Amy Nisenson Non-Profit Consultant and Executive Director, The Mary Morton Parsons Foundation...

Amy NisensonNon-Profit Consultant and Executive Director, The Mary Morton

Parsons Foundation

Nonprofit Learning Point

October 30, 2015

Cultivating Corporate Partnerships and Sponsorships

Your Objectives

What do you hope to learn from this class?

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Understanding trends in corporate philanthropy

Why and how corporations give

Different types of corporate support

How do you search for corporate support

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Developing an effective proposal for grant money

How corporate funders evaluate your proposal

Corporate sponsorships

Developing an effective proposal for sponsorship

money

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2014 contributions: $358.38 billion by source (in billions of dollars – all figures are rounded)

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2014 contributions: $358.38 billion by type of recipient organization (in billions of dollars – all figures are rounded)

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Program Area Definitions

Civic & Public Affairs: contributions to justice and law, state or local government agencies, regional clubs and fraternal orders, and grants to public policy research organizations.

Education/K-12: contributions to K-12 institutions, education-related organizations, and scholarship and fellowship funds for K-12 students through intermediary organizations and other education centers, foundations, organizations, and partnerships.

Community & Economic Development: contributions to community development (minority businesses/economic development councils), housing and urban renewal, grants to neighborhood and community-based groups.

Education/Higher: contributions to higher educational institutions, education-related organizations, and scholarships and fellowship funds for higher education students through intermediary organizations and other education centers, foundations, organizations, and partnerships.

Culture & Arts: contributions to museums, arts funds or councils, theatres, halls of fame, cultural centers, dance groups, music groups, zoos, aquariums, and non-academic libraries.

Health & Social Services: contributions to United Way and other workplace giving campaigns and grants to local and national health and human service agencies, hospitals, agencies for youth, senior citizens, including those concerned with safety, family planning, substance abuse, and disaster relief.

Environment: contributions to environmental and ecological groups or causes including parks and conservancies.

Other: contributions that don’t fall into any of the seven main beneficiary categories or for which the recipient is unknown, including disaster relief.

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Recent changes affecting giving to nonprofits

Economy has had a profound effect on philanthropy

• Donors want accountability

• Donors want nonprofits to implement best practices

• Less dollars to give out-looking for less duplication and more collaboration

• IRS pushing on nonprofit sector to become more results driven and accountable (changes to 990)

• Donors (corporate) offering other resources besides cash-intellectual/technology

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Recent changes affecting giving to nonprofits

• Donors are recent business owners and leaders

• Donors are younger than before when becoming philanthropists (used to community involvement)• Steve Case• Mark Zuckerberg

• Donors are considering grants as “investments”• Donors expect that there be a Return on Investment

(ROI)• Donors want to apply analytical thinking to gift

giving –looking to “move the needle”• Promise Neighborhood

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WHY DO CORPORATIONS GIVE?

Customer perspective…..

• Increase brand awareness/recognition

• Improve corporate image/reputation

• Increase customer loyalty, consumer purchasing and investment decisions

• Build recognition as good corporate citizen

• Address key societal issues

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Company perspective….

• Reputation Building• Improving employee morale• Retention and new employee recruitment• Being a neighbor of choice• Brand enhancement

WHY DO CORPORATIONS GIVE?

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WHAT IS THE “SWEET SPOT” FOR CORPORATIONS AND PHILANTHROPY

Sweet Spot

Employee interest

Customer interest

Community needs

Business interests

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Exercise

Art Project:

In Small Groups, Draw a Picture of What Support

From Corporations

Means

Without Using Any Words

(10 minutes)

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HOW DO CORPORATIONS GIVE?

Direct Corporate Giving Programs:

• Grant making programs established within the company

• Expense is planned as part of the company’s annual budget

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Corporate Foundations:

• Company-sponsored

• Private foundations that get its funds from the corporation

• Usually a separate, legal organization subject to same rules and regulations as other private foundations

• Endowed or pass-through

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Corporate sponsorships

•An arrangement between a company and a not-for-profit organization, whereby the company provides funds, goods or services, in exchange for greater exposure

•Financial support of a project or property by a corporation in exchange for publicity and other benefits associated with the property

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TYPES OF CORPORATE SUPPORT

Grants ― Programmatic― Capacity-Building (improve organization’s systems

and operations which strengthen ability to serve clients)

― Awards― Capital― Challenge and matching grants

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In-kind contributions—(not cash)― Product or service donations― Loaned equipment and facilities― Loaned Executive programs

Specific examples:― Airline miles for staff travel― Secure ad space

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Pro Bono― Professional services undertaken voluntarily― No payment exchanged― Uses specific skills of the professional (s)

Specific examples― PR firm donates time and expertise― Website design

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Employee involvement― Encourage employees to volunteer in their

community― Paid release time for employees to volunteer― Corporate executives serving on nonprofit boards― Matching gifts (company match of employee’s gift to

nonprofit)― Volunteer grants

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“Programs and policies that encourage and support employee involvement in the causes that mean the most to them.”

Employee driven giving

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PAID TIME AWAY FROM WORK

• Encourage participation in community service activities

• Encourage employees to become individual philanthropists with their time, skills, finances

• Educate employees about benefits and responsibilities involved in philanthropic work


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EMPLOYEE WORKPLACE CAMPAIGNS

• Employee Choice (payroll deduction, one time deduction, personal check)

• Allow for greater participation and satisfaction

• Companies can brand campaign as own

Examples:

United Way, America's Charities, American Heart, American Cancer, Community Health Charities, Combined Federal Campaign


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Board Service

Benefits of serving on Board from Community Perspective

• Allows for more effective boards leading the nonprofit sector

• Gives nonprofits access to broad range of skills and expertise


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Benefits of serving on Board from Employer Perspective

• Exposes employees to new leadership opportunities

• Encourages employees to develop new skills

• Gives employees real community connections

• Gives employees expanded professional networks

• Gives company and employee high visibility in community


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EMPLOYEE GIVING PROGRAMS

• Matching gifts

• “Dollars for Doers” or volunteer grants

• Hardship and disaster relief funds


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EMPLOYEE VOLUNTEER OPPORTUNITIES

• Team-building opportunities

• Increase community collaborations

• Business networking opportunities

• Leadership training opportunities

Examples:

• Lead/organize Habitat Build, Food Drive, etc

• Serve on non-profit board


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Corporations are strategic in two ways--

• Results driven giving

• Market driven giving

CORPORATIONS WANT THEIR PHILANTHROPY TO BE STRATEGIC…

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• “Top of the House” sets guidelines and focus areas

• Has greater impact

• Is more focused giving

Results driven giving

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HOW DO YOU GO ABOUT FINDING CORPORATE GRANT DOLLARS?

Research and find your fit:

• Recognize that most corporations are looking for non-profits that are located in the main areas where they operate.

• Recognize that most corporations are looking for a business alignment (i.e. Banks are often looking for organizations that give them CRA credit).

• See if the corporation has specifically identified a cause that they want to get behind (i.e. Performance Food Group has gotten behind hunger issues).

• See if the corporation has funded other non-profits similar to yours in mission and vision; look at dollar amounts here as well.

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Review funders guidelines

Some funders issue proposal guidelines and application procedures

(deadlines, geographic limitations, etc.)

On-line resources to find guidelines (print or download application

forms and instructions)

Contact the funding source

Set up an initial informational interview/visit

Use connections to get an introduction (if appropriate, send a Letter of

Inquiry)

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Corporations that give in the Richmond area

Altria SunTrust Dominion Bank of America Genworth Financial Markel Corporation Verizon Communications Comcast CJW Medical Center Owens & Minor DuPont Anthem MeadWestvaco Towne Bank First Tennessee

Nationwide Insurance Northrop Grumman Wells Fargo Universal Union First Market Bank Media General CarMax LuckStone CapitalOne BB&T BonSecoursNote: This is not meant to be a complete

list; there may be corporations not included in this list.

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HOW DO YOU APPROACH A CORPORATION?

• Just as you work to cultivate individual support; work to cultivate support from corporations.

• Get to know folks in corporate philanthropy. Don’t just go straight to the top! Don’t be afraid to make inquiries about funding priorities, process, deadlines, etc.

• Check with your Board members to see what relationships they have with the corporations you are soliciting. Use these relationships appropriately!

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• Do your homework before applying:

― Know funding priorities

― Know deadlines

― Know dollar ranges (don’t ask for unneeded dollars – be realistic!)

― Know other non-profit relationships the corporation may have and why they are aligned with them

• Don’t be discouraged if you don’t get funded the first time. Try again and follow-up to see why you weren’t funded.

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• Know the organization

• Be prepared

• Pay attention to the details

• Information s/b simple, brief yet cover the basics (who, what, where, why)

• Know the key players in each corporation (“your first line of contact should be through the local corporate giving office”)

• Listen and ask questions

• Be innovative

• Stay current with trends/best practices

• Collaborate where possible with other organizations

• Care about our volunteers and don't forget to say thank you!

• Proactively solicit feedback about the partnership to ensure expectations were met

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READINESS FOR CORPORATE FUNDING…

Do you have an established marketing effort in place? (e-mail, website, events, newsletters, etc)

What is your organization’s demographics? Are they a match for a potential corporation?

Have you worked with corporate sponsors before?

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DEVELOPING AN EFFECTIVE GRANT PROPOSAL

Once you have determined that you may be a match for the corporation

• Make a case for support and be sure you align needs with the focus areas

• Be clear when you state your goals and objectives

• Is your project realistic and well planned? Is your timeline achievable?

• Show your record of success; be sure to indicate who else is funding your project/organization

• Do you have a measurement process in place?

• Did you ask for a realistic dollar amount to be funded?

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HOW WILL THE FUNDER EVALUATE YOUR GRANT PROPOSAL?

What questions will they ask?

• Does the proposal/request match interests, priorities, guidelines and agenda?

― Areas of interest

― Geographic focus

― Level of entrepreneurialism

― Type of funding being sought (program, capital, seed, endowment)

― Specific goals & objectives

• Does the proposal offer appropriate recognition to the corporation?

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• What does the organization want to accomplish?

― Mission driven

― Clarity of vision and purpose

― Specific and realistic plan

― Measurable milestones & results

― Is the program sustainable?

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HOW WILL THE FUNDER EVALUATE YOUR

GRANT PROPOSAL?


• Will the program, service, project, or initiative have genuine impact/make a real difference?

— Will it benefit a significant number of people?

— Can it make a “critical” difference for a certain group of people?

— Does if address issues that are symptoms or a systemic “root cause”?

— Will it help build human or social capital, or community capacity?

— Can it help improve quality of life?

• Is there any other organization providing this service in the community? If so, are each addressing a niche or should you be collaborating or merging?

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• Does the organization have the capacity to accomplish what it wants to do?

― Leadership

― Staff

― Track record for results

― Financial health

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CORPORATE SUPPORT-SPONSORSHIP DOLLARS

― Dollars available from different lines of business (i.e. Marketing) to support events such as dinners and other fundraising types of events

― Usually requires a letter or formal application (each corporation may have different requirements)

― Requests should be received at least 45-60 days prior to the event

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CORPORATE SUPPORT-SPONSORSHIP DOLLARS

― When submitting requests, be clear about benefits and deadlines

― Pay close attention to who else you are soliciting-many corporations won’t “appear” together (i.e. especially financial institutions)

― Consider if there is a match between likely attendees and the corporation’s target audience

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WHAT DO CORPORATIONS CONSIDER WHEN LOOKING AT SPONSORSHIP

• Brand recognition

• Drive revenue

• Customer/Client entertainment

• Employee involvement

• Stakeholder engagement

• Good corporate citizen

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TYPES OF CORPORATE SPONSORSHIPS

“Marketing-driven corporate sponsorships”. ― The investment a corporation makes in exchange

for real value that helps them meet business or marketing goals.

― A cash and/or in-kind fee paid to a property (sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property.

― Typically includes quantifiable components and benefits.

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TYPES OF CORPORATE SUPPORT-SPONSORSHIPS

Specific outcomes― Increase sales or product or service before,

during, or after an event― Develop influence with attendees at event― Client entertainment― Goodwill ― Recruiting talent

**Consider the value of your sponsorship opportunity!

Work with the “Sponsors” to craft the opportunity!

Measure the return on investment!

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TYPES OF CORPORATE SUPPORT-SPONSORSHIPS

Assets to consider with Market-Driven Sponsorships― Communication materials-brochures,

flyers, posters, invitation, etc.― PR opportunities-press releases, press

conferences, photo-ops― Ad opportunities-print, radio, tv, web-

based, outdoor― Onsite visibility-naming, banners, booths― Event component-naming rights, hospitality

tours― Promotional opportunities-use of logo, pre

and post events― Deeper access with audience-use of or access to

database, special offers and networking opps47

Example of sponsorship Exercise

Review the sponsorship materials in hand out

Break into 4 small group and discuss a potential sponsorship that you could put together

Map out details and present to the group

20 minutes

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Deeper corporate relationships

Mission Critical Partnerships—

Partnerships between nonprofits and businesses where corporate impact or partnerships is central to the mission of the nonprofit organization

Determines the nonprofit operational structure

Often, the corporate mission is positively transformed through the nonprofit partnership

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Social Venture—

Entrepreneurial nonprofits build a business as an earned-income revenue strategy

Objective is to solve social problems and provide social benefits.

The social venture may generate profits, but that is not its focus. Rather profits are a possible means to achieve sustainability in providing a social benefit.

The problems addressed by social ventures cover the range of social issues, including poverty, inequality, education, the environment, and economic development.

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Cause-related marketing-― Transaction based relationship between a business

and a nonprofit whereby product sales or consumer activity such as taking a test drive, opening an ira account, trigger a donation to the nonprofit.

― Campaigns typically run between 6 weeks to 3 months

― Money spent on cause marketing is expected to show a return on investment

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Deeper Corporate Relationships

Cause-related marketing-Types― Certification—nonprofit grants seal of approval to

branded product or service that complies with standards― Co-Branding-pairing two or more branded products or

services to form one product (i.e.. Affinity card)― Corporate Volunteerism-partnership based on network

of employees (Go RED, Heart Walk)― Fundraising partnership-use of a company’s outlets as

collection point for donations (i.e.. Food Bank and Martin’s)

― Licensing-relationship between manufacturer and a property in which property receives royalty

― Promotional Partnership-company or media outlet promotes cause and message (promos cause brand and message to get visibility and halo effect)

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Examples of :

Mission Critical -United Way Women’s Leadership Initiative

Social ventures-Boaz and Ruth

Cause Related-Campbell’s Soup and pink and white labels!

Local examples

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Why Corporate SPONSORSHIPS Partnerships?

89% of Americans believe that corporations and nonprofits should work together to raise money and awareness for causes (Cone, Inc., 2004)

Nonprofit organizations are looking for new sources of revenue, enhanced visibility, expertise and creative ways to promote their messages and advance their missions

Corporations are constantly seeking innovative ways to differentiate their products and services in sustainable ways (http://www.independentsector.org)

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What do SPONSORSHIP Partnerships Look Like?

Philanthropic Transactions A business donates funds, goods or services to a

nonprofit Marketing Transactions

A business affiliates itself with a nonprofit to improve its marketing position

Operating Transactions A nonprofit helps a business improve its capacity to

produce goods or services more competitively(Sagawa, 2000)

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Corporate Benefits Stronger Community Relationships

Teambuilding Opportunities

Acceptance of Product as an Industry Standard

New Customers

Better Public Image

Improved Quality of Life in Community

Increased Sales

Increased Attention

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WHAT CAN YOU OFFER A CORPORATION?• Recognition in some way

— Newsletter

— Website

— Annual report

— Invitation/Save the Date Card/Program

• Employee engagement opportunities

— On-going activity

— One-time; high visibility

— Increase collaboration with others in community

— Team-building opportunity

— Skill-building opportunity

• Board Seat for top executives or emerging leaders

— Business networking opportunities

— Leadership training opportunity57

Talking to the Funder

Complete funding research before calling a potential funder

Use the call to make sure you are a fit with the funder’s objectives and goals

Let the funder know that you have done your research

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Talking to the Funder

Sample questions to ask the funder…

How many new awards do they expect to make in this program area?

Does the program provide one-time only support or do they offer other funding opportunities in the future?

Would they be willing to review a draft proposal in advance of a submission?

What is the review process? Does the funder expect last year’s average grant

amount to change?

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Cultivate Support…Don’t Expect It!

You DIDN’T get the grant or sponsorship

Contact the funder to see why you weren’t funded. Ask for a critique!

Do not get discouraged. Sometimes you have to submit more than once to get funded.

Common reasons for decline:

Similar proposals being considered at same time

Limited funds

Proposal wasn’t a fit for funder

Key pieces of proposal not included

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Cultivate Support…Don’t Expect It!

You received the grant or sponsorship

Congratulations!

Say thank you!

Invite funder to see your work (may want wait until implementation of project or some results are achieved)

Ensure you follow all of the reporting requirements Be accountable Meet deadlines If something changes with regard to the proposal, contact the

funder. Don’t wait until reports are due.

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Cultivating Support

Ensure you follow all of the reporting requirements

Be accountable

Meet deadlines

Provide an update on how many you served, the activities, how the

outcomes are going

If something changes with regard to the proposal, contact the funder.

Don’t wait until reports are due.

If funder doesn’t require a report, include update in final thank you note

*** No surprises!!!!!!

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Your Objectives

How did we do?

What did we learn?

(Review objectives from the start of the class)

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QUESTIONS….

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THANK YOU!

Amy Nisenson

[email protected]

(804) 307-4653

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Amy Nisenson Non-Profit Consultant and Executive Director, The Mary Morton Parsons Foundation...

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