Navigating Partnerships in Rough Economic Seas: Lessons from Seattle Theatre Group

Partnerships have long been an integral part of
 Seattle Theatre Group’s business model. 
And they maneuver them well, even in the face
of the rough seas currently facing most non-profit
organizations.  A presenting arts organization
boasting well over 350 annual shows ranging
from Broadway hits to rock bands, Seattle Theatre Group (STG) has an annual development budget of approximately $2 million.

The development team at STG has to remind many consumers and stakeholders of their non-profit status, unlike many other non-profit organizations.  “We’ve found that recently, the emphasis in corporate and personal giving has shifted heavily toward non-profit organizations that focus on basic needs, like poverty and homelessness, which is absolutely understandable,” comments Danielle Olson, Director of Corporate Relations with STG. “As a result, we’ve had to think outside the box and deliver extra value just to maintain our existing level of sponsorships to keep our programs supported.”

With partnerships like BMW, Heineken, Jones Soda and BECU, STG is well versed in what it takes to recruit and maintain high-level partnerships.

After my discussion with Danielle, here’s my take on the partnership lessons we can all learn from STG.  These strategies are applicable to non-profit organizations of any size:

1)    Don’t Compromise Who You Are. Even navigating the seas of a rough economic climate, STG’s development team keeps the bar high for which sponsor messages reach their constituents.  Olson explains, “When a sponsor is able to put together a special package for our patrons and it offers real value, we’ll include it in our existing communications.  But we’re not just going to throw a bunch of advertisements out to make a few extra dollars.  You won’t see banner ads cluttering up our website.”

2)    Know Your Customers. “While we see some crossover, the Broadway patron is probably going to represent a different demographic than someone who attends a rock show,” explains Olson.  “We have so many different constituent segments that sponsors may be trying to target.” STG’s mindset of ‘What’s in it for the sponsor?’ is critical.

By understanding their different audience demographics, STG is better able to craft a compelling proposal for potential sponsors.  They realize that, although the sponsor may “support the arts”, that sponsor also needs to communicate with their existing and potential customers.  STG recognizes and caters to sponsor needs.

While this may seem obvious, far too often non-profit organizations rely on the “support the cause” approach to recruiting sponsors and partners and forget to consider how this opportunity may assist that sponsor in meeting their marketing and communication goals.

3)    It’s About Value.  “Sponsors today are looking for much more than a logo display,” advises Olson.  STG staff takes the time to understand sponsor needs then designs an appropriate sponsorship package that utilizes all available options.  The results may be cash donations or even trade agreements where sponsors provide their products or services for free in exchange for visibility, events or ticket packages.

4)    The Best Team Player Wins. One of the most impressive angles that STG takes with sponsors or partners is helping an STG sponsor support another non-profit organization.  Again, going back to the lesson of knowing sponsor needs, STG is keenly aware of what other non-profit organizations their sponsors support.  Often STG proposals include tickets to shows or facility rentals.

Olson describes, “We tell sponsors they can mark-up our tickets to use at a fundraising raffle to benefit another non-profit organization or suggest they use one of STG’s theatres to host a fundraising event.”  STG’s willingness to leverage their own resources in support of other non-profit organizations truly demonstrates their commitment both to their sponsors and to the Seattle community at large.

Olson summarizes by explaining, “The way we look at it, the organizations that can be scrappy and flexible will not only survive in today’s economy, but will find themselves in a much better position when the economy does turn back around.  If we’re able to help a sponsor help another non-profit organization, that’s a win-win-win for us.”

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