For a non-profit organisation to be successful, it needs to have a team of passionate people and, most importantly, be smart enough to come up with cost-effective strategic decisions. One aspect in this regard is forming corporate partnerships. While charity organisations fundamentally do not make gains from any sales or services provided, that does not mean they should not associate themselves with white-collar or other types of corporations that make significant profits in their respective sector. This is because, at the end of the day, as far as non-profits are concerned, they need financial assistance to succeed in their projects and operations. But that is not all a charity organisation can gain from such partnerships. This article will comprehensively detail the advantages of entering into a corporate partnership and guide charity organisations on how they can effectively be formed.
What Does it Mean to form a Corporate Partnership?
As the term ‘partnership’ indicates, a relationship between a for-profit and non-profit organisation has more long-term effects. It can, however, be a partnership for a shorter duration. For example, a charity organisation may approach a corporate business to partner for a specific project. Hence, a corporate partnership can occur in multiple ways. Whether by donating products or offering a one-time grant to conduct adequate research, a non-profit would have entered into a corporate partnership in each situation.
A corporate partnership is mutually beneficial for both parties, with the for-profit company being able to meet its business goals by supporting the valuable work done by a charity organisation. This would also significantly help a business to boost its reputation by gaining positive publicity and, depending on the jurisdiction, be subject to certain tax deductions.
How Corporates Can Help Non-Profits
There are multiple ways a corporation can help non-profits. Here are some of the most common benefits:
Assisting in Finances, Resources and Human Power
The most crucial reason a non-profit would consider a partnership is to gain a financial advantage. Considering most companies have a higher budget to spare, the probability of acquiring the total monetary amount required for the execution of a project or to continue operations in the long haul is higher. It is also more feasible than relying on specific donors who only sponsor one aspect of an event. The great thing about approaching companies is receiving product donations or asset sharing. Many companies tend to upgrade their systems after a particular period with sophisticated devices requiring them sometimes to replace perfectly good products. Instead of storing it in a back room or trying to sell it off, giving it to a charity to conduct their operations would be better. They could also share assets where such equipment is too expensive for a non-profit to invest in. Corporations can also provide human power by encouraging their employees to volunteer. By encouraging volunteerism at the workplace, more people will be open to collaborating with charity organisations.
Having Technical Expertise
A charity must put ample thought into who they want to approach as a partner. This is because being affiliated with the wrong company could lead to backlash from the community, even when the organisation executes a range of grassroots projects to help society. In other words, the organisation will lack recognition or appreciation for their good intentions and hard work.
Considering the relevance of approaching that particular company for a partnership is important. For example, considering whether the for-profit company has similar principles to the non-profit organisation is beneficial. Such partners can easily be found by looking at key companies in the non-profit’s focus area. For instance, an environmental-related non-profit will have a high success rate in partnering with a for-profit organisation that makes sustainable products. Approaching a partnership this way will also provide the charity organisation with technical assistance. Specialised companies will have experts in the field on their boards. Hence, a non-profit that lacks direction or assistance can gain the valuable advice of such experts based on their industry experience.
Establish Yourself as a Reputed and Trusted Non-Profit
Charities could be working towards their downfall if they approach partnerships purely in monetary terms. Remember that as a partner, a charity should ideally be with a company as passionate about its cause as they are. Hence, looking at potential partners known to address problems or issues in the cause in question would help charities increase their reputation. Thus, contrary to the perception that it is only a company that would receive positive publicity, it can be attained by charities themselves, purely based on who their corporate partner is.
When a non-profit partners with a corporate with similar interests, it leads to an increased need to double the effort to achieve its goals. Hence, the impact two organisations passionate about the same cause can create is immense and valuable. While the for-profit organisation can offer the relevant resources, non-profits would have the community engagement and trust to carry out the project successfully. Moreover, being associated with a corporate also means the charity would be viewed positively by other partners and associates of the corporation.
Know the Difference Between Asking for a Partnership and a Donation
While a donation is purely done for monetary purposes, a partnership as indicated by the benefits listed above go beyond it. The underlying difference between a partnership and a donation is that in the former, a non-profit is approaching the for-profit company to achieve their missions in a holistic manner. This means, partnerships are sought in the intention of gaining not just financial assistance, but advice, recommendations, creating greater impact or out reach and more. Building a partnership with shared interests essentially allows a charity to grow and evolve over time and strengthen and enlarge those who are positively impacted.
Since two parties that enter a partnership would individually gain in different ways, the power relations between the two are somewhat balanced. Hence, the two rely on each other to gain unique advantages. In contrast, in a donor-donee relationship, the power significantly lies in the donor, making it a one-way relationship. Additionally, in a corporate partnership the non-profit organisation would be presenting a problem that needs to be solved with the help of the other and not simply presenting a ready-made project that simply requires funding. Hence, a partnership offers more collaboration and initiative from both parties to help solve the problem.
Bonus Tip - Have A Strong Online Presence
In the business world, everything happens according to numbers. When dealing with non-profits, however, it mainly centres on positive visibility. Such visibility can be gained if the non-profit is well-known. One of the only ways a non-profit can establish its identity and reputation is through social media. Taking the effort to ensure there is an active online presence helps a business to vet and consider whether this is the kind of non-profit they want to partner with. It is a way for the non-profit also to increase its reputation as a transparent charity organisation whose actions have catered to improving the lives of many people.
Non-profits with an active online presence may alternatively be approached by businesses when they are looking to implement CSR projects for the year. Hence, whether it is a non-profit seeking a partner or a charity that is being sought by a corporate, having an active and positive online presence can help them go a long way.
Daft and Carefully Finalise a Partnership Agreement
Like any other business partnership, an official partnership between a for-profit and a non-profit will have an agreement. It is vital that all-important personnel is included in the formation of the agreement. While it is fine to have one contact person to liaise with during the early stages, ensuring that the managers and decision-makers are physically present at some point before the agreement is finalised is a factor that must not be taken lightly. Ensuring shared goals and writing down the roles and responsibilities of each organisation is an important features. Also, noting the short and long-term expectations of the partnership may be beneficial when assessing the feasibility of continuing it in the future.
Achieve Your Mission and Gain More Visibility for Your Efforts with a Great Corporate Partner
It is very rare for a non-profit to be financially secure without a corporate partner. Hence, put yourself out there and start finding the right partner that shares similar goals and objectives. With a guaranteed mode of financial assistance and a board of experts to tackle far-reaching issues within the problem, achieve your end-goal whilst gaining more visibility for your efforts with the right corporate partner.
