Before approaching a corporation, put together a strong proposal. Whether you are seeking a grant, sponsorship, or donation, you need to have your proposal on paper, with plenty of backup materials prepared.

Begin the process by doing careful research to determine which companies might be interested in sponsoring activities such as those you are planning. See what kinds of fundraising the company's name has appeared with in the past. Determine how sponsoring you would help its image and customer base. Look for a good match.

Who Do You Know?

With the competition among so many nonprofits to raise money, it is very important to know the right people. The higher the person ranks in the company, the more influence he will have in spending the company's money on a cause.

Start by taking a look at your board of directors and committee members. Who do they work for? Nonprofit organizations may have a number of board members who are professionals in fields such as construction, development, economic consulting, or real estate law. They may work for companies (or even own a business) that are likely to be contributors, newsletter advertisers, or event sponsors. Always remember to provide your board members with the opportunity to get their business more involved with the projects and programs of your organization.

The CEO of a major Fortune 500 corporation may sit on the board of several nonprofits, having a very limited role in the activities of each. Unless she has a personal interest in a cause, it is unlikely she will have the time to commit to hands-on activities, which is why she will seek out a well-run and well-established nonprofit. If your board does not include corporate executives or you have not yet recruited any, you should speak with board members to determine whether they have any contacts.

Create an initial list of companies that may be interested in your cause based on the connections you have from board members and other members of your organization. Again, look for the best fits, but remember the old saying, “Beggars can't be choosers.” The reality is, the who-you-know factor is very significant in trying to make headway in the corporate realm. That said, it is prestigious to sit on a board, and there are corporate executives who seek these positions because they want to help solve problems in the community and meet like-minded people.

Be resourceful in your approach and try to think of a good reason why a company should partner with you. One popular strategy is to team up with a company for a special anniversary. Anniversaries are big deals to companies, and what better way to celebrate than to give back to the community in a meaningful way? Another approach is to partner with established chains opening a new unit in your region. It is not unusual for a fast food restaurant to donate proceeds to a local charity as a way of building relationships with the community. When you hear of retail or food chains establishing roots locally, get in touch with the manager about possible fundraising opportunities.

When you are dealing with a particularly large company, it is often in your best interest not to try to reach the CEO unless you have a direct contact. Instead, look for influential, up-and-coming executives whose decision to sponsor a good cause might help demonstrate to their superiors why they should continue to move up the corporate ladder.

Building Relationships

It may take a year to cultivate a relationship with the right person, but if he becomes a major donor, then it is worth it. Five major donors can bring in more money than several successful fundraising events, and at less cost and with fewer hours of volunteering. Of course, courting such high-end donors is difficult and requires face-to-face meetings. You need to build trust by demonstrating your organization is capable of doing what it sets out to do, and by meeting your goals.

Privately held companies are good places for nonprofits to seek supporters. It is easier to reach the CEO, and a privately held company will have fewer nonprofits approaching it. A successful individual in a privately owned company may be making $10 million a year and could easily become a major donor for your organization. You need to take the time and establish a relationship with such a company in your community. Time establishing and building relationships with top donors is well spent, since their contributions can be significant.

Giving Something Back

For more than three decades, Lincoln Center for the Performing Arts in New York has hosted its Mostly Mozart Festival. This four-week festival features the music of Mozart and his contemporaries, performed by well-known artists. Sponsorship benefits can include the opportunity to display products and offer samples. Other benefits can include credit in print and broadcast advertising as well as on collateral materials such as brochures. In addition, they can feature Lincoln Center's name in corporate advertising and enjoy additional perks, including personalized assistance in securing tickets for other Lincoln Center performances. Of course, Lincoln Center is a world-famous institution whose performances would be hard to match; however, the benefits of its sponsorship program serve as a good model for any organization seeking to attract quality sponsors.

Other nonprofits flourish from innovative powers of partnership. Take The Long Island Way. It is a New York–based organization, founded in 2007, that brings businesses and nonprofits together in mutually beneficial relationships. In five months, founder and CEO Donna Cariello signed thirty businesses to serve as member advocates for seventeen not-for-profit organizations. In exchange, member advocates enjoy enhanced visibility in the business and nonprofit community through networking events and free newsletter and online advertising opportunities.

Earning Money

No matter how the meeting with a major corporation is set up — through your own efforts or through contacts — be sure to learn as much as possible about the products or services it provides. This way, you can present what you can give back. There are more nonprofit organizations seeking funding than there are major corporations with funds to give. You have competition, and you need to make a strong case for why supporting your efforts is in the best interests of everyone involved in the equation. The more you know about the group, the easier it will be to find ways to show them the benefits they'll gain by supporting your organization.

Along with giving something in return, you may also consider methods of earning money. The proliferation of nonprofits has created a logjam. Some groups are not getting donations simply because they are the fifth nonprofit to seek out the same donors for the same cause. Tapping into your membership and determining the potential for a revenue-generating vehicle within your organization may help your group gain attention and differentiate itself from the competition. For example, hospitals and other nonprofit organizations often open thrift shops. Try to find a means of earning money that does not have a high cost factor on your end.