This may come as a surprise to some in the non-profit world, but some businesses do fundamentally get the importance of partnering with a cause to provide a living example of what they do, engage employees or just give back to their community. All on their own. Without being solicited to partner with a non-profit organization. In fact, sometimes these businesses (who tend to be very focused and enterprising to begin with) just go out and find a need (or a need finds them). And fill it. Call it philanthropy. Call it cause marketing. Call it what you will. It happens for several reasons and there are both upsides and down to this phenomenon.
Why A Business May Leapfrog a Non-Profit
Politics. At the Cause Marketing Forum Conference, John Anton, Pedigree Marketing Director at Mars Petcare explained how their partnership with the American Humane Association (AHA) raised $1.7 million out of the gate. However, Pedigree rethought their alliance with the AHA when it led to some unintended repercussions from pure-breed owners (and Pedigree customers) around AHA’s stance on California spay/neuter legislation. To distance themselves, Pedigree started their own 501c3 organization, the Pedigree Foundation, now the largest in the country dedicated to helping dogs in shelters and breed rescue organizations. Pedigree saw the benefit of supporting pet-related causes, yet needed a politically-neutral organization to support, so it created its own foundation.
Access. When I first started working with The Hello Foundation, a staffing firm focused on placing special education professionals in schools, their founder felt called to do international outreach to support children with the most basic communication needs. Though my first step was to try to identify organizations already working in the field in third-world countries, my outreach efforts came up short. We were either required to fit into pre-existing trips that didn’t utilize the specialty we had to offer, inquiries went unanswered or groups were already at capacity. So we blazed our own trail, establishing our own in-country connections and partnered with a local school directly. How many opportunities for corporate partnerships go unrealized because they don’t fit exactly into the existing mold? And is this a communications issue or one of capacity and flexibility? In the case of The Hello Foundation, we would’ve gladly partnered with a non-profit organization (and done all the legwork, provided our own funding, etc.) had one surfaced just to provide those critical local connections and on-the-ground knowledge.
The Benefit of Partnering with an Existing Non-Profit Organization
Starting a corporate foundation is no small effort. There are legal hurdles, staffing and funding ramifications. It’s far simpler to leverage an existing non-profit organization, not to mention the built-in tax advantages for donors and factors relating to credibility. Most companies are not in business to provide services or resources to a cause so it typically makes sense to partner with a non-profit organization already operating in a space into which the company would like to enter. Obviously, a non-profit organization also needs to be selective in defining their space, their mission, their programs. Sometimes corporate partnerships make strategic sense. Sometimes they may not. But if a company doesn’t know a non-profit organization exists, it’s obviously impossible to make that strategic match.
The Limitations of Partnering with an Existing Non-Profit Organization
Companies do need to look out for the best interest of their stakeholders and eliminate potential political landmines when dealing with cause-related issues. Although non-profit organizations should do a thorough job in establishing their scope, they may also be well-advised to ask good questions of potential partners. Perhaps, on the surface, an inquiry may not appear to be a “fit” into existing programs, but may well lead into a more fulfilling partnership in the long run.
We’d probably all benefit from being more open minded in dealing with partnerships. Yes, we need to keep the integrity of our programs and initiatives in mind. But maybe, just maybe, some of our best strategic partners may come from like-minded organizations operating in a mutually beneficial space if we could remove the blinders long enough to recognize one another.
What’s your take? Is it OK for companies to “leapfrog” non-profit organizations and establish their own programs? What can non-profit organizations do to be more visible to potential corporate partners? What are other benefits to partnering with non-profit organizations for a company?
Image credit to beketchai.
Megan,
VERY interesting blog post…I am so in the silo of the nonprofit world that I was only aware of why companies can be difficult partners. But this exposes a whole other side of the issue that makes complete sense. Many of our nonprofit/community benefit organizations are political monsters loaded with verbal land mines at every turn. As I was reading your post, I could well imagine why a company might just bolt for the door screaming, “Run for your lives!” after just beginning a conversation with an organization.
But I also have to believe (and have certainly seen with my own eyes) that just like there are extraordinary companies that get exactly why they should be involved in ethical issues and community benefit activities, there are also wonderful nonprofits that are doing extraordinary work and are on many levels, a delight to work with. Perhaps over time, those more nightmare-ish organizations will be aloud to fade away and those extraordinary ones will drown in all of the wonderful partnerships with imaginative and creative and ethical companies who support their work. Fantasy? Perhaps…but maybe if enough of us insist that it is possible, we’ll move a little closer to it!
Sorry to have written my own blog post about this
Guess I am pretty passionate about this! Thanks for a thought provoking piece! (As usual)
Great comments, Heidi. I definitely think each side can be difficult and I guess that goes without saying, right?
At the end of the day, I wish there were a better way to connect like-minded organizations from corporate with those in the non-profit world. I understand if there are reasons to create your own cause-based foundation, but I find it a shame if two potential partners blaze their own path needlessly.
Why is it always the nonprofits fault or issue? Companies can be extremely difficult, demanding and lacking in their own role in the partnership. They may not bring strategic thinking to the table and simply think “writing a check” is good enough. Not to mention 17 page grant requests they often require a nonprofit to fill out-sometimes at the last minute. Can you imagine a nonprofit requiring the company to fill out 17 pages on why they would make a good partner, and oh, by the way, I need the check tomorrow? What if nonprofits leap frogged a company and started making their own products? How do we require nonprofits to collaborate yet we don’t ask all the burger joints to do the same? But they’re providing the same service?
It’s time we thought bigger! On both sides.
Rhonda
Thanks for your comment, Rhonda.
I don’t think this is an issue of placing blame on one party or another, though certainly there can be complications and unrealistic expectations around partnering on both sides.
One thing I purposely left out of this post was the hybrid that is the social entrepreneur, who I think, IS leapfrogging the company and producing their own product…for good.
I personally think all organizations would be better served if they did collaborate. Ironically, I’m penning a post right now on a burger joint that does a bang-up job in doing so.
Check back next week to read more.
Thanks for your comment!