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Philanthropic Jazz

New Year- New Alliances

Creating a mutually beneficial, revenue-increasing affiliate program is a valuable business strategy in for-profit ventures. What can nonprofits do to harness the power of partnerships to increase funding and donations?

Although many non-profits receive government grants, sometimes it is not enough to cover the cost of operations. Support from corporate sponsors can help you run your nonprofit and put more money toward your mission. By definition, a corporate sponsorship is a financial payment by a business to a nonprofit with the expectation that their contribution will be acknowledged in the nonprofit's activities, programs and/or events.

This type of cause marketing is not an affiliate program. Since they can't expect any direct financial return, what does your sponsor get out of the relationship? Their brand earns a sense of dependability for their products and services and status as a socially responsible company-both of which can increase long-term sales and sustainability. Ultimately, your sponsors benefit by connecting themselves to an organization that is doing good in the world while you boost your donations and visibility.

Many nonprofits are hesitant to engage in this type of partnership because they fear it may become a liability in the future. Partnering with an unethical business can certainly damage your nonprofit's reputation. While for the most part there is a fundamental difference in the values of nonprofit and for-profit organizations, a shared mission and creative marketing/fund-raising efforts can create endless opportunities for both groups.

For example, Ben & Jerry's has created symbiotic relationships with various nonprofits through their socially responsible programs and promotions. Aside from the sizable financial contributions Ben & Jerry's makes on a continuing basis, they also work with active nonprofits to promote direct community progress. Through the Partnershops Program, various nonprofit groups around the country—including the Latin American Youth Center in Washington, DC—run franchise Ben & Jerry's stores, providing jobs and educational opportunities to local youth. The corporation still receives profits from their sales while simultaneously supporting social change.

Similarly, Target partnered with band Pearl Jam and eco-friendly clothing designer, Loomstate, to create an exclusive album t-shirt to be sold in select Target stores with all proceeds going to Feeding America, the nation's leading domestic hunger-relief charity. The promotion (and their status as a socially responsible corporation) allowed Target to access exclusive sales to the album while supporting a social cause. The creative promotion also introduced them to new partnerships (including an ongoing one with iTunes) and positioned them as a leader in innovative offers. As Jerry Greenfield says, "If you open up the mind, the opportunity to address both profits and social conditions are limitless."

The first and most important thing when choosing a corporate sponsor is to do as much research as possible to ensure you are partnering with a trustworthy company. While they can expect to enhance their brand image and potentially increase revenue from your partnership, your core values and belief in your cause should be in alignment. Thorough research also positions you as a knowledgeable and attractive partner to your ideal sponsors-you are aware of the values and practices of their company and can speak with familiarity about their products and services.

Once you have identified favorable partnerships, be sure to create a concise plan including clearly-defined marketing strategies (any promotions, new products, etc. you are proposing). Paint a picture for the business of what your nonprofit accomplishes and how that may impact their ideal clients. At the outset, establish boundaries of what your organization will and will not do to promote their brand.

Finally, be sure to keep the relationship on track by continuously evaluating the benefits to your nonprofit and the for-profit venture. It is up to you and your sponsors to determine the success you get out of your partnership. For many nonprofits, the biggest challenge is identifying partnerships that benefit the organization without compromising values or contradicting the mission. Attract your ideal sponsors by doing the research and finding a shared vision to create positive and mutually-beneficial alliances.

Ready to create more powerful partnerships this year?

The National Council of Nonprofits now offers a Toolkit on Corporate Sponsorship to help you get started.
(http://www.councilofnonprofits.org/?q=corpsponsorshiptoolkit)