Fundraising and Sponsorship

Image from the Dwyer and McKay photograph collection of the Western Australian Museum History Department.

There are a range of income sources for museums, including entry fees and program charges, donations, grants and sponsorship. Fundraising can be achieved through philanthropic donations and corporate sponsorship. Partnering with businesses and corporations to encourage financial sponsorship is becoming an important component of museum fundraising, but this can raise some ethical issues.

Donations

Potential donors are often attracted by an initial interest in a museum’s collection and programs. It is not easy to ask someone directly for money. But keep in mind that the museum is inviting a donor to take an active interest and role in its development, which is exciting and worthwhile.

• The museum could make an outright public appeal for funds, outlining what the money is required for eg. new building, an exhibition, or acquisition of significant item/s.
• Once people who are willing to donate financially (and perhaps leave a bequest) to the museum have been identified, get to know them and keep them well informed of the museum’s activities. Keep them committed, interested and financially involved.
• Acknowledge, with their permission, the donor’s contribution. Recognition and showing appreciation are important aspects of the museum/donor relationship.

Sponsorship

Attracting corporate sponsorship can seem a daunting task for a small museum. Businesses are accustomed to approaches for funds from community organisations, but they often place a limit on the amount of funds they give, and the number of beneficiaries they support. The museum needs to find a way to stand out from the crowd. It also needs to find a partner that is compatible with its own aims and objectives.

• Sponsorship is essentially a partnership between the museum and a business or corporate entity. It is usually for a specific project.
• The museum’s audience are the marketing opportunity that attracts a potential sponsor.
• Businesses like to be seen as good corporate citizens. Sponsorship raises their profile and associates them with creativity and the prestige of history.

Plan the project

• Clearly identify the project, and the nature of a sponsor’s involvement
• Match the amount requested to the value of the benefits. Consider ‘in-kind’ support from smaller businesses

List the benefits to the sponsor

These could include:

• Exposure to sponsor’s target audience and promotional opportunities through access to them
• Naming rights to a project
• Inclusion in all advertising and publicity
• Prominence at museum openings and events
• Enhanced image through association with heritage organisations and the arts

Find the right match

• Do some research. Target businesses with a history of community involvement
• Develop a list of potential sponsors: Who does the museum do business with? Who have been supportive in the past? Look at local service clubs and tourist operators. Ask the local Chamber of Commerce
• Think about the potential connections between the project and the nature of the business. Eg Local printer may sponsor production of a catalogue

Making the pitch

• Approach the sponsor with a preliminary phone call
• Follow up with a written proposal (See Business Plan information sheet)
• Arrange a meeting to discuss details

Sponsorship agreement

• Once the proposal is accepted, draw up a written agreement that summarises the arrangements.
• Make clear the role and responsibilities of both parties.
• Outline the project and benefits to the sponsor.

Ethical considerations

The museum should be careful not to compromise its values or purpose in the quest for extra funds. Sponsors should not dictate or influence how a museum interprets its collection, or presents its exhibitions. Sponsorship is an indirect form of advertising, and the museum needs to manage this link between their activities and private commercial advantage.

References and further reading:

Museums Australia Inc (NSW). Museum Methods: a practical manual for managing small museums. Section 2.7 Sponsorship

Lauris Jephcott, ‘Museums and Money: A People Partnership’, Museum National, June 1992.

Australian Business Arts Foundation