October 16, 2006
COMMENTARY: Money should follow the brand | Businesses and nonprofits can create strategic partnerships for charitable giving
By Candace Sanborn
Partner, Encompass Marketing & Design, Auburn
I was recently sitting at a table during a business function listening to people lament the amount of charitable contribution requests their companies now receive on a regular basis. "It's doubled," said one woman. "I just don't have the time to go through all of them."
This is a story I hear consistently from my clients. The volume of requests they receive for contributions and sponsorships has increased in recent years as traditional funding sources have declined. Many businesses do not know how to handle these requests, since they have no criteria by which to process them and cannot afford to contribute to all of them. As a result, they usually support requests from people they know, mainly out of guilt, and refuse or ignore organizations with which they have no personal connection. Or they try to support too many organizations, giving each a small amount, which provides little visibility for the business and minimal help to the nonprofits.
On the flip side are the nonprofits, which are faced with declining funding from federal, state and local governments as well as philanthropic organizations. As a result, they must seek alternative sources of revenue, and their targets include businesses they think may support their work. Most nonprofits in Maine are small and their staffs have little training in fundraising. They spend time crafting long letters to a large prospect list, regardless of whether those businesses have any connection to the organization. They become like hamsters on a wheel, spinning round and round annually, trying to find money for their operations or events.
As a marketing consultant, I see both sides of this equation since I work with as many nonprofits as I do businesses. From my perspective, money is just part of the equation. The real issue lies in how these entities are viewing the fundraising or donation process. It shouldn't be about how much can be allocated to the "contributions" line in the budget, or how much is needed to fund next season's events. It's about branding.
Making a match
In today's world, businesses must communicate their brand in more creative ways. They must reach people where their hearts are. Nonprofits, too, must worry about branding, as they must differentiate themselves from similar entities to survive in an increasingly competitive environment.
Businesses and nonprofits can help each other by developing sustainable partnerships that are mutually beneficial. For their part, businesses need to determine their brand. For example, if the business is an insurance company selling personal policies, its brand may be "protecting families." As a result, the insurance company might contribute to causes or organizations that are about family protection, such as child safety organizations.
Once the brand is identified, a business must develop criteria to measure funding requests, such as determining the track record and fiscal solvency of the organization, then asking how this nonprofit differentiates itself and whether the relationship is mutually beneficial.
After a business has determined nonprofit partners, it also needs to develop a process to say a polite "no" to those organizations it is not funding. Negative news travels more quickly than positive news. A business doesn't want nonprofit employees out in the community talking about them in negative terms, saying, "They used to be such a supportive business, now they just don't seem to care."
At a minimum, the "non-funded" process should include determining who in the organization will answer requests, developing language to be used when saying "no," and identifying the timeframe and manner in which all requests will be answered.
For nonprofits, the equation is similar. They need to determine how much they need in donations and sponsorships and for what period of time they need it. They then need to do their homework on businesses whose brands would be an appropriate fit. This can be done through networking in the community and looking at company websites to see how they present themselves.
Nonprofits should approach businesses from a "what's-in-it-for-them" mindset, which needs to be much more than a logo on a program or banner and thanking them at the annual meeting. It should go much deeper, looking at ways to integrate human as well as financial resources on both sides so that the two entities become truly linked. In so doing, nonprofits will find that they spend less time spinning around on that hamster wheel and more time doing what they're there to do ˆ help people.
I was recently sitting at a table during a business function listening to people lament the amount of charitable contribution requests their companies now receive on a regular basis. "It's doubled," said one woman. "I just don't have the time to go through all of them."
This is a story I hear consistently from my clients. The volume of requests they receive for contributions and sponsorships has increased in recent years as traditional funding sources have declined. Many businesses do not know how to handle these requests, since they have no criteria by which to process them and cannot afford to contribute to all of them. As a result, they usually support requests from people they know, mainly out of guilt, and refuse or ignore organizations with which they have no personal connection. Or they try to support too many organizations, giving each a small amount, which provides little visibility for the business and minimal help to the nonprofits.
On the flip side are the nonprofits, which are faced with declining funding from federal, state and local governments as well as philanthropic organizations. As a result, they must seek alternative sources of revenue, and their targets include businesses they think may support their work. Most nonprofits in Maine are small and their staffs have little training in fundraising. They spend time crafting long letters to a large prospect list, regardless of whether those businesses have any connection to the organization. They become like hamsters on a wheel, spinning round and round annually, trying to find money for their operations or events.
As a marketing consultant, I see both sides of this equation since I work with as many nonprofits as I do businesses. From my perspective, money is just part of the equation. The real issue lies in how these entities are viewing the fundraising or donation process. It shouldn't be about how much can be allocated to the "contributions" line in the budget, or how much is needed to fund next season's events. It's about branding.
Making a match
In today's world, businesses must communicate their brand in more creative ways. They must reach people where their hearts are. Nonprofits, too, must worry about branding, as they must differentiate themselves from similar entities to survive in an increasingly competitive environment.
Businesses and nonprofits can help each other by developing sustainable partnerships that are mutually beneficial. For their part, businesses need to determine their brand. For example, if the business is an insurance company selling personal policies, its brand may be "protecting families." As a result, the insurance company might contribute to causes or organizations that are about family protection, such as child safety organizations.
Once the brand is identified, a business must develop criteria to measure funding requests, such as determining the track record and fiscal solvency of the organization, then asking how this nonprofit differentiates itself and whether the relationship is mutually beneficial.
After a business has determined nonprofit partners, it also needs to develop a process to say a polite "no" to those organizations it is not funding. Negative news travels more quickly than positive news. A business doesn't want nonprofit employees out in the community talking about them in negative terms, saying, "They used to be such a supportive business, now they just don't seem to care."
At a minimum, the "non-funded" process should include determining who in the organization will answer requests, developing language to be used when saying "no," and identifying the timeframe and manner in which all requests will be answered.
For nonprofits, the equation is similar. They need to determine how much they need in donations and sponsorships and for what period of time they need it. They then need to do their homework on businesses whose brands would be an appropriate fit. This can be done through networking in the community and looking at company websites to see how they present themselves.
Nonprofits should approach businesses from a "what's-in-it-for-them" mindset, which needs to be much more than a logo on a program or banner and thanking them at the annual meeting. It should go much deeper, looking at ways to integrate human as well as financial resources on both sides so that the two entities become truly linked. In so doing, nonprofits will find that they spend less time spinning around on that hamster wheel and more time doing what they're there to do ˆ help people.
Mainebiz web partners
Most Recent
Most Recent
Comments