The Benefits of Nonprofit-Corporate Partnerships
Why should your nonprofit partner with a for-profit company?
There’s one obvious benefit to nonprofit-corporate partnerships: every nonprofit could use financial support from a partner in the for-profit sector. But, as with any relationship, it can’t be just about the money.
The value in nonprofit-corporate partnerships
Nonprofit-corporate partnerships are a two-way street; your nonprofit both receives and provides value.
Fortunately, along with the rapid growth of the nonprofit sector in the U.S. over the past three decades, there has also been a distinct consumer shift: people want their purchases to have a positive social impact. Now more than ever, consumers want to engage with companies that are doing good in the world. This means that companies want their brands to be understood as contributing to the greater social good—in an authentic way.
Thus, socially responsible consumerism becomes the foundation for a meaningful relationship, where each party contributes to the other’s success.
Take, for example, Verizon’s ad campaign during the Super Bowl in 2019. It features a documentary-style scene of NFL coach Anthony Lynn being reunited with the first responders who saved his life. The ad is deeply emotional and uplifting.
Back on Twitter, Verizon’s campaign has a clear Call-to-Action. Not to ditch your provider and switch to their network, but to retweet the video. For each retweet, they’ll donate $1 to the Gary Sinise Foundation (which provides programs that benefit first responders) up to $1.5 million:
RT & we’ll donate $1, up to $1.5M, in support of first responders to the @GarySiniseFound (1.18–2.8). When Anthony Lynn was involved in a near fatal hit & run, first responders were there to answer the call. #AllOurThanks https://t.co/vBEE47goea
— Verizon (@verizon) February 4, 2019
The benefits to the Gary Sinise Foundation are clear. They receive financial support for their programs directly from Verizon and also gain exposure to new audiences, which means they end up with a huge new base of potential donors.
But successful nonprofit-corporate partnerships are symbiotic; so what does Verizon get out of the deal?
By partnering with a nonprofit, they’re able to communicate their values and shape how their brand is perceived. Their story is transformed; they’re not just selling phones and data plans! Through association, Verizon is about philanthropy, supporting first responders, and helping save lives. And, because of how they’ve architected their Twitter campaign ($1 = 1 share), they’ll reach hundreds of millions of consumers on social media organically while sharing this message. As in: without paying for more ads. It’s genius.
So the next time an NFL fan or Twitter peruser needs a new cell phone plan (perhaps when they’re tired of waiting on hold with customer service for their current provider) and thinks, “I wish there was a better company out there to give my money to!” …they’ll think of the cell phone company that’s saving lives: Verizon.
At the end of the day, both nonprofit and corporate partners stand to benefit financially from the partnership.
Other examples of mutually beneficial nonprofit-corporate partnerships
You don’t have to be a large organization partnered with a national corporation. Instead, start by thinking about local partnerships and what your nonprofit can bring to the table for local and small business partners.
Your mission should reflect the values they embrace. And they should be able to provide you with support through:
- In-kind donations (like food and beverages for your next event). Local restaurants and breweries may be willing to partner with your organization, and if you have a local Trader Joe’s you can speak to their Donations Coordinator about an in-kind contribution.
- A major donation or direct sponsorship. Our partners at YES Nature to Neighborhoods were able to secure sponsorship for their benefit from a local real estate company. The contribution helped them launch a successful fundraiser, and by featuring the sponsor at the event and on social media, they’re helping their partners at The Grubb Co. build a positive reputation in the community:
Through a successful partnership, both parties can build brand awareness and credibility. Take the Southern Nevada Association of Women Attorneys and their partners over at Nevada State Bank (whose tagline reads: “It matters WHO you bank with.”)
By promoting sponsors on their website, SNAWA helps businesses like Nevada State Bank keep their promise to support the community. Visitors on their website, who value career advancement for women, will attribute those values to the bank’s brand. The feature also signals to potential sponsors that supporting their scholarship fund is a worthwhile investment:
Knowing these benefits, there are some important things to keep in mind when pursuing partnerships:
- When approaching potential partners, make sure to clearly articulate the benefits of the partnership from their perspective.
- Be thoughtful; just as you reflect a corporate partner’s values to their audience, your corporate partners will reflect your values as a nonprofit to your supporters. Your values should align and there should be no conflicts of interest.
- Be creative. While some companies will have programs for partnership in place, you may need to come up with your own pitch. Carefully think through all the ways that your partnership will serve both of your long-term goals.
In closing, there are some good reasons for your nonprofit to pursue a partnership with a for-profit business. You can gain needed funding, build awareness, and strengthen community ties. But it’s important to be thoughtful and find a partner who truly shares your values.
It’s good to know that consumers want to associate with companies that are doing good in the world. I’m trying to find a donation opportunity where I can help our local town in some way. I’ll be sure to find a business that helps with some sort of animals or children this month.