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

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Amy NisensonNon-Profit Consultant and
Executive Director, The Mary Morton Parsons
Foundation
Cultivating Corporate Partnerships and
Sponsorships

• Nonprofit Learning Point
• October 30, 2015

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Your Objectives

• What do you hope to learn from this class?

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Course Objectives

• 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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Course Objectives

• 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 dont 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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WHY DO CORPORATIONS GIVE?

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

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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 companys
  annual budget

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HOW DO CORPORATIONS GIVE?

• 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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HOW DO CORPORATIONS GIVE?

• 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 organizations systems
  and operations which strengthen ability to serve
  clients)
• Awards
• Capital
• Challenge and matching grants

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TYPES OF CORPORATE SUPPORT

• 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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TYPES OF CORPORATE SUPPORT

• 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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TYPES OF CORPORATE SUPPORT

• 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 employees gift
  to nonprofit)
• Volunteer grants

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Employee driven giving

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

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Employee driven giving

• 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 driven giving

• 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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Employee driven giving

• 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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Employee driven giving

• 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 driven giving

• EMPLOYEE GIVING PROGRAMS
• Matching gifts
• Dollars for Doers or volunteer grants
• Hardship and disaster relief funds

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Employee driven giving

• 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 WANT THEIR PHILANTHROPY TO BE
STRATEGIC

• Corporations are strategic in two ways--
• Results driven giving
• Market driven giving

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Results driven giving

• Top of the House sets guidelines and focus
  areas
• Has greater impact
• Is more focused 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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Research tips and Techniques

• 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
• BBT
• BonSecours
• Note 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.
  Dont just go straight to the top! Dont 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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HOW DO YOU APPROACH A CORPORATION?

• Do your homework before applying
• Know funding priorities
• Know deadlines
• Know dollar ranges (dont ask for unneeded
  dollars be realistic!)
• Know other non-profit relationships the
  corporation may have and why they are aligned
  with them
• Dont be discouraged if you dont get funded the
  first time. Try again and follow-up to see why
  you werent funded.

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HOW DO YOU APPROACH A CORPORATION?

• 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 organizations 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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HOW WILL THE FUNDER EVALUATE YOUR GRANT PROPOSAL?
What questions will they ask?

• 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?
What questions will they ask?

• 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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HOW WILL THE FUNDER EVALUATE YOUR GRANT PROPOSAL?
What questions will they ask?

• 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 wont appear
  together (i.e. especially financial institutions)
• Consider if there is a match between likely
  attendees and the corporations 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 opps

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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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Deeper corporate relationships

• 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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Deeper corporate relationships

• 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
• Certificationnonprofit 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 companys
  outlets as collection point for donations (i.e..
  Food Bank and Martins)
• 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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Deeper corporate relationships

• Examples of
• Mission Critical -United Way Womens Leadership
  Initiative
• Social ventures-Boaz and Ruth
• Cause Related-Campbells 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 opportunity

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Talking to the Funder

• Complete funding research before calling a
  potential funder
• Use the call to make sure you are a fit with the
  funders 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 years average grant
  amount to change?

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Cultivating Support

• Cultivate SupportDont Expect It!
• You DIDNT get the grant or sponsorship
• Contact the funder to see why you werent 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 wasnt a fit for funder
• Key pieces of proposal not included

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Cultivating Support

• Cultivate SupportDont 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. Dont 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. Dont wait until reports
  are due.
• If funder doesnt 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
• amy.nisenson_at_gmail.com
• [phone]