It’s unprecedented. It’s astonishing. The nonprofit world is reeling. Philanthropy will never be the same. So, why should your company care about this news…?
With Bill Gates’ recent decision to leave his corporate duties to focus on The Bill & Melinda Gates Foundation, and now Warren Buffet’s announcement that he’s giving away $37 billion of his estimated $44 billion in assets, we need to take a hard look at corporate philanthropy, what it is, who benefits and what’s in it for you and your company. Even though Gates and Buffet are donating their personal wealth accumulated from individual efforts in the corporate sector, the spotlight is on the “giving.”
The focus of an upcoming article I intend to write in more length, I still wanted to address the topic in this forum, in this timely way. Having worked as a marketing exec for nonprofit organizations, and now consulting for nonprofits and businesses, corporate philanthropy is a win-win situation that helps both companies, and the charitable organizations they touch, to live their missions. It embraces cause-related marketing, sponsorships, and corporate grants among other ways companies can make a difference in their communities.
Even a small business can benefit from an alliance or sponsorship of a local nonprofit organization. There are stats and figures that prove the point, but first, let’s talk about what your company is doing now in corporate philanthropy.
- Who’s in charge? Community relations or branding and marketing?
- What’s the budget as a percentage of total operating budget?
- What do you expect from the charity for your dollars?
- How do you select the nonprofits you partner with?
- Do you have strategic marketing objectives for these partnerships?
Please share. Let’s learn what’s working and where there are missed opportunities.
Tags: Philanthropy
I’m a little wary to identify our business – not sure what the bosses would think – but let’s say it’s a global financial services business, dealing with professionals and rich private clients.
For us, involvement in community ventures serves several purposes.
Our staff want it and expect it, and lots of them give up time and energy to making the projects we partner with successful (e.g. reading support in schools in London’s most deprived borough). As such it serves as a recruitment and retention tool.
At the same time, in many new markets, where we are building our presence, regulators and government expect us, as a rich Western firm, to be putting something back into the country. There have been cases where regulatory decisions have been helped when we’ve been able to reply positively to questions about our engagement in the community.
Finally our clients expect it. Often they are actively involved in philanthropy and look to us for advice, assistance and experience in the area. We have far more credibility when we can say that we do it too…
So it has both strategic and tactical benefits, and it’s the right thing to do.
Thanks for your feedback, Jestyn. Your company’s experience is another example of the benefits for both the coporations and the communities they serve.
In the past few years, employees have gained more influence and empowerment in their companies’ coporate philanthropy efforts. Recruitment and retention are affected, as you point out, as people yearn to make a difference in others’ lives.
Your company has benefited in its dealings with the government as a result of its philanthropic work. Now, that’s a bonus.
And lastly, shareholders and business owners can never complain when clients and customers choose companies that practice corporate philanthropy. Everyone wins here. Kudos to your company and to you!
My last company dedicated a small amount of its profitability to help schools in the community. It coincided with the brand they were trying to build and it helped the company employees find more meaning in their work. But it has to be done as a sincere effort to make a difference. If it is a marketing gimick then you don’t realize the full benefits and people get more cynical than if you hadn’t done anything!
Very true, Greg. In my experience working with cause-related marketing partners, I found that the motive for these relationships was often 90% CSR and strategic business related and 10% altruistic. That may have changed slightly now, but in the longrun, as a nonprofit marketing professional, it didn’t matter to me what the motivation mix was, as long as the charity AND the corporate partner benefited.
When I worked with large corporations, it was employees who carried the torch on the ground level, as they are the ones who feel empowered by the entire experience. And frankly, I think that’s great. If working hard for shareholders’ or business owners’ bottom line doesn’t motivate employees in full, and practicing corporate philanthropy adds a dimension of giving to their jobs, it’s a win-win. It’s genuine at this level and that’s what counts.