Sponsorship Vs Fundraising Which One is Right for Your Startup |
Posted: March 18, 2023 |
In today’s competitive socio-economic landscape commencing startups and making it successful is a daunting task. Here with an innovative business idea, imperative to consider several significant aspects for business like legal services for business and fund. Fund is the most important for the growth of the business. It is an undeniable fact that maximum business and startup collapse due to lack of fund. Some prominent sources to raise fund are sponsorship and fundraising. Sponsorship and fundraising are two effective business strategies to raise fund but their ways are different, therefore maximum people don’t know the fundamental difference between these two. This blog aims to shed light on fundamental difference between fundraising and sponsorship, their respective objectives, pros and cons. What is Fundraising?
Types of Fundraising: Fundraising Through Direct Mail: In this process, funds raised through direct mail sent to individuals and organizations. Fundraising Through Crowdfunding Website: In this process, funds raised through crowdfunding websites. Kickstarter, Indiegogo, Patron, etc. are some popular crowdfunding websites. Fundraising Through Events: In this process of fundraising, fund raised through different events like street theatre, galas, matches, charity, street play, etc. Fundraising Through Corporate Partnership: In this process of fundraising, corporate sectors donate to non-profit organization jointly in exchange for promotion or recognition. The Pros of Fundraising:
The Cons of Fundraising:
What is Sponsorship?
Types of Sponsorship: Event Sponsorship: In event sponsorship companies provide financial or in-kind support to an event, such as a concert, charity run, or sports tournament, in exchange for promotion or recognition. For example, Tata Group being the title sponsor for IPL 2023. Cause Related Sponsorship: In this type of sponsorship companies support a specific cause such as charity match in case of social issues or diseases, in exchange for promotion or recognition. Product Sponsorship: In this type of sponsorship companies provide financial or in-kind support to product, in exchange for promotion or recognition. The Pros of Sponsorship:
The Cons of Sponsorship:
Core Difference Between Sponsorship and FundraisingFundraising aims to raise funds or asking donation for specific purpose, while sponsorship is a marketing strategy where companies support any event, cause or product in exchange for promotion and recognition. Conclusion:Broadly, sponsorship and fundraising aim to secure funds and support for a cause. But in the context of objectives, benefits, and drawbacks; sponsorship and fundraising both are different. Startups who want to raise funds should carefully take the right step, according to their specific needs and goals. However, today there are so many online platforms, therefore easier for individuals and organizations to raise funds from anywhere in the world. Original Content Sources — https://www.globaljurix.com/blog/sponsorship-vs-fundraising-which-one-is-right-for-your-startup.php Read Also: Eight Golden Rules to Make Your Startup Successful in 2022
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