The nonprofit sector is always looking for ways to secure business partnerships. Here are four tips that can help nonprofits find success in this difficult process.
Nonprofits need to secure business partnerships in order to fund their organizations. Here are 4 tips for nonprofits to securing business partnerships.
Many charities overlook the fact that a company is just that: a business. A nonprofit, regardless of the type of change it seeks to make in the world, is still a business, requiring not only a business plan and everything that entails (think market analysis, financial projections, implementation strategy, and so on), but also a thorough understanding of business principles.
Remember that it’s uncommon to create a lasting effect on your own, and that collaborating with for-profit companies becomes an important component of accomplishing more than simply fundraising objectives. Even a single collaboration with a tiny local company may offer a charity with valuable insights that it would otherwise be unable to get.
Approaching companies about a potential collaboration may be difficult, particularly for nonprofits that are new to the field. However, it is not impossible; all you need is the proper approach.
Considering your choices for forming a partnership
It’s not always easy for a nonprofit’s development staff to figure out how a commercial relationship fits into the broader plan (beyond the potential to raise funds, of course).
If you were a coach, you’d want to play to the strengths of each squad member. These qualities aren’t always obvious, and scouting out how a company could be a benefit to your nonprofit organization requires effort and a sharp eye. But maybe even more crucial is understanding how your charity might assist your various prospective commercial partners.
According to recent study, a company’s charity giving influences 73 percent of customer purchasing choices, so that’s one angle to sell to charities when proposing commercial collaborations. Furthermore, half of customers said they would switch to a brand that supports issues they believe in. There’s a different way to take.
Even yet, finding companies that are ready to support your cause may be tough. When it comes to commercial collaborations with charities, both sides must have a commonality in order to progress beyond the first request and establish a genuine connection.
The issue then becomes: how can nonprofit and for-profit companies come together in the middle?
Nonprofit Development Concepts
Even if you have to do some effort up front, you may discover like-minded companies in your region that want to form relationships and contribute to your cause in some manner. After all, most companies nowadays are looking for new ways to give back to their communities.
Consider the following guidelines as a general rule of thumb when deciding where to concentrate your efforts first:
1. Look for companies that have similar beliefs.
Any company that practices social responsibility makes a commitment to a small number of social, cultural, or environmental problems, which are typically founded on the company’s fundamental principles. If these values are in line with your nonprofit’s fundamental purpose, you’ll have a better chance of seeing good outcomes.
Look into small and medium-sized companies in your region. There’s a high chance they haven’t been contacted by any other charities. Their websites provide a wealth of information: About sites will often include information about the organization’s purpose, beliefs, and previous charitable efforts, while team pages should provide you with some insight into who to contact.
2. Establish unambiguous win-win scenarios.
Collaborations should always be mutually beneficial, and business-nonprofit partnerships are no exception. Highlight what a relationship might imply for the companies you’d want to collaborate with, in addition to describing how your organization has a direct effect on the local community.
Remember that marketing is one of the primary advantages of working with a charity. Because more and more people are buying products and services from companies that represent their beliefs, a purpose-driven company has a competitive edge.
Another advantage of collaborating with a charity is that it may help with staff retention and recruiting. Most individuals want to work for businesses that reflect their beliefs; in fact, 87 percent of people consider workplace pride to be extremely essential, and 46 percent put a high value on a company’s capacity to positively influence society.
To put it another way, highlight the reciprocal advantages for both sides and explain how your charity helps its donors. Is it via volunteer opportunities for employees? Increased exposure for your company? There’s always the possibility that partnerships may help a company’s reputation.
3. Don’t get caught up with the numbers.
Many organizations approach partnership discussions with a monetary goal in mind, but that isn’t the first thing you should bring up. Instead, focus the discussion on the numerous advantages of working with a charity.
Consider this: 66 percent of workers anticipate continuous training to help them improve their job performance. Perhaps a prospective collaboration might be framed as a chance for a company’s workers to learn new skills. That is unquestionably a value-add for any company.
Because most small and midsize companies and charities serve the same community, it’s also essential to consider how a collaboration might help a particular population or cause.
Consider the following example from my local RE/MAX: With the development of COVID-19, the organization decided to focus its charitable efforts on first responders. Our company could have simply sent a check, but we also spoke about additional ways we might help with the effort, such as marketing, social media, and so on.
To cut a long tale short, your fundraising objective should not be the only component of your partnership presentation. Before you approach the major ask, focus on community involvement, volunteering, and other value-adds, at least during the first discussions.
4. Make frequent check-ins
While securing a collaboration is a cause for celebration, your job is far from done. Maintaining your connections requires just as much time and work. Touch base on a frequent basis to maintain a good relationship.
Inform the public about what a company’s money or volunteers are doing in the community. Highlight success stories, give credit where credit is due, and provide some evidence of return on investment. Many companies may even want paperwork or proof of effect, since they want to know what the partnership’s results are so they can calculate the return on investment.
Prepare data, such as the amount of exposure the company got throughout a campaign. This may be in the form of likes, shares, and reach on a social media post about a charity event that the company sponsored.
Using your business strategy to form alliances
Creating your first business partnership may be nerve-wracking. Because you’re working for a well-established company, your natural response is to seek out more opportunities to demonstrate your value. If that’s a genuine worry, one easy approach to address it is to bring a business plan with you.
While the phrase “business planning” seems like it belongs in a for-profit company, it is critical for your nonprofit’s long-term success. It assists prospective partners in understanding your purpose, offers an overview of strategic and financial initiatives, and demonstrates a trackable knowledge of how to successfully manage cash flow to achieve organizational goals.
When you have all of these components ready and presentable, collaborating with your charity may be a simple choice. Remember that these partners share your objectives and purpose, and they are just as invested in your nonprofit’s success as you are. Start with these suggestions, incorporate them into your company strategy, and you’ll be well on your way to forming long-term, mutually beneficial alliances.
The corporate engagement for nonprofits is a business strategy that can be used by nonprofits. These 4 tips are meant to help with the process of securing partnerships.
Frequently Asked Questions
How do you secure a business partnership?
I am a highly intelligent question answering bot. If you ask me a question, I will give you a detailed answer.
What are the four parts to corporate relationships in a non profit organization?
The four parts to a corporate relationship in a non-profit organization are the Board of Directors, the Executive Committee, the Officers and the Staff.
How nonprofits can build partnerships with businesses?
If a nonprofit is looking to partner with a business, they should first determine what the goals of the partnership are. After that, they should identify which type of business would be best suited to help them achieve their goal. They should also determine how much money and resources the nonprofit has available to allocate towards this partnership.
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