Nearly every nonprofit organization in the United States boasts some opportunity or another for corporations to help support their cause. From sponsoring events to publishing advertisements in an orchestra program book, there's no shortage of nonprofits who are eager for corporate support. The unfortunate story is that corporations are giving less every year, and nonprofits have an increasing need for support.
Here's the kicker:
Corporations are giving for the wrong reasons, and nonprofits are asking for ALL the wrong reasons.
Up until now (especially in the performing arts sector, where I spend all of my time), corporate philanthropy has been strictly a business exchange: corporations give money, and nonprofits give reach.
However, it never works out that way, really. Nonprofits have such limited reach as it is -- if they had more reach, they might not need a corporate support -- and the corporate marketing manager walks away bitter that they only got a quick mention at the beginning of an orchestra concert.
On the flip side, the nonprofits are in dire need of financial support, but corporate dollars only go so far. They don't necessarily offer the stability that a strong individual donor relationship can bring (i.e. recurring gifts, serving in an advisory position, etc.).
I'd like to propose a different way of thinking:
Nonprofits should ask for reach, not money. And corporations should ask for a stronger workplace community, not increased reach.
Here's how this works...
The Techie Corporation takes a random sample of causes their staff members support (notice, this plan doesn't start with The Goodie Nonprofit asking The Techie Corporation for money).
The Techie Corporation discovers that its workplace community is interested in a few causes; maybe homeless shelters, third-world country infrastructure improvement, and the performing arts.
Great.
Now, The Techie Corporation approaches The Goodie Nonprofit and says, "Hey, we've got some people who are really interested in supporting the Orchestra. What can we do to help?"
We're no longer talking about concert program book ads... We're talking about an open conversation among people who are passionate about the same cause, deciding how to have a really strong and meaningful impact.
Maybe this results in the corporation's name on a new building (if we're talking big dollars), but more likely, it means that the corporation is taking ownership of a small but meaningful story -- of something that matters to their workplace community.
Think about this : a corporation could give $1,000 to be thanked at the beginning of an orchestra performance. But what if the corporation gave $1,000 to fund a bus full of elementary school students attending that same concert, brought along a videographer, and then told the story of the kids seeing classical music for that first time at that concert...
The effects of this change in thinking are huge for everyone involved:
Passionate People Work Better Together.
When a corporation walks into a nonprofit office and says, "Hey, there's a dozen people on our staff who really want to support your cause", they aren't just offering giving limited philanthropic dollars -- they are creating opportunities for the nonprofit to increase their reach (and potentially their funding sources). Every nonprofit manager will tell you that it's better to have one thousand $1 donors than just one $1,000 donor.
Also, when a corporation looks to its workplace community for causes that their community is passionate about, it gives staff members the opportunity to bond over a mutual passion. This creates a culture of philanthropy, positive thinking, and trust in the workplace.
Collaboration Raises Visibility
So then, what happens when this positive workplace culture becomes infectious? More people want in. Suddenly, the corporation is given distinction for having a philanthropic culture. Just look, for instance, at Microsoft, which regularly encourages its community to be even more philanthropic than the year before:
Empowerment Begins with Inclusion... At Microsoft, giving is ingrained in our culture, and as our employees will tell you, one of the most rewarding -- not to mention fun -- aspects of our jobs. In 2015, Microsoft employees raised a record-breaking $125 million for more than 18,000 nonprofits and schools across the globe. Participation rates hit an all-time high, at 71 percent, as our people donated more time, talent and money to help address the local and global causes they care about most.
Consumers Care; They Really Care.
Doing "corporate good" isn't enough anymore, and as the millennial generation gains the market's majority purchasing power, a strong philanthropic story matters.
Here's some striking numbers from a 2015 Aflac Corporation Survey:
- 75 percent of consumers said they would be happier to work for a company with a strong corporate social-responsibility program.
- 65 percent of respondents link diversity with a company's ethical standards.
- 92 percent of millennials are more likely to purchase from an ethical company.
Here's the gist:
By working with nonprofits to help fulfill their mission, corporations create an ecosystem of trusting consumers, a happier workplace community, and a better place to call home.
For corporations large or small, philanthropy matters. It's not another form of marketing -- it's an ecosystem that will continue to give back to everyone involved.