When you hang out your business shingle, it won’t be very long until some worthy cause comes knocking on your door for sponsorship dollars. Whether it’s the local baseball team, a charity auction, or a health-related issue, how can you measure whether it will do anything to boost your business?  Most sponsorship opportunities offer to “put your logo on a sign” or thank you in an advertisement… but are those really valuable?

Here are five key questions to ask yourself before you commit to the project:

1)  Does it boost your business equity?

For example, does it give your business any additional credibility in the market you’re in? It’s why Canadian Tire focuses so heavily on hockey sponsorship.  Canadian Tire is the Number 1 hockey retailer in the world.  Red Bull focuses heavily on adrenaline adventures – events they create and manage to bring like-minded consumers together.  What are you known for?

2) Does it speak to your target audience?

If you’re a women’s clothing store, focusing on women’s health issues makes sense.  If you’re a book store, literacy issues make sense.  If you can been noted for ‘giving back’ to your target audience, the sponsorship will provide measurable results.

3)  Do you have a compelling story to tell?

Do you have a personal connection to the charity?  Can you tell a story of why your business is involved in the cause?  If you have a story, you can leverage it into a meaningful sponsorship and your customers will see a broader perspective of you and your business.

4)  Can you engage your stakeholders?

Is there a way your customers or clients can participate in the cause?  Can they rally around your support and build a community effort around the project/race/event?

5)  Can you leverage your assets?

Can you provide something valuable to the cause that directly relates to your business? Can you supply equipment? Advice? Services?   If you can be active in your participation, rather than just supply a cash donation, your business is likely to be measured by your contribution.

If you’ve answered yes to any one of the above, it is probably worth proceeding further.  But what if you answer “no” to all of these questions.  Does it mean you shouldn’t say yes to the sponsorship?  Perhaps not.  But if that’s the case, it might be better to call it a donation – and have no expectation of anything more than a logo on a sign.