Nonprofit corporate partnerships must benefit both a nonprofit and its corporate partner in order to be successful. For a corporate organization, legitimate partnership or sponsorship opportunities come with tax benefits and may also form part of a business’s Corporate Social Responsibility (CSR) practice. The good news is that, for these reasons, there are plenty of companies willing to support your organization. All you have to do is find the right-fit partner.
Financial struggles are a reality for many nonprofits; making money and funding sources is a constant topic of conversation among nonprofit managers. Today, nonprofits are inundated with complex and redundant paperwork as they apply and report on grants. Moreover, restrictions on funding that dictate how donor funding is spent mean a lot of nonprofits spend most — if not all — grant monies on delivering services rather than making critical investments in their organizations.
As a result, many nonprofits lack resilience and are unable to grow over time. If your nonprofit organization feels financially hollowed out or is experiencing a high personnel turnover rate due to financial constraints, you might want to consider looking into corporate sponsorships. Beyond individual donations and grants, corporate partnerships can provide a reliable revenue stream that moves your organization closer to achieving its goals.
Successful Nonprofit Corporate Partnerships Align Brands and Missions
Securing nonprofit corporate partnerships may seem like a daunting task for smaller organizations. However, there’s a growing demand for companies to ramp up their focus on social responsibility. Businesses today are taking the lead and venturing into humanitarian projects from alleviating poverty to community development.
As a nonprofit fundraiser, your best bet is to seek out companies whose business objectives or company mission relate to your causes. And it’s just as essential to ensure their business practices align with your values. A poor partnership can damage your nonprofit’s image and reputation. It’s advisable to look into the company’s history, its modes of doing business, and its values. The right sponsorship can work wonders for your brand and increase your funding sources.
Because of the risk associated with partnering with for-profit organizations, it’s not surprising that some nonprofits choose to forego corporate sponsorships altogether. You can reduce this risk and bring in much-needed revenue without incurring overhead costs with some due diligence. The key is to ensure that the benefits to the corporate organization do not outweigh the benefit to the charitable nonprofit.
The benefits of nonprofit corporate partnerships include:
- Increased awareness around your mission and cause.
- A way to boost your organization’s credibility.
- Increased attention from the media and public, which can bring in more funding revenues
Simply put, corporate partnerships can help alleviate financial stress by providing flexible dollars and increasing your funding network.
Nonprofit Corporate Partnerships Diversify Your Revenue Streams with Recurring Giving
Examples of How Corporations Can Give Money to Nonprofits:
- A company can donate money to sponsor a program or event
- An in-kind sponsorship where the company donates goods or services for a program
- A media sponsorship that pays for the cost of promoting an event
- Corporate giving where companies match gifts when their employees donate to an organization
Consumers are more likely to buy from socially responsible companies. As a result, more companies are looking to partner with charities in the long term. Corporate philanthropy is a good source of support for new initiatives, special programs, and events. It’s a sustainable revenue stream that brings a modicum of stability and predictability to your finances. This way, you better estimate your income when it comes to planning and budgeting.
There’s no shortage of companies to work with. However, not every company will be a fit for your organization. As a nonprofit, your objective should be to build true partnerships rooted at the intersection of your values and those of your corporate sponsor.
If you’re interested in having a no-obligation conversation with us regarding the potential that your nonprofit has in securing a corporate partnership, reach out to us.
Our team would be happy to walk through some possible partnership scenarios with you.