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I recently settled in for a coffee with the development director from a local cultural institution. After the requisite niceties, the conversation predictably turned to “the ask”—could my company provide financial support for the upcoming season?
With little hesitation, I delivered the hard truth—no, and there would be no further consideration without a significant change in how the organization requested funding.
Flash back nearly a year earlier, when I had a similar conversation with the same group. I explained that philanthropic requests had to align with our company’s mission, our specific target areas for funding and had to be advantageous for both organizations. Heads nodded, promises were made and then radio silence ensued.
Was this overly harsh during a time when many nonprofits teeter on the edge of existence? Absolutely not. The era of giving without clear expectations for mutual benefit is ending.
A NEW EXPECTATION
“Corporate giving is undergoing a dramatic shift. Expectations are changing from transactional relationships to partnerships, with the company and recipient collaborating for success,” notes Mark Shamley, president and CEO of the Association of Corporate Contributions Professionals.
While this alteration may be evident to PR professionals, it can be more of a challenge to peers in corporate giving roles who—for decades—have been stewards to community and industry simply because it was “the right thing to do.”
This, of course, only exacerbates the problem. So what can communications practitioners do to steer their contributions colleagues and not-for-profits down a new path?
â–¶ Define Your Giving Priorities. In the absence of clear direction as to what types of causes you’ll support, your dollars will be dispersed over a too-wide range of groups. This weakens the impact your gift has on reputation and provides too little concentration of dollars for sustained impact.
â–¶ Consider Your Desired Outcome. What do you want to accomplish with your grant or volunteer commitment? Both the funder and recipient should gain from the partnership, although perhaps using different metrics to determine success. Don’t forget to specify a time frame—short-term funding means little if your outlook spans multiple years.
â–¶ Consult Your Finance/Tax Colleagues. Pull your company’s finance group, especially its corporate tax experts, into the planning process. Depending on how tangible you expect your returns to be, that could influence your tax strategy, or vice versa. Don’t wait until the program is already running to surprise the finance team—a surefire way to gain critics.
â–¶ Openly Share Your Expectations with Nonprofits. Once you’ve got your house in order, resist the urge to make potential partners guess your intentions. This isn’t an exercise in mind reading—you want applicants to be successful. Lay out your grant criteria online, and make sure that you review it in detail during exploratory meetings with nonprofits.
â–¶ Provide Assistance in Creating a Proposal. When strong potential partners emerge, don’t turn your back until the proposal hits your inbox. Instead, offer to be a sounding board throughout the process, giving guidance as to what aspects of their plan may or may not be acceptable, and which may require additional strategic thinking. This could be the beginning of a partnership, so start off on a good foot.
â–¶ Stick to Your Guns. Unfortunately, some proposals just don’t make the cut, whether for a lack of strategic alignment, inadequate resources for sustainable results or other criteria that remain unmet. While most can be reviewed and politely declined, there will always be a few that seem to merit special consideration.
A word to the wise—don’t compromise with regard to your expectations and criteria. It can ruin your chances to harness the power of your company giving.
SENSE OF PURPOSE
Curt Weeden, the author of Smart Giving Is Good Business: How Corporate Philanthropy Can Benefit Your Company and Society (to be published this March), sums up the “new normal” for corporate giving: “A business has an obligation to align its contributions strategy with its mission. Even when that alignment is in place, there will be hurdles in the way. However, if charitable intent and business purposes are in sync, clearing those hurdles yields a big-time payoff for both society and the private sector.” PRN
CONTACT:
Mike McDougall, APR, is VP, corporate communications and public affairs for Bausch + Lomb. He can be reached at [email protected].