala
Corporate Giving Around the World

21. Charitable Giving in the US (2015)
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
Corporate Giving Corporate
Sponsorship
Bequests Foundations Individual Giving
USDollarsinBillons
$264.58
$58.46
$31.76
$18.45
Source: Giving USA’s Annual Report on Philanthropy, 2016
$21.4

22. Voluntary Sector Income in the UK
(2013/14)
Source: NCVO, UK Civil Society Almanac 2016
$0.00
$1,000.00
$2,000.00
$3,000.00
$4,000.00
$5,000.00
$6,000.00
$7,000.00
$8,000.00
$9,000.00
$10,000.00
National Lottery Private Sector Government Voluntary
Sector
Individual Giving
BritishPoundinBillions
9,379.5
2,881.22,825.5
1017.2
488.7

23. Charitable Giving in Australia (2015/16)
Source: Giving Australia 2016
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
Trusts and
Foundations
Non-Commercial
Sponsorship
Individual Giving Corporate Giving
AustralianDollarsinBillions
$13.9
$12.5
$3.6
$600 Million

24. Global Sponsorship Spending
Source: What Sponsors Want and Where Dollars Will Go in 2017; IEG, 2016
$48.00
$50.00
$52.00
$54.00
$56.00
$58.00
$60.00
$62.00
$64.00
2013 2014 2015 2016 2017
$53.10
$55.30
$57.50
$60.10
$62.80
USDollarsinBillions
Projected

25. Global Sponsorship Spending
Source: What Sponsors Want and Where Dollars Will Go in 2017; IEG, 2016
Region 2015 Spending 2016 Spending 2017 Spending
(projected)
Europe $15.3 billion $16 billion $16.7 billion
Asia Pacific $14 billion $14.8 billion $15.7 billion
Central/South America $4.3 billion $4.4 billion $4.5 billion
North America $21.4 billion $22.3 billion $23.2 billion
All Other Countries $2.5 billion $2.6 billion $2.7 billion

26. Sponsorship Spending
Source: What Sponsors Want and Where Dollars Will Go in 2017; IEG, 2016
Sports
70%
Entertainment
10%
Causes
9%
Arts
4%
Festivals, Fairs &
Annual Events
4%
Associations &
Membership
Organizations
3%
Projected 2017 Shares of North American Sponsorship Market

27. Cause: Doing Well by Doing Good
Global Consumer trends:
• 90% are likely to switch brands to one associated with a good cause, given
comparable price and quality.
• 93% have a more positive image;
• 90% are more likely to trust;
• 88% are more loyal to companies that support social and environmental
issues.
Global consumers consider a company’s CSR commitments when:
• deciding which companies they want doing business in their communities
(84%)
• deciding where to seek employment (79%)
• considering where to invest (67%)
Source: 2015 Cone Communications/Ebiquity Global CSR Study

28. Good for the Cause!
are more likely to donate to the cause
are more likely to volunteer for the cause
are more likely to participate in an event for the
nonprofit
feel more positively about the cause
76%
72%
49%
56%
As a result of nonprofit partnerships with corporations people trust, consumers:
Source: 2015 Cone Communications/Ebiquity Global CSR Study
2010 Cone Nonprofit Marketing Trend Tracker

29. Creating Your
Sponsorship Program

30. Creating Your Sponsorship Program
Steps to create your sponsorship program:
• Identify sponsorable inventory
• Identify assets and benefits
• Pricing:
• Estimate the fair market value of those assets
• Evaluate your intangibles and price adjustors
• Combine to create sponsorship packages

31. Step 1: Catalog Inventory
Inventory: Activities and events that the Rotary Club has that
companies might want to sponsor:
• Events – fundraising events, dinners and galas, golf tournaments,
service days and community days, health fairs, speaking series,
conferences, festivals, seminars, business networking events,
5K/10K races, etc.
• Scholarships
• Community Projects and Programs – river or park clean-up,
landmark restorations, playground builds, tree planting, blood
drives, award programs, mentoring programs, senior programs,
literacy initiatives, etc.

32. Step 2: Identify Assets and Benefits
Assets/Benefits: Elements that are of worth to a sponsor that can provide
recognition, visibility and/or value to the sponsor
• Measured Media:
• TV advertising or event broadcast
• Outdoor advertising (billboards, bus benches, taxis, etc.)
• Print advertising (newspaper, magazine)
• Radio advertising
• Digital advertising*
• Non-measured Media:
• Printed materials (posters)
• Banners and other on-site
• Merchandise/Wearables
• Program books and programs, agendas
• Event materials – tickets
• Website/social media
• Public address announcements
• Stage recognition
• Stage visuals
• Give-aways/sampling
• Newsletters/Emails**

33. Step 2: Identify Assets and Benefits
• Activation opportunities: ways in which a sponsor can actively
promote their sponsorship beyond receiving just logo recognition
• Goody bags
• Booth/exhibit space
• Speaking or presenting opportunities
• PR/Media opportunities
• Promotional extensions
• Digital activation
• Hospitality and Others
• Tickets to events
• VIP tickets
• Networking opportunities
• Meet-n-greets
• Merchandise

34. Step 3: Pricing
Because sponsorship is a marketing-based relationship, sponsors
will evaluate the sponsorship on its value. Therefore, you need to
be able to determine Fair Market Value (FMV) for the assets
and benefits you are providing.
Fair Market Value ≠ Return on Investment (ROI)
Fair Market Value ≠ Cost
However, you will discover that there are numerous price
adjustors and other intangibles, as well as market
considerations, that can affect the final sponsorship rights fee
that you can command.

35. Pricing: Estimate Fair Market Value
(FMV)
FMV Measured Media:
• Sponsor ID (logo or text) = 5-10% of rate card
• Messaging = 25-75% of rate card
• Ad in audited media = 100% of rate card
FMV Non-measured Media:
• ID in Non-Measured Media like signage, PA, website, collateral material):
USD $.0025 – USD $.10 per
• Database Access and Mailing Lists (US Mail, Email, Insert in mail):
USD $.075 – USD $.15 per name
Sampling:
• Insert in Goody Bags - ~ USD $.04
• Face-face sampling - ~ USD $.15 – USD $.25
Tickets and Hospitality – Face Value
Source: IEG

36. Pricing: Evaluate Intangibles and Price
Adjustors
• Size of sponsor’s promotional
commitment
• Size of sponsor’s fundraising
commitment
• Multi-year contract discount
• Cost to sponsor other properties
in same market(s)
• Cost to sponsor comparable
properties in other markets
• Cost to buy measured media in
property’s market(s)
• On-site sales rights
• Pass-through rights
• Prestige: Sponsored event or activity
• Brand Awareness Integrity – Rotary
Brand
• Audience loyalty and/or interest
• Category exclusivity
• Ambush protection
• Clutter management
• Ability to activate
• Networking opportunities
• Media coverage
• Track record
• Geographic reach
These are variables which could impact your final sponsorship rights fee:

37. Types of Cause Marketing
Campaigns

38. Types of Cause Marketing Campaigns
• Transactional Campaigns
• Commercial Co-Ventures (CCVs)
• Digital Campaigns
• Message-focused Campaigns
• Checkout Campaigns
• Employee Engagement Campaigns
• Event Marketing
• Signature Campaigns

39. Types of Cause Marketing Campaigns
Transactional Campaigns:
A corporate advertising or marketing campaign in which a
company makes a contribution to a charity based on a
consumer action. This action can be a consumer purchase
(Commercial Co-Venture), a digital activity such as “liking” the
company’s Facebook page (Digital Campaign), or some other activity
such as donating old clothes or recycling.

40. Types of Cause Marketing Campaigns
Commercial Co-Venture (CCV)*:
Sometimes called “portion of purchase”; a type of Transactional
Campaign in which a consumer purchase triggers a
contribution to a charity. Sales may be tracked at point of purchase
or may require some type of post-purchase consumer activity, such
as entering a product code from the product on-line.
*These types of campaigns are highly regulated in the United States
and certain other countries.

41. Types of Cause Marketing Campaigns
Digital Campaign:
A type of Transactional Campaign which uses digital platforms such
as website and microsites, mobile apps and texting, and social media
platforms to generate corporate contributions, encourage consumer
donations and/or other online activities.

42. Types of Cause Marketing Campaigns
Message Focused Campaign:
Can take many formats but focuses on utilizing business resources to
share a specific cause-focused message, usually tied to a specific
charity.

43. Types of Cause Marketing Campaigns
Checkout Campaign:
Retailers (both brick-and-mortar and online) provide the
opportunity for customers to donate to a charity as they are
checking out. These can also be positioned as a “round up” by asking
customers if they want to “round up” their purchase amount to a
whole dollar amount. For years many campaigns used paper icons or
pin-ups to showcase customers’ support. When a customer made a
donation they wrote their name on the pin-up and it was displayed
behind the register with all of the other pin-ups. These may include
coupons or other consumer incentives as well.

44. Types of Cause Marketing Campaigns
Employee Engagement Campaigns:
A company can leverage its workforce for social good. This can range
from employees supporting a point-of-sale campaign at the register,
to peer-to-peer fundraising for a walk or endurance event, to
volunteer programs that take employees out of the workplace and
put them to work on a community project.

45. Types of Cause Marketing Campaigns
Event Marketing/Cause Overlay of Sponsorship:
Promotional strategy linking a company to an event sponsorship.
Provides an opportunity to leverage the benefits of a sponsorship of a
nonprofit event like a fundraising walk or gala with a cause overlay
extending the reach of the sponsorship and often raising additional
funds for the nonprofit through the company’s customers.

46. Types of Cause Marketing Campaigns
Signature Campaign:
Many nonprofits will develop their own Signature Campaign, a
branded annual fundraising initiative with multi-partner potential.
In this case, the charity owns the campaign branding, and numerous
companies can participate.

47. Types of Cause Marketing Campaigns
Campaign Types Rotary Club/District Rotary International
Transactional Campaign Yes Yes
- Commercial Co-Venture (CCV) Yes
- Digital Campaigns Yes Yes
Message-focused campaigns Yes Yes
Checkout Campaigns YES Yes
Employee Engagement Campaigns Yes Yes
Event Marketing Yes Yes
Signature Campaigns Yes

48. Regulations, Legal
Considerations, Tax
Considerations

49. Rotary International
Rotary International The Rotary Foundation
501(c)4 501(c)3
Contributions are not tax-deductible Contributions are tax-deductible
Not registered for fundraising in U.S. at
this time
Registered as a charitable fundraising
organization in all required states in
U.S.
Owns all the Rotary marks and logos
Owns International Convention and
World Polio Day
Owns benefits included in contracts
such as advertising in The Rotarian,
registrations for the Convention, etc.

50. Charitable Registration
In the United States, most states have “charitable solicitation
statutes” that require charities (501’s) to register with the state
before they solicit the state’s residents for contributions. This may
include sponsorships and grants in some states.
For clubs operating as a 501(c)4 with a foundation or other
associated 501(c)3, you will want to ensure compliance with all
applicable regulations and statutes.
Some other countries have regulations as well. You may need to
consult legal or accounting professionals.

51. Commercial Co-Venture (CCV) Regulations
Over 30 states have consumer protection laws governing commercial
co-ventures. Six states have registration requirements, and two
states have bonding requirements. Many states have contractual,
recordkeeping, and advertising requirements.
Additionally, the IRS may get involved to determine if a charity’s
involvement in the CCV has triggered UBIT (unrelated business
income tax).

52. Unrelated Business Income Tax (UBIT)
UBIT Basics:
General Rule
Exception
Organization recognized as exempt
does not pay income tax on income
received by organization
If the income received is unrelated
business income (UBI or UBTI), it
is subject to taxation. Organization
must report and pay tax at corporate
rate

53. Unrelated Business Income Tax (UBIT)
Is the Income Taxable?
Unrelated Business Income Tax (UBIT)
• Is it a trade or business?
• It is regularly carried on?
• Is it not substantially related to the exempt
purpose of the organization?
Income from sponsorship/cause that
could be considered UBIT:
• Advertising Income
Income that is normally an exception
to UBIT:
• Sponsorship Income
• Licensing Income
• Royalty Income
• Convention & Trade Show Revenue

54. Best Practice:
Advertising vs. Acknowledgement
Acknowledgement:
• Use or acknowledgement of the name or logo (or product lines) of
the sponsor’s business
• Can include taglines (Nike – Just Do It.)• Can
• Listing sponsor’s location, telephone number, and/or internet
address (can include hyperlink – avoid sales page)
• Product displays (whether for sale or free)
• Product Sampling
Advertising
• Qualitative statements (“Sponsor X product is the best!”)
• Comparative statements (“Sponsor X is 5 times faster!”)
• Price information
• Indications of savings or value (“Is on sale for $10.99 this week”)
• Endorsements
• Inducements to purchase (“Visit our sponsor today”)

55. Best Practice: Transparency
Better Business Bureau Standard 19
Clearly disclose how the charity benefits from the cause marketing campaign.
Such promotions should disclose:
• the actual or anticipated portion of the purchase price or amount given per
action that will benefit the charity (e.g., $1 will be donated to Make-A-Wish for
every letter to Santa);
• the duration of the campaign (e.g., the month of October, through 31
October); and
• any maximum or guaranteed minimum contribution amount (e.g., up to a
maximum of $200,000).

56. Best Practice: Transparency
New York Attorney General Best Practices
Specifically, the Best Practices call for the following to be disclosed:
• the specific dollar amount per purchase/action that will go to the charity;
• the name of the charity;
• the charitable mission if not readily apparent from the name of the charity;
• whether consumer action is required for the charitable donation to be made;
and
• the start and end dates of the campaigns.
Social media cause-marketing programs should disclose, at a minimum:
• the amount donated per action;
• the name of the charity that is benefitting;
• the dates of the campaign; and
• the minimum and maximum to be donated.

57. The Rotary Brand

58. Rotary Brand

59. Rotary Brand

60. Rotary Brand
Rotary Club Signature
Rotary District Signature
Rotary Zone Signature

61. Rotary Brand
Rotary Partner: Strategic, Project, or Service
Rotary Centers for Peace
Rotary Sponsor

62. Use of Rotary Marks
• When naming events or projects, use your Rotary club
(district/zone) name and not “Rotary” alone
• Consult Tell Rotary’s Story – Voice and Visual Identity Guidelines
available on the Brand Center
• Visit brandcenter.rotary.org to create your club logo
• Before creating co-branded materials/merchandise, obtain
permission from:
• Sponsor/Partner, plus
• Rotary International – only licensed vendors or companies with
permission from RI may reproduce Rotary Marks.

63. Use of Rotary Marks

64. Guidelines
For Rotary Clubs, Rotary Districts, and Other Rotary Entities
for Interacting with Other Organizations
Rotary Code of Policies, Section 44.020
18. Any use of the Rotary Marks in combination with the name or logo of another
organization should:
A. Be consistent with Rotary’s values and local cultural norms
B. Be in accord with the Object of Rotary, and
C. Enhance Rotary’s public image and reputation

65. Questions?

66. Rate this session in the
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