The ultimate guide to corporate partnerships for nonprofits

Ebook

The ultimate guide to corporate partnerships for nonprofits

Table of Contents Benefits of s a corporate partnership

4

Types of corporate partnerships

9

Corporate sponsorships

13

Grants

14

Employee matching gift programs

15

In-kind donations

17

Field volunteering

18

Skills-based volunteering

21

Cause Marketing

22

How to prepare for a successful partnership

24

Table of Contents

As people around the world become increasingly aware of societal and environmental issues, brands and employers take steps to address these concerns.

They review their supply chains, check their environmental footprint, implement policies for better work-life balance, and partner with nonprofits.

Although corporate partnerships like these aren't new, they are gaining momentum as more companies realise their high value.

In the Corporate-NGO Partnerships Barometer 2020, nearly all participants (98%) said they believed these partnerships have made corporates better understand ESG issues. In addition, they were effective in raising funds and helped improve reputation and business practices.

Take the example of L'Oréal. In their yearly "Citizen Day" volunteering week, they can motivate 200 employees to take part in activities like clean-ups, meal preparations, building houses for people in need, and more. All while taking care of the costs for material and catering.

Seeing companies' enthusiasm for collaboration and the effectiveness of these projects, more and more nonprofits are teaming up with corporates.

In this guide, you will learn about the various types of corporate partnerships, what makes them successful and how to get started.

Introduction

3

Benefits of a corporate partnership

In a corporate partnership, a nonprofit receives funds, goods, or services in exchange for something the corporate partners see as beneficial for their business or just as part of giving back to the community.

In their various forms, corporate partnerships leverage a company's strengths in favour of the nonprofit's beneficiaries.

What is a corporate partnership

5

Benefits for nonprofits Partnering with a corporate can make a significant difference for a nonprofit. Depending on the type of partnership it can provide...

Financial support and a steady flow of funds to secure current programs or start tackling larger projects New advocates and an expanded supporter base (more donors and more volunteers) Recognition, awareness, and media coverage about the nonprofits themselves and their cause Access to pro-bono expertise for different departments in a nonprofit, from fundraising to IT support or marketing Network opportunities with other partnered nonprofits

Benefits for nonprofits

6

Benefits for corporates

Knowing what's in it for corporates will come in handy when pitching a partnership. So here are some facts and stats that will help you win them over.

1. Increase revenue Research shows that social investments, like partnerships with nonprofits, can deliver up to a 6% increase in share price and a 20% increase in sales.

2. Improve brand image Today, buying decisions are 60% based on brand image.

And ethical values are increasingly important as 81% of millennials want companies to be good corporate citizens.

3. Attract new talent Employees today are looking for meaningful work experiences. One study found that 79% of adults consider a company's mission before applying.

4. Reduce employee turnover Purpose-driven employees show 5x higher levels of wellbeing and 4x higher levels of engagement in the workplace.

5. Increase productivity Volunteering together promotes collaboration and communication across teams and will bring an overall boost in morale and engagement.

Benefits for corporates

7

“Society is calling out for everyone to play their part in supporting those most in need.

Nonprofits have the opportunity to ensure every company can develop a positive purpose, aside from commercial goals.”

GEETHA MURALI Room to Read Source

Benefits for nonprofits

8

Types of corporate partnerships

Corporate partnerships can take various forms.

Several are conducted as a simple donation, whereas others are more engaging and collaborative, involving developing solutions and committed stakeholders.

Types of corporate partnerships

10

1 Corporate sponsorship

What it is

In a corporate sponsorship, a business sponsors a particular program or event in exchange for having its logo, signage, or other marking material displayed.

Who to partner with

The engagement in this type of partnership is low, making it a good choice for companies with little time or resources. Look at a company's mission and target audience to find a good match.

Things to consider

Sponsorships are usually connected to specific projects.

Therefore, having a good idea of your nonprofit's budgetary needs is crucial if you won't be able to use the contributions from your sponsor in other projects.

Types of corporate partnerships

11

Partnering with corporates for charity runs Organizing sports events is a good way of raising awareness and funds at the same time, which makes them a popular option for corporate sponsorships.

Marathons, for example, attract people who want to set a challenge for themselves and do some good along the way.

Alternatively, some marathons also offer special places for people signing up via a nonprofit to raise funds, like the Virgin Money Marathon in London.

Types of corporate partnerships

12

2 Grants

What it is

Grants are financial donations given to nonprofits who can then use them either for any purpose (unrestricted or undesignated) or with limitations or requirements that determine precisely how the funds should be used and who is eligible for the funding.

Who to partner with

Companies from all kinds of industries may offer grants. A quick internet search will help you find corporates and their foundations offering grants related to your cause.

Things to consider

A grant is closer to an investment than to a one-time donation and often requires a thorough proposal and report later on. Note that companies might take some time to assess grant proposals, so plan for it early.

Types of corporate partnerships

13

3 Employee matching gift programs

What it is

The contributions in this type of partnership start with the company's employees. After donating to an eligible nonprofit, the company will present the same or double the amount to that nonprofit, essentially doubling or tripling the initial donation.

Who to partner with

This type of partnership involves somewhat more of an effort on the corporate's side because it requires a matching gift policy. However, it also generates a higher return when it comes to employee engagement.

Corporates with an experienced CSR and HR department are a good match for this type of partnership.

Things to consider

Keep in mind that some businesses have already established a matching gifts initiative, and nonprofits can start receiving donations simply by joining their existing program.

Types of corporate partnerships

14

4 In-kind donations

What it is

Here, instead of a financial contribution, the company might offer services or products.

Who to partner with

Start by thinking about what goods or services would help save resources and pursue the organisation’s mission. For example, if you work at a soup kitchen, you could partner with companies producing disposable plates or collaborate with supermarkets and restaurants to reduce food waste. You might not get all the donations you need, but even a small contribution can pave the way to long-lasting corporate partnerships.

Things to consider

When pursuing in-kind donations, organisations must be mindful of logistics and shipping costs. However, some international organisations already have a system to send in-kind contributions to the areas where they are needed.

Types of corporate partnerships

15

Save the Children: Making it easy for corporates to donate the right material Save the Children Switzerland is working with their partners in the asylum sector to provide refugee children with a safe space to be children again.

As this requires lots of material for learning and playing, the nonprofit reached out to corporates with a clear suggestion for an activity: Come together as a team to build a "Learn & Play Cart".

The organisation gave clear instructions about what to include and invited the contributors to a Learn and Breakfast session to hear more about Save the Children's cause and projects.

Types of corporate partnerships

16

5 Field volunteering

What it is

Employees volunteer hours to help a nonprofit with everyday activities like packing food bags, cleaning a beach, or serving meals at a soup kitchen.

Who to partner with

Corporates are most likely to use this kind of partnership for team building as it promotes collaboration and strengthens relationships. Look for companies that place a high value on company culture or start-ups with rapid growth.

Things to consider

The activities should be easy to do for anyone who wants to volunteer. To facilitate the process, prepare and test different activities or count on solutions like Alaya which has experience in creating activities to bring nonprofits and corporates together.

Types of corporate partnerships

17

6 Skills-based volunteering

What it is

In this case, employees offer their expertise to provide a service that would benefit the nonprofit's management, like helping with financial planning, drafting a marketing or social media strategy, or translating a website.

This type of engagement represents an enormous saving and enables nonprofits to allocate resources to more pressing needs.

Who to partner with

If you need specific help, you don't need to go to a business that only offers this service. An engaged partner company can help you across departments and even identify points of improvement you hadn't considered before.

Things to consider

To count as a corporate partnership, this option needs a corporate policy for employees to follow. Otherwise, it's simply individuals helping out nonprofits. However, it's still beneficial to partner with a company to access a wider pool of knowledge. Corporates with an experienced CSR and HR department are more likely to already have a policy installed or are more likely to implement one quickly.

Types of corporate partnerships

18

How PwC Switzerland offered skills-based volunteering through Alaya In 2020 employees from PwC Switzerland offered their creativity and expertise to 5 nonprofits in a hackathonlike brainstorming day.

They came together in groups to work on specific challenges or opportunities these nonprofits faced. For example, expanding their finance strategy or preparing a business plan to expand their donor base.

Read the full story here.

Source

Types of corporate partnerships

19

“It was really interesting to get outsiders’ ideas. I believe that with these kinds of events, people not engaged in the nonprofit world may have a better understanding of the challenges we face.”

BRAIN PROJECT AFRICA

“A big thank you for organising this brainstorming activity with a fantastic team. We were impressed by the participants’ professionalism and appreciated their commitment and creativity. We hope that this collaboration can continue in the longer term.”

CANSEARCH

Types of corporate partnerships

20

7 Cause marketing

What it is

In this scenario, a company sells a product or service, with part of the proceeds going to the nonprofit. As a result, the business benefits from increased sales, and the nonprofit receives funds and visibility.

Types of cause marketing

Product sales: The company donates a percentage of the sales of a product.

Point-of-purchase: A customer adds a donation at the store cashier, and stores give it to the nonprofit.

Licensing of the Nonprofit's Logo, Brand, and Assets: The nonprofit gives its partner the right to use its logo on products.

Who to partner with

Just like with corporate sponsorships, it makes sense to go for companies with products and services or even company values close to your cause as a nonprofit.

Things to consider

With online retail shopping soaring, nonprofits should consider adapting the point of purchase to online purchase requests. Timing is also essential as employees might be too busy during high season, and product or services prices vary throughout the year.

Types of corporate partnerships

21

How to prepare for a successful partnership

A successful partnership is: Mutually beneficial

It ensures long-term success and explores ways in which both parties can benefit from achieving each other’s missions and shared goals.

Aligned in values

It is based on shared values which are vital in developing innovative responses to and/or driving social change.

A dialogue

It is facilitated by regular and open communication to convey and agree on partnership expectations.

A successful partnership needs: Time to build trust, respect, and understanding.

A dedicated team with specific roles and responsibilities.

Frequent communication to share project updates and success indications.

Flexibility to adapt quickly to changes and unforeseen challenges on either side.

Basics for a successful partnership

23

A significant number of partnerships between companies and NPOs have been formed worldwide in the past. What is the secret? How can NPOs increase the chances of having a successful collaboration? We've put together some valuable tips for every step of your process.

1. Know what you want This first step is the foundation and guide for all of your subsequent efforts. Take some time to brainstorm and get opinions from your colleagues.

Determine what you're looking for in the partnership Try answering these questions to identify the needs of your nonprofit

Which type of donation would make the most significant difference for your nonprofit?

Can you offer volunteering activities that don't require much training or supervision?

What level of donation or volunteering hours would be worth the investment and effort on your side?

For in-kind donations, do you have storage space for them?

What is non-negotiable, and what would you need for the partnership to work?

How to prepare for a successful partnership

24

2. Find your match Once you know what you’re looking for, start looking for your perfect corporate partner.

Make a list of potential partners Look up organisations in your area.

Reach out to your board and volunteers who might have valuable contacts.

Take a look at the type of corporates other nonprofits of your fieldwork collaborate with.

Evaluate your candidates Find their mission and vision on their website and see if they align with yours.

Read their annual report. You can find out a lot about their business and their priorities.

Check if they have a CSR policy and/or history of working with nonprofits. This can make the whole process easier.

Investigate if there has been any scandal or bad press around this company.

Find the right contact Take a look at the company's LinkedIn page. Who are the decision-makers? Do you have any connections in common?

How to prepare for a successful partnership

25

3. Write your proposal(s) To prepare your pitch to potential corporate partners, get a clear idea of who you are and why a company should partner with you. Then, make sure you personalise every proposal to every potential partner.

Define who you are and why you exist When and why was your nonprofit created?

Be clear about your vision and mission Share your theory of change to explain how your organisation will achieve its mission

Create a Partnership Value Proposition Explain why you are a good match Describe the value you can provide to your partner Address potential concerns like community impact, accountability, impact reporting, and transparency around the use of funds

Describe the partnership you envision Provide a list of options for collaborative action.

Give detailed information about the potential impact, e.g., number of beneficiaries, regions positively affected, resources secured, etc.

If possible, share testimonials or impact reports from previous partnerships

How to prepare for a successful partnership

26

4. Set yourself up for success Once you have green light for the partnership, it's time to get into the details. Good planning and organisation will facilitate a smooth collaboration both partners will like to repeat.

Define partnership objectives and expectations Make sure to set realistic and SMART goals: Specific, Measurable, Achievable, Relevant and Time-based

Identify risks (technical, environmental, economic, political, etc.)

Take some time to consider worst-case scenarios and how to manage crises.

Align external communication strategies Corporates are likely to have clear guidelines for their public communications, be sure to get familiar with them.

How to prepare for a successful partnership

27

5. Stay in touch Commit to cultivating relationships and communicating with your contacts. Don't fall into the trap of only contacting them asking for help but treat them as strategic partners with a shared mission. Here are some best practices.

Personalise communications Be sure to give your partner the VIP treatment and don't just add them to your automated email lists.

Schedule in-person meetings and visits Whenever possible, meet in person (or virtually!). This will not only help any organisational process, but it will also establish long-lasting relationships.

Invite employees to your events Meet-ups, fundraisers, workshops,... there are many opportunities to invite the employees of your corporate partner.

How to prepare for a successful partnership

28

6. Talk about it After completion of every project or after receiving a donation, communicate the impact it had and be sure to express your gratitude to all contributors.

Create and share a partnership impact report An impact report is likely to be required and also a good opportunity to share your story, strengthen existing partnerships and inspire new ones.

What to include: A description of the partnership A review of the impact against the set goals Highlights and challenges Personal stories from beneficiaries

Give thanks to every contributor You might not have been in direct contact with every person involved, but make sure they know you appreciate their contribution and had a good experience with your organisation.

Prepare external communications with your partner Get permission and approval from your corporate partner, and then give them a public shoutout, including highlights and achievements from your partnership.

How to prepare for a successful partnership

29

And now.... over to you!

We hope this guide helps you start a corporate partnership that will bring your nonprofit to the next level.

To make things easier for yourself, join the Alaya community to count on experts to facilitate efficient collaborations.

With Alaya, your nonprofit will gain visibility to multiple companies already familiar with the concept of corporate partnerships and happy to provide support in various ways.

Get started with the right partner

30

Are you ready to boost your impact with Alaya? www.alayagood.com REGISTER NOW