For many nonprofits and events, sponsorship revenue is a key pillar of funding. But too often, organizations fall into the trap of believing that the best long-term strategy is to simply increase sponsorship prices by a certain percentage each year. It’s a tempting approach—it feels safe, predictable, and easy to explain to sponsors.

But here’s the problem: incremental increases alone won’t create sustainable sponsorship growth. In fact, sticking to this method can actually hold your organization back. Sponsors’ needs change, marketing strategies evolve, and if your sponsorship program isn’t adapting, you risk stagnation—or worse, losing sponsors altogether.

The Problem with Incremental Sponsorship Increases 

Many organizations assume that adding a small percentage to sponsorship pricing each year is the responsible way to scale. It seems logical—expenses rise, your audience grows, and sponsors should expect to pay more over time, right?

The reality is, this mindset creates three major issues:

1. It assumes past value equals future value. 

What sponsors paid last year was based on a specific set of benefits and market conditions. Simply increasing that price doesn’t guarantee the sponsorship is still worth it.

 2. It limits your organization’s potential. 

If you rely solely on incremental increases, you might overlook much larger opportunities to restructure and add value in ways that can significantly boost revenue.

3. It doesn’t account for sponsors’ evolving needs. 

Sponsors aren’t just looking to renew—they want ROI. If their marketing priorities shift but your sponsorship offerings don’t, they’ll eventually look elsewhere.

If you want to grow your sponsorship revenue in a meaningful way, you need a strategy—not just a percentage increase.

The Stagnant Sponsorship Approach 

A mid-sized nonprofit event had a long-standing sponsorship program. Each year, they increased their sponsorship pricing by 5-10%, assuming this was a steady and sustainable way to grow revenue.

At first, sponsors accepted the increases. But over time, sponsors started to push back, asking for more customization or questioning whether the event was delivering enough value. Some sponsors dropped out, and the nonprofit struggled to replace them.

Why? Because their sponsorship program had remained largely the same, while sponsors’ marketing strategies had changed. The nonprofit focused on incremental price hikes rather than evolving their offerings, ultimately capping their growth potential.

Restructure Sponsorships and Increase Revenue 

Instead of just raising prices slightly each year, take a step back and reimagine your sponsorship strategy.

✅ Survey past and potential sponsors to understand what they truly value.

✅ Eliminate outdated sponsorship tiers that aren't producing engagement.

✅ Introduce new, high-value opportunities, like digital sponsorships and year-round branding benefits.

✅ Package sponsorships based on outcomes rather than arbitrary pricing tiers.

The result? Organizations can double their sponsorship revenue within a couple years by following this approach—not by adding small increases, but by adapting to create more valuable and attractive sponsorship opportunities.

This kind of growth isn’t luck—it’s strategy.

How to Break Out of the 10% Trap and Scale Sponsorships 

If you want to move beyond incremental increases and truly grow your sponsorship revenue, focus on these key areas:

🚀 Reevaluate your sponsorship assets. What do sponsors actually want? What outdated benefits could be replaced with high-impact opportunities?

📈 Move beyond static pricing tiers. Instead of just increasing costs, structure packages around measurable outcomes that align with sponsors’ goals.

🔄 Keep evolving. The sponsorship landscape changes. A sponsorship program that worked five years ago may not work today. Continuous innovation is key.

The best sponsorship programs don’t grow because of automatic price hikes—they grow because they deliver value that sponsors can’t ignore.

Want to Avoid Costly Sponsorship Mistakes? 

If you’re ready to stop relying on incremental increases and start growing sponsorship revenue with strategy, download our free eBook: Sponsorship Package Pitfalls. 

This short guide outlines four common mistakes that could be limiting your sponsorship success—and how to fix them.

📥 Download the eBook Now and start building a stronger, more profitable sponsorship program today!