Corporate partnerships offer a dynamic avenue for fundraising managers to cultivate strong alliances with businesses that benefit both parties involved. By understanding the intricacies of corporate giving mechanisms, and adopting a strategic approach to prospecting and account management, fundraising managers can unlock the full potential of corporate partnerships and make great steps towards their organisational vision as well as their fundraising goals.
Understanding Corporate Partnerships
These partnerships present a plethora of opportunities for organisations to align with businesses – they are driven by various motivational factors, including brand alignment, marketing exposure, staff engagement, and corporate social responsibility (CSR). As businesses increasingly recognise the importance of CSR, there is both a growing desire and expectation for them to contribute positively within their communities.
What is Corporate Social Responsibility (CSR)?
CSR is a business approach that integrates social and environmental concerns into its operations and interactions with stakeholders. It encompasses a company’s commitment to contributing positively to society, beyond its financial bottom line. CSR initiatives can include ethical business practices, environmental sustainability efforts, philanthropy, community engagement, and employee well-being programs. By embracing CSR, companies aim to make a meaningful impact on society while also enhancing their reputation, fostering employee loyalty, and creating long-term value for shareholders.
Mechanisms of Corporate Giving
Corporate giving can take various forms, each offering different benefits for both parties involved. Corporates can make direct donations, set up cause-related marketing opportunities, run a bequest session with their internal staff, sponsor events, give in kind, among other options. Truly strategic partnerships can include many of these options, creating layered relationships of mutual benefit that drive both organisations towards their aligned visions. In creating a strategic partnership, it is important to note that both the company and your not-for-profit should be working with equal momentum and energy, setting a clear plan and targets at the beginning of your work together for what you will achieve. Understanding the nuances of each giving mechanism is essential for fostering successful partnerships.
Approaching and Managing Corporate Partnerships
When approaching potential corporate partners, adopt a dual strategy of new business prospecting and account management. Building a pipeline of prospective partners and conducting thorough research lays the foundation for meaningful engagements. Establishing personal connections with decision makers, and creating tailored proposals based on mutual goals and values can significantly enhance the likelihood of success.
The key to nurturing long-term partnerships is effective account management. Undertaking regular partnership reviews allows you as an organisation to assess progress, address any issues, and ensure alignment. Meaningful acknowledgements and ongoing communication show appreciation, and reinforce the value of these partnerships to both parties.
Set the expectation early that you are worthy of investing in – your organisation shouldn’t need to spend a lot of money on marketing the partnership, this should ideally be the responsibility of your corporate partner. In an ideal partnership, the corporate should invest an additional 50% of the original partnership value amount back into marketing their partnership with you.
For example, if they offered you $50,000 a year for your partnership, they should spend an addition $25,000 on marketing and promoting their relationship with you – this could. include joint social media campaigns, billboards, bus backs – quality displays that announce what they are doing with you.
All marketing costs should be over and above the partnership amount – if the corporate isn’t able to commit to the marketing target of 50%, the marketing costs should not be worn by your organisation.
Considerations for Success
Several considerations can influence the success of corporate partnerships. These include understanding the return on investment, maintaining a strong yes-or-no approach, engaging decision makers, and leveraging your organisation’s brand value. By strategically evaluating potential partners, setting clear expectations, and fostering mutually beneficial relationships, you can maximise your impact of your corporate partnerships.
Examples of Successful Corporate Partnerships in New Zealand
Mastering corporate partnerships requires a strategic mindset – it will be reliant on effective communication, and a commitment to mutual success. By leveraging the opportunities offering by corporate giving mechanisms, and cultivating strong relationships, you as a Fundraising Manager can drive meaningful social change, and advance your organisation’s mission.
If you’d like to learn more about how to maximise your organisation’s potential for corporate partnerships, we’d love to meet with you and discuss.
