Non-profit organizations and private businesses have a common goal - each have a vested interest in maintaining a steady flow of revenue.

Non-profit organizations rely on the generosity of "others" to meet their financial needs. Grants, individual donations, planned giving or fundraising events are a few methods non-profits employ to raise funds. Businesses use publicity such as word-of-mouth, media, or paid advertising to increase their bottom line. How can these two sectors that seem to be on opposite sides of the spectrum, at least in financial gain, help each other? The answer lies in examining the benefits fundraising events provide both non-profits and private businesses.

Holding fundraising events is one cost-effective way non-profits generate funds. In addition to focusing on selling tickets during fundraising events, non-profits also work with local and national businesses to provide additional financial support - in the form of sponsorship. This combined approach maximizes the value of the dollar spent, when factoring in not only the costs, but also the time and energy put into to creating a quality event. Getting sponsors can help an event break-even and are almost always necessary to raise any money at all.

Small businesses eyeing to nab a piece of their competitor's pie, or large businesses looking to sustain or expand into a new market can look to the non-profit sector as a marketing opportunity. How? By sponsoring fundraising events.

Why sponsor special events? There are several reasons. Special events are a marketing opportunity and can provide:

Exposure to a Select Audience - Special events attract a specific demographic such as young, middle class, working professionals, women, etc. depending on the nature of the event. It is a great opportunity for businesses to market their products or services to a targeted audience.

Community Goodwill - Positive community events reflect well on businesses and help show the public that they are concerned about the community they do business in and support important social causes.

Affinity or Empathy for a Cause - More and more businesses understand that being a good corporate citizen is more than writing a check to a charity. It includes involvement of employees as volunteers, participating as individuals and teams, and perhaps lending business expertise to small non-profit organizations.

Tax Benefits - Business can claim deductions for sponsorship if the non-profit organization is recognized by the IRS as a tax-exempt entity under Section 501(c)(3) of the tax code. Another option is to consider monies given for sponsorship as advertisement expenses, which can be a tax write-off. (A tax professional should be consulted to determine the best course of action.)

Publicity - Non-profit organizations offer personalized benefits to businesses in return for sponsorship. Typical benefits includes: Logo or name identification on promotional materials such as press releases, marketing flyers, and advertising of the event; Opportunity for businesses to promote their own products and/or services at the event such a distributing sample products or set-up display booths.

Fundraising events give businesses and non-profit organizations an opportunity to form a symbiotic relationship. It offers non-profits a source of funding while bringing awareness to the organization's mission. Businesses benefit financially, in visibility and in public image while supporting community causes. Together, both sectors offer a powerful way to mitigate social issues. It is a win-win situation for businesses and organizations, where the common goal is to facilitate improvements within the community - both locally and internationally.

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