An insider's guide for nonprofits: leveraging corporate partners for social change

[Alicia_Schmidt]

Creating shared value

Corporate partnerships play a critical role in helping to resource nonprofits, giving them the funding and tools needed to boost their social impact. Unlike the old days of one-sided corporate donations (often including oversize novelty checks presented at a staged photo opp) more companies now see the value in forming mutually beneficial relationships with nonprofits. What used to be a purely philanthropic exercise is now rooted in the idea of creating shared value - collaborating in ways that generate mutual benefits, such as joint initiatives that both address societal challenges and contribute to business success. 

By tapping into the financial resources, technological capabilities, and human capital of businesses, nonprofits can scale their operations, reach wider audiences, enhance their credibility, and implement more innovative programs. Beyond financial support, corporations can offer in-kind donations, such as products, services, or even skilled volunteerism, where employees contribute their expertise to help solve specific challenges faced by the nonprofit.

Corporations now recognize the value of nonprofit partnerships in enhancing their brand reputation, building customer loyalty, solving social problems that impact business, and engaging employees. By partnering with nonprofits, corporations can demonstrate their commitment to social and environmental causes, which aligns with the growing consumer and investor demand for socially responsible business practices. As governments and industries implement stricter environmental, social, and governance (ESG) standards, nonprofit partnership can also help companies stay in compliance and help companies stay ahead of emerging regulations.

These days, many companies want to be more than just donors. They want to be active partners in social change.

The importance of strategic alignment

Many companies are now aligning their business strategies with broader social and environmental goals. This alignment creates opportunities for strategic partnerships with nonprofits that share similar impact objectives. For nonprofits, understanding these dynamics is crucial in forming successful corporate partnerships. This requires nonprofits to clearly articulate their value proposition and how their work complements the business objectives of the corporation. Cause marketing campaigns, joint advocacy efforts, volunteering, and co-branded initiatives can strengthen the partnership and amplify the impact. These collaborations, when done effectively, have the potential to drive meaningful and lasting change in our communities, addressing complex social and environmental issues that no single entity can tackle alone.

Basic types of corporate partnerships

There are several types of corporate partnerships out there and the boundaries of those partnerships are evolving every day. Here are a few of the most popular:

event sponsorship

A partnership where a company provides financial support, products, services, or other resources to help fund or organize an event. In exchange, the company gains brand visibility, audience engagement, and promotional benefits, often through logo placement, direct interaction with attendees, and strategic alignment with the event's theme. This sponsorship helps companies enhance their brand reputation, connect with target audiences, and demonstrate corporate social responsibility.

grants

Corporate grants are financial donations or resources provided by businesses to support initiatives, organizations, or projects that align with their corporate social responsibility (CSR) goals. Companies typically distribute grant funds through various legal entities including Corporate Foundations, Corporate Social Responsibility (CSR) Departments, Donor-Advised Funds (DAFs, Public-Private Partnerships (PPPs), and Third-Party Grant Administrators depending on their corporate structure, goals, and tax considerations.

employee matching

A program offered by some companies where they match their employees' donations to charitable organizations, typically on a dollar-for-dollar basis or at a certain percentage. For example, if an employee donates $100 to a nonprofit, the employer might match that contribution with another $100, effectively doubling the donation.

Corporate matching programs encourage charitable giving by amplifying the impact of employees' donations. Some companies also extend matching programs to volunteer hours, where they make financial contributions based on the number of hours an employee volunteers at a nonprofit.

employee volunteering

Refers to programs organized by companies that encourage and support employees in dedicating their time and skills to volunteer for charitable or community causes. These programs are often part of a company's broader Corporate Social Responsibility (CSR) initiatives. The goal is to foster a sense of social responsibility, build team spirit, and contribute positively to society.

Common forms of corporate employee volunteering include:

• Paid time off for volunteering: Companies offer employees paid time off specifically for volunteer activities.
• Team-based volunteering: Groups of employees volunteer together for community projects, such as environmental clean-ups, food drives, or building homes.
• Skills-based volunteering: Employees use their professional skills (e.g., legal, marketing, financial) to support nonprofits or social enterprises.
• Company-organized events: The company arranges volunteer opportunities with partner organizations and encourages employees to participate.
  
  

cause marketing

A type of marketing that emphasizes a company’s commitment to social or environmental causes while promoting its products or services. Companies are moving away from this term (as it can suggest the interest in impact is just marketing driven) as these campaigns become more integrated into larger corporate social responsibility (CSR) strategies.

product or service partnerships

Collaborations between companies and nonprofits to create joint ventures, or engage in co-branding. Examples include co-branded products, bundled services, and cross-promotions. (Red) is a great example of a nonprofit that thrives in these types of partnerships.

in-kind donations

Refers to companies providing goods or services, rather than cash, to support nonprofits or charitable causes. These donations can include items like equipment, software, food, or professional services such as legal advice or marketing expertise.

Finding mission aligned corporate partners

Finding mission-aligned corporate partners requires a strategic approach that combines research, networking, and an engaging pitch. By identifying companies that share similar values and goals, leveraging existing relationships, and utilizing tools like industry events and CSR reports, you can target potential partners effectively. Here are a few tips for finding your next corporate partner:

• Research corporate websites and Corporate Social Responsibility (CSR) Reports: Review the CSR sections of company websites to understand a company’s philanthropic priorities and past partnerships. These areas of the website may be nested under a company’s “Social Impact,” “Social Responsibility,” “Sustainability,”or “ESG” tabs – often located near where you’d find their “Careers” or “About” pages. Many companies publish annual CSR reports that highlight their philanthropic efforts, including matching programs and cause-related partnerships. Nonprofits can identify companies with similar goals by reviewing these reports.
  
  
• Research via online platforms: Websites like Double the Donation, Benevity, and Charity Navigator often list companies offering matching gift programs and grants. You can also use databases such as Candid’s Foundation Directory, and CSR Hub to find information on corporate giving programs.
  
  
• Leverage industry networks and events: Joining nonprofit coalitions or industry groups (e.g., environmental, health, education) can provide access to corporate sponsors and matching programs targeting those specific areas. Attend industry conferences, nonprofit summits, and corporate events to network with potential corporate partners. Corporate-sponsored conferences, CSR forums, or nonprofit fundraising events often feature companies looking to align with causes. Networking at these events can reveal new partnership opportunities (SXSW, Skoll World Forum, Benevity Live, AI For Good Global Summit, Global Goals Week, Global Impact Investing Network (GIIN) Impact Forum, Social Capital Markets SOCAP).
  
  
• Leverage AI tools like ChatGPT: Search for companies/corporations who may be publicizing grant opportunities relative to your cause area.
  
  ChatGPT can help you identify potential corporate partners by:
  

Industry Research: Ask for an overview of industries or sectors that align with your mission, target audience, or values. For example, if you’re in sustainability, ChatGPT can suggest companies known for eco-friendly initiatives.

Example: “What are some leading corporations that focus on sustainability and eco-friendly practices?”

Competitor Analysis: Identify companies that partner with your competitors, which may indicate potential interest in similar partnerships.
Example: “Which companies are supporting organizations similar to [name of your organization]?”

Social Responsibility Goals: ChatGPT can help you find corporations with strong corporate social responsibility (CSR) goals, aligning your mission with theirs.
Example: “What companies are known for their corporate social responsibility programs in education/healthcare/environment?”

Trending Partnerships: ChatGPT can provide insights into current corporate partnership trends, helping you spot industries or companies investing in particular areas (e.g., technology, health, or DEI).
Example: “What are some trending partnership areas for corporations in 2024?”

Identify Synergies: You can use ChatGPT to brainstorm synergies between your organization’s mission and a company’s objectives, improving your partnership appeal.
Example: “How can a company in the tech sector benefit from partnering with a non-profit focused on digital literacy?”

• Engage employees at targeted companies: Employees at corporations may advocate for their employer to match donations or create partnerships with nonprofits. Nonprofits can reach out to employees or use employee giving portals to encourage involvement. 

Employee Resource Groups (ERGs): Many companies have ERGs, voluntary, employee-led groups within an organization that aim to foster a diverse, inclusive workplace aligned with the organizations they serve. Depending on the company, these groups may be given dedicated resources (grantmaking budgets, volunteer event budgets, speaker budgets, etc.). Conduct a quick search on the company’s DEI page to see if an ERG aligns with your mission or the community you serve (ex: Braze ERG Grant program).

Approaching and cultivating relationships with corporate partners

"Success in a partnership is not in finding the right partner, but in being the right partner." - Unknown

When it comes to finding and forming powerful connections with corporate partners, a thoughtful and personalized strategy is key. Keep in mind that even if you are mission aligned with a company’s values, the philanthropic programs are often run from relatively under-resourced teams (relative to the company's size and/or value). They often have limited budgets and headcount and can not respond to every request. For this reason, a multiple engagement strategy, with follow-up may be the best approach.

Here are some key steps for success sourced from Pledge 1% members:

Prepare a Compelling Case

• Develop a partnership proposal: Craft a clear and concise partnership proposal that outlines the value for both the nonprofit and the company. This should include your nonprofit’s impact, reach, and potential outcomes from the partnership. 
  
  
• Focus on mutual benefit: Companies are interested in partnerships that not only contribute to social good but also help them achieve business objectives like brand visibility, customer engagement, or employee satisfaction. Emphasize how partnering with your nonprofit can support these goals.
  
  
• Provide data and impact metrics: Be ready to present tangible data about your nonprofit's achievements and potential return on investment (ROI) in terms of social impact, media exposure, or employee engagement.

Make the First Move

• Target the right person: Reach out to corporate social responsibility (CSR) departments, marketing teams, or high-level executives with influence over partnerships.  Leverage the connections of your board members and advisors to introduce your nonprofit to corporate contacts.

• Build a connection: Introduce your nonprofit’s mission and impact.  Do the work to dig into the company’s giving focus areas ahead of time and show how your nonprofit will help them meet their goals.

• Be authentic and personable: Tailor your communication to each company, showing genuine interest in their goals while demonstrating how your nonprofit aligns with them. 

Offer Various Forms of Engagement

• Start “small”: Start with an offer that benefits the company and is low-cost and low-effort like engaging volunteers or employee matching. Encourage companies to contribute in-kind donations, such as products, services, or employee volunteer hours.

• Be flexible: Propose different tiers of financial support or sponsorship packages for events, campaigns, or ongoing programs.

• Propose a collaboration: Work together on collaborative campaigns like cause-marketing campaigns, co-branded initiatives, or advocacy efforts that can promote both the company and your nonprofit.

Sustaining long-term corporate partnerships

So, you've sealed the deal with a corporate partner. Bravo! Now, the real work begins. Here are some actionable strategies to help your nonprofit forge and maintain these essential alliances.

• Recognize and celebrate successes: Publicly acknowledge the company’s contributions and successes through joint events, media, or annual reports. From the start, clarify what both parties expect from the partnership in terms of promotion, visibility, and engagement. Define how the corporate partner will feature your nonprofit in its marketing channels (e.g., social media, newsletters, press releases) and what you will do in return. Marketing departments thrive on storytelling. Provide them with compelling stories of how the partnership is making a difference. Whether it’s a personal story of someone impacted by your nonprofit’s work or the overall community benefit, real-life examples humanize the partnership and can resonate with the corporation’s audience. Be sure to provide high-quality photos, videos, infographics, or case studies that demonstrate the impact of the partnership. Make it easy for them to share your nonprofit’s success through their social channels, blogs, or advertisements.
  
  
• Demonstrate data-driven results: Regularly showcase measurable results from the partnership, such as positive social or environmental outcomes, to reinforce the value of collaboration.
  
  
• Keep the dialogue flowing: Foster ongoing, transparent communication to address any issues, share progress, and align expectations.
  

• Ride the waves of change: Adapt and innovate to keep your partnership fresh and relevant. No matter how the landscape shifts, you want to ensure your partnerships' continued relevance. Meet regularly with your company connection and ask for their insights into what challenges they see coming that might influence their decision making. Follow industry reports and research and monitor thought leadership to get ahead of any industry fluctuations that might be coming. Subscribe to CSR or ESG publications like BSR, the UN Global Compact, or Edelman’s Trust Barometer to stay updated on trends. Follow thought leaders and organizations focused on social impact trends, such as the Stanford Social Innovation Review, Trellis Group, The Guardian – Sustainable Business Section, Forbes' CSR blog, or corporate responsibility blogs.