The multi-billion dollar market of sponsorships and how to get involved

While we often explore types of sponsorships, it’s useful to look into what has actually been given, who is doing the giving, and how much is being given in New Zealand.
This can help businesses, trusts, and individuals understand how they might stack up.

Philanthropy NZ conduct research every four to five years into the ‘giving’ of New Zealanders, with the latest report from 2014 showing the cash giving to charities and community organisations. This report found that New Zealanders are estimated to have given a total of $2.788 billion in the year 2014-2015.

Of the nearly $2.8b given by kiwis in that year, 55% of giving came from individuals, 42% was given by trusts and foundations, and only 3% was given from businesses. Businesses seem to be lacking in terms of supporting charities and communities. It should be challenged to get more involved. Granted, large companies often set-up their own foundations and trusts for the purpose of supporting community and charitable organisations, but the majority of giving from businesses doesn’t fit this category. It could be and should be higher than 3%.

Forms of giving
So what are the types of giving that New Zealanders are doing?
This figure of $2.788b only calculates the cash given through sponsorships, donations, or partnerships, but this is only half of the total kiwis have given.

While typically we look at what has been provided in terms of money, there are other forms of giving that are still beneficial to those that need support. Individuals volunteering, and businesses giving in-kind, are examples of non-financial ways of giving. In-kind is calculated by hours given x the average wage.

Total giving.png

In-kind giving amounted for almost half of the total giving from kiwis in 2014.

The future
Since 2014, newer funding initiatives including crowd funding platforms such as Boosted, Pledge Me and Give a Little have grown significantly, and has begun to change how we give – both as individuals and businesses. This has altered how we contribute to charities and organisations including in supporting (often early stage) social enterprises. Together crowd funding in New Zealand has seen over $100m raised to date.

With more innovative ways to support and contribute being developed, I hope to see that 3% corporate contribution improve.

Noted at the Philanthropy New Zealand Summit in May 2017, ‘Corporate giving is getting stronger in New Zealand with a wide variety of approaches’. Although, compared with countries like Australia, our rates of giving are low. This creates room for growth, and provides a challenge for the business sector.


“Supporting communities is both the right thing to do and good for building brand and motivating staff.”

– James Walker, Countdown
 

These findings from the Philanthropy NZ Summit and Giving New Zealand report, show that businesses can benefit from being involved in sponsorship, whether that’s through motivating staff, inspiring other businesses, brand building, or a combination of all aspects.
 

So, how can businesses get involved?
Explore what your company values, look for community organisations that align with your values and look for how to add value, whether that’s through financial support, partnerships or in-kind skills transfer.

There’s not just one form of giving, and there’s more than one way of sponsoring. When you’ve explored your opportunities to sponsor, look into different models of sponsorship, and decide on the level of engagement you want to commit to.

If you are exploring opportunities to get involved with an organisation, and don’t quite understand how a sponsorship model could work for you, contact a consultant to guide you on the right path. They can help align you with a strategy and partner that fits with the values of your business.