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SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Key Behaviors in Successful Corporate Partnerships

In change management, Discussables, Research on May 9, 2011 at 12:34 pm

Key behaviors of successful NPO / Corporate partnerships

Continuing our series on Corporate Philanthropy, we take a look at what the key behaviors are that we see in  nonprofits who have developed partnerships that provide a strong, reliable and renewable revenue  stream?

1. They all have a Personal Relationship with the company leaders: As a personal investment, the requirement that we build meaningful dialogue and a unified voice in our efforts to identify opportunities for partnering is essential.  A relationship with our company partners is not a mail campaign.  It’s not a sponsorship pitch.  It is the same level of personalized cultivation applied to our individual major donors.

Getting to a partnership is a process. The flow from first connection (usually a gift of some sort) through partnership generally follows this route:  Transaction —–> Relationship—–> Information——> Partnership.   The relationship traditionally begins with a transaction of some sort: a sponsorship, a membership, a donation, a grant. Capturing the interests of the corporation and appropriately acknowledging and stewarding their generosity, a relationship is developed, where information is shared that further delineates the opportunities and shared values/goals of the two parties, which leads to a partnership.

It’s essential that you get comfortable with building personal relationships for funding or partnerships with your corporate donors. It’s crazy to even have to say that, but many fundraisers we have worked with are intimidated or lack dedication to the relationship building process.  Having a personal relationship with your corporate donors is the most important thing you can do to succeed.

2. Value proposition: Your Value Proposition is a definition of the key benefits you provide to the corporation, as a potential partner. Your client base, your donor market, your organizations core values, where do you operate, what is your brand, who do you influence?  These are value positions used to negotiate what is needed- cash, people, advocacy. Your Value Proposition is not what you do. Let me say that again: VALUE PROPOSITION does NOT equal WHAT YOU DO!

As evidenced in some of the past video and case examples, Nike and others did not partner with the chosen NPO’s because of what they did. What they did was important. And the outcomes were essential to the decision. But the value proposition of those organizations was the quantitative factors they bring to the table: who do they reach? who gives to them? where are they located? what community do they serve? What does their organization represent to the community?

Taking a value inventory will be critical. You can do this internally amongst your staff in a brainstorming session, or you can hire a facilitator to help in the process. Either way, having a very solid knowledge of  your value proposition is essential to successfully identifying and selling your organization to the right corporation for the right partnership.

3. Trust:  This is huge.  We think we know about trust, but in this sense we mean total and complete transparency, clear communication, and fulfillment. Trust is built slowly over time, as a friend recently reminded me. Its not an all or nothing position and it is only bestowed upon you or anyone incrementally with some consideration and time. It is also impermanent, it can change with the tide. Your organization must provide the framework within which that trust can be built with the corporation.  It may mean sharing challenges that you normally would not be compelled or comfortable in sharing about your programs and funding. If it knocks you out of the competition for the companies attention, so be it; better to have it done now, than after you have spent considerable time, resources and energy in building up the relationship. Trust also requires promises to be fulfilled. If you said you would do something with the funding, well you better have at it and show the results.  Things do happen that not goals off course or missed, but the frequent and candid communication you are engaged in, while building trust with your corporate partner, will have taken that into account.

4. Commitment: You know what they say- In breakfast, the chicken is involved, but the pig is committed.  Your commitment to long term strategies requires your organization to have a vision and a strategic direction. Commitment is not chasing the money; it is building on and resourcing the programs and services essential to your success. Nonprofits who have successful corporate partnerships have mission strategies that are imbedded in their DNA, they are clear and concise and tactical. They are committed to the outcomes, no matter what.

Following these four foundational behaviors will position your organization to be prepared for a myriad of corporate funding partnerships that provide long lasting benefits and outcomes.

NEXT POST: Developing a plan for your own corporate partnership program.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Corporate Goals in Philanthropy

In change management, Discussables, Research on May 2, 2011 at 10:44 am

What do Companies want from their Corporate Giving?

While a market presence and position is always a number one consideration for business, as they play out their social responsibility in the community, it isn’t necessarily the only factor behind their engagement. It’s important we are aware and respectful of all the driving interests, if we are to develop winning corporate partnerships.

Business benefits top the chart of priorities –

McKinsey & Company, a 75 year old management consulting firm which serves over 70% of the Fortune 500 companies listed today, surveyed 721 executives around the world—74 percent of them CEOs or other C-level executives, about corporate social responsibility. You can find the complete report here.

In their survey, McKinsey found that the vast majority of companies surveyed—nearly 90 percent—seek business benefits, such as customer acquisition and product distribution, from their philanthropy programs.

And some 80 percent of respondents say finding new business opportunities should have at least some role in determining which philanthropic programs to fund, compared with only 14 percent who say finding new business opportunities should have no weight.

So, marketing drives philanthropic partnerships… well, not so fast.

While marketing is an important driver, it should not be the sole driver or lead the development of a partnership between you and the corporation you are seeking to join forces with, as doing so may leave your reputation in question and will certainly not do anything to enhance business benefits for the company. Todays consumers are savvy, much more so than ever in history. For the marketing line to work in corporate/nonprofit partnerships, the relationship with the cause has to make Sense, it has to have Value and be Comprehensive and it has to have a Meaningful Outcome. The cures for cancer that exist which have spawned an ever growing trend of “Pink Washing”, is evidence of the many partnerships that just DON’T make sense  and result in outcomes that are anything but positive and customer building:

Remember “Bucketgate” May 2010? This drew much criticism and debate when it launched around Mothers Day.  Poor KFC, while they thought the pink would bring them notoriety, they didn’t expect the kind they received. And while any press may be good press, this just didn’t make sense, in any remote fashion. And the consumer saw right through it.  Sadly, Susan G Komens’ judgement and incentives were questioned as well.

If business benefits are a leading factor in a company’s drive to develop NPO partnerships through their giving, and pink buckets of chicken are the anti-concept, what does a philanthropic/socially responsible partnership look like?  Take a look at what might be a plausible and valuable brand and marketing position, from Nike.  The Nike Foundation created the ‘Girl Effect’ with critical financial and intellectual contributions by the NoVo Foundation and Nike Inc. and in collaboration with key partners such as the United Nations Foundation and the Coalition for Adolescent Girls. Here is their introductory video. What business benefits might they be seeking in support of this cause? What new business opportunities are they building? How does this make sense?

Not to be a KFC basher (I’ve eaten my share of chicken), but do we see the difference? This program does not appear to have the ‘slap it on a bucket’ approach of KFC. This philanthropic/socially responsible partnership ensures that market is not the key driver, but an integrated aspect of the partnership Nike has developed.

Local Impact is a close second in priorities for driving decisions on philanthropy

Executives overall say their companies are much likelier to address a broad mix of local issues with their corporate philanthropy programs than to address the social and political issues that they expect will affect shareholder value the most. In addition, interviews conducted suggest that companies see addressing local community needs as an indirect way to highlight a company’s good intentions to groups such as board members, shareholders, and regulators.

Chase Community Giving is an excellent example of a corporate giving program that was developed to have local impact. And in an interesting twist, Chase has combined their local perspective with crowd-sourcing: allowing the community to choose the charities which Chase will support.  By having the community vote on their charity of choice. Chase is empowering their community to lead their philanthropy. What is interesting about this, is that it make a case for and support the concept of, nonprofit accountability. If your NPO is not relevant in your community, if your community does not know about, care about or support your work….if you’re not doing good work and reaching meaningful outcomes- then you’re not a contender for Chase philanthropy. Their vetting process for impact is knitted into their philanthropy program.

Employee Base needs is the third critical goal of companies in their philanthropic giving –

Respondents in McKinsey’s survey most often cite employees as the stakeholder group important to the way companies think about their roles in society and as the group companies most often address with corporate philanthropy programs.

Employee satisfaction, retention, recruitment, all are critical business factors to corporations. By aligning their philanthropy with their employee base interests, they develop efficiencies in both lines. Often a company will have employee driven efforts, special programs which only employees can access for philanthropic engagement, pooled funds from employee activities, volunteer efforts devoted to employee outreach to the community and more directed at the interests and activities of employee groups.

A Recap –

The goals most often cited by corporations in their corporate giving strategies— 1. business benefits: enhancing brand, market reach; 2. working locally; and 3. building employee capabilities, improving employee recruitment and retention, all must be factored into the developed program you are building with your prospective corporate partner. If your program offers all three, its the trifecta of a corporate partnerhsip.

Who are the innovators?

Lets take a look at two award winners from the Committee Encouraging Corporate Philanthropy’s Corporate Philanthropy Day 2010. As you watch this, try to capture as many of the goals and key outcomes we just discussed, in the programs these two innovators have developed.

Pretty comprehensive right? And I can guarantee these were not created in a marketing office, but were organically developed between the company body and the nonprofit they had the closest relationship with.

C.R.I.B. Notes

In Retail ideas, strategic planning on April 26, 2011 at 3:52 pm

C.R.I.B. Notes:

10 Steps critical to launching (or enhancing) a Comprehensive, Responsive, Integrated, Balanced fundraising program.

More frequently, nonprofits are taking a step back and evaluating their fundraising programs. Philanthropy has become an essential income line for nonprofit organizations. No longer is it looked upon as an “Oh, and we have fundraising, whatever it brings in I hope it’s a lot” approach. Now, in response to recent economic influences and increased competition for donor’s attention, it is considered part of a critical and required stream of sustainable funding.

Sustainable funding is a concept widely demanded by donors, grantors and program evaluators. It is a measurable and indispensable part of your nonprofits business practice. But how to go about establishing a viable and sustainable fundraising program?

For a fundraising program to be sustainable it must be comprehensively designed, integrated throughout the nonprofit organizations strategy and work plan, responsive to donor and program needs and balanced to ensure its smooth transition through the many economic and societal impacts the organization will face in its lifetime.

Here are ten fundamental steps that must occur, which if performed successfully, will position your fundraising to be Comprehensive, Responsive, Integrated and Balanced.

  1. Review your organizations Mission/Vision: Why do you exist? What are you seeking to do and who else is doing it as well? Audit the communities’ needs and what other providers of service to those needs exist. Are others doing exactly what you are doing? Successfully? With funding? If you stand out alone in your field, congratulations! If not, but you can justifiably compete, consider collaborating. If you cannot justifiably compete, then consider amending or abandoning your mission focus.
  2. Determine your organizations Value Proposition: What real, fundamental and measureable value impact does your organization have on the community it serves? Your true value must be determined by evidenced based outcomes that you can point to in support of your organizations reason for being. People will not fund what you do, but they will flock to you if you can prove, with results, what changes you bring about that either affect their lives or align with their values. It can be as simple as ‘We lighten the spirits of 5,000 urban and suburban symphony members every year from May through October’; or as complex as ‘We reduced crime 34% in the last 18 months through our youth crime prevention mentoring initiative’. Either way, it will require some work on your part, to consistently and accurately determine your programs valuable achievements.
  3. Establish a financial forecast for your fundraising: Why do you need this money and what are you going to do with it? How much is needed and why that specific amount? Your donors will want this information to be valid, reasonable and transparent, if they are going to trust their investment with your organization and buy in to your ability to be successful in your efforts. No trust, no funding.
  4. Audit and Assess your prospective donor pool and determine your viability in fundraising and your financial capacity: Where will you be pulling your donors from? Internally? Externally? Warm prospects? Cold lists? Individuals? Corporations? Foundations? How much can convincingly be raised from these prospective donor pools? And how long will it take you to move your donors to achieve this amount of funding? Does the amount of money you can project to reasonably raise meet your needs, as outlined above? If not how will you fill the gap? Your board, not to mention your donors, will not want to fund a program set to fail because of poor long term financial planning. Have your ducks lined up and know how your money is going to come in, how much and from whom and how long to achieve your goal.
  5. Develop a budget for your fundraising program: Raising money is a product generating and performance enhancing business practice, which requires a budget for expenditures in its implementation. Set your organizations mind right, by building a budget that will be sufficient to generate the returns you have determined you can achieve.
  6. Establish and follow Performance Metrics: Tangible, measurable, meaningful metrics on your fundraising program, will provide feedback in the short term for iterating your fundraising plan. Iteration is an important part of your plan and should be built into your strategy. The term and technical process of iteration is stolen from the Tech world, but it is a wildly successful and highly focused tool for making significant and donor centric improvements to your fundraising plan over short term intervals. Responsiveness will increase your fundability. Over the long term, performance metrics will validate your efforts to your donors, your clients and your leadership and set a foundation for additional growth.
  7. Develop your case for support: Assess your organizations service programs, your fundraising goals, your measurements as above and your donor prospects. Tell your donors through the development of your Case Statement, specifically why funding you is an excellent investment, what programs will be supported, what outcomes will be achieved, how you will achieve them, by when and by whom.
  8. Get your papers in order: Review your By-Laws. Ensure your organization is set up to fundraise. Consult with your financial advisor and your attorney to validate your organizations filing status with the state or states you are fundraising in. Avoid costly legal and financial miss-steps before they occur.
  9. Organize your interactions: Invest in a Donor Relationship Management database early on, before you launch your new or newly expanded fundraising program. Building on your success and establishing a long term trusting relationship with your donors is the most significant strengthening exercise to your sustainability. This cannot be done without a tool to accurately and confidently track your relationships. Don’t skimp on this one. Luckily, there are many software programs that are no or low cost to qualified nonprofit organizations.

10. Assemble and engage your key stakeholders: Administrative leadership, board, employees- these are not only your first donor set, but your strongest and most important partners in your sustainable fundraising program. Empower them and make them apostles of the fundraising plan. With the first nine steps in place, their confidence will be raised and their enthusiasm to lead the effort will be the natural response.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Corporate Social Responsibility

In change management, Discussables, Research on April 25, 2011 at 2:31 pm

What is Corporate Social Responsibility?

And more importantly, why is it an important part of our conversation in discussing our relationship with corporate partners in philanthropy?

The reality is that Corporate Social Responsibility is an emerging field. It is a very broad and evolving area of development for corporations and not for profits alike, a new terrain for which maps are much needed, but often are imprecise.

It has a complexity that is only seen in the emergence of new ideas and systems , a nucleus of thoughts, practices and evidenced based studies that are lending to the defining structure that it is becoming, following along the lines of chaos theory.   To a corporation, Corporate Social Responsibility (CSR)  has a multitude of components, too many to review in this one small post.  Its concept and its practice is complex,  often disjointed and, currently, most often reactive.  Divergent views and information overload is nowhere more apparent than in the field of corporate social responsibility. Each company is different, each with its own challenges, corporate culture, unique set of stakeholders and management systems. Each with its own view and opinion and strategy.

But amid this swirling pool of CSR anti-matter, certain agreed upon norms and standards are being established. The World Business Council on Sustainable Development makes this statement on defining Corporate Social Responsibility:

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large

And this from an MBA textbook on defining corporate social responsibility:

Corporate Social Responsibility  is the decision-making and implementation process that guides all company activities in the protection and promotion of international human rights, labor and environmental standards and compliance with legal requirements within its operations and in its relations to the societies and communities where it operates. (Lehigh University, College of Business and Economics)

Two very nearly similar definitions. We are getting close to a commonality of expected beliefs and outcomes, among everyone involved in defining CSR.

Despite its complexity most corporations practicing a CSR culture, administer and measure their CSR programs along these three areas:

External Business Practices: How the corporation does business.  Who they compete with, who they partner with, their supply chain, their products, their distribution lines  and the impact their business has on society.

Internal Business Practices: Their corporate governance, their corporate policies, investments, ethical balance structure and the impact their business has on their employees

Impact Partnerships:  How they respond to societal issues that specifically impact their business practices, both internal and external and who they partner with in doing so.

Secondly, most corporations will agree that the measurement of these are based on three bottom lines:  Financial bottom line outcomes, Environmental bottom line outcomes and Social bottom line outcomes. This is called the triple bottom line.

Defining 3BL

For our role, as nonprofits seeking to shift our approach in securing corporate funding, it is essential to know and understand the core concept, terms and definitions on CSR as outlined here. Our ability to engage in an educated dialogue about our partners corporate social responsibility is critical to our successfully defining a partnership that meets both our and their needs.

CSR HISTORY

Let me take you through a quick history on corporate social responsibility. Some may think it’s a new idea, a fad or a recent breakthrough in thinking. But it goes as far back as the late 1800’s. Evidence of corporate socially responsible practices among industrialized corporations can be found in some of our most familiar company names. For instance, take the Sears Roebuck Company, a company that was near bankruptcy when Julius Rosenwald, joined the company in 1895.

During his tenure as vice president, treasurer and then president, Rosenwald grew the company from a failing $750,000 a year corporation to over $50 million.  As part of his growth plan, Rosenwald invested a lot of Sears’ money into society, specifically agriculture. Rosenwald understood that the growth of Sears Roebuck was wholey dependent on the growth and wellbeing of the company’s customer- the American Farmer and its field hands. And so he invested in his company by investing in his customer, through their societal, educational and family needs.

Why Rosenwald did this was not ‘termed’ corporate social responsibility until 1953 with the publication of  the book ‘Social Responsibility of Businessmen’ by economist and college president Howard R. Bowen.

But still the term languished, without much fanfare for about a decade, until the phrase was reinvigorated in the 60’s and 70’s around the time when big international companies faced anti-corporate sentiments because of environmental and human rights issues. In fact, companies faced large scale boycotts of their goods and services to force change among corporate practices affecting society and the environment.

Through the 80’s discussion of the concept of CSR grew. During that time, most socially responsible behavior was positioned as a philanthropic activity based on a company’s fixed budget that was allocated to support nonprofit organizations – mostly doing so to “look good”. These funds were sometimes allocated to many organizations  with the idea that to satisfy as many interest groups and to gain as much visibility as possible was a beneficial goal. The commitment was usually short term and restricted to making donations that were heavily influenced by the wishes of the senior management of the organization, and mostly to bring about a marketing position through brand awareness at nonprofit events.

Then in 1989, Ben and Jerry’s distributed the first ever Social Responsibility Annual Report. People took notice, because it authentically calculated Ben and Jerry’s  business practices and policies that lead to meaningful outcomes for society and the environment and to bottom line financial benefits to the company and the communities it supported.

Academic exploration, corporate research and charitable interest in CSR began to escalate at a rapid rate. In 1992 the Earth Summit in Rio was a key moment in the evolution of CSR. At this Summit, it was reported that “the level of corporate involvement in the summit was unprecedented, unlike anything ever seen before, with a coalition of 48 companies coming together to establish a new coalition, the Business Council for Sustainable Development (BCSD)”. This coalition placed the academic and financial exploration of  CSR culture on the map in a way now other group or company had been able to do before. The BCSD would later become the World Business Council on Sustainable Development (WBCSD) which continues to be an authority in CSR and have tremendous influence on the corporate social responsibility stage.

Since that time, corporate social responsibility as an essential and important business practice has moved from discussion in the cubicles of most corporations, to a presence in the board room and a position on the balance sheet of almost all company’s large and small.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers: NPO

In change management, Discussables, Research, strategic planning on April 13, 2011 at 8:07 pm

INFLUENCES ON THE NOT FOR PROFIT SECTOR

The recession was a wake up call.

Many nonprofits were left high and dry when their sole funding stream, gov’t line items, grants or contracts, began to disappear. Many scrambled to pressure the feds, others sought funding elsewhere. Some sadly closed up or, if they were lucky, merged with a similar organization.

Relying too heavily on one form of funding is a death knell. Diversifying funding is essential to nonprofit sustainability. In the recently released 2010 Nonprofit Fundraising study by the Foundation Center, organizations raising over $3MM annually did so because of their diversified funding streams. Over seven different funding vehicles were used by over 73% of those in the $3MM plus group. How many funding streams are you accessing right now? Corporate giving is an important part of those streams.

Another influence on nonprofits, peeking their interest and attention toward new corporate philanthropy, is the overwhelming BUZZ on corporate social responsibility, which has not been missed by these organizations. This is making them question their approach and strategy and reformulating to meet the new corporate perspectives. Additionally, many nonprofits are now finding themselves being denied funding from previous corporate partners, many of whom they relied on for significant help, because the companies in question are realigning their giving in a more unified and strategic fashion with their CSR model.

Finally,  bad information being disseminated and lack of research on corporate giving among the nonprofit sector has a negative influence on our thinking and planning.  Corporate giving is not about marketing.  Neither is it influenced by an ‘obligation’ the company feels to society.  And if we went off and approached our corporate partners with this in mind we would be dead in the water before we got to the closing statement.

It is an investment, not an obligation; a partnership, not a market approach. And it is directly tied to their business goals.

Up tomorrow: Defining Corporate Social Responsibility to understand process, policy and approach

SHIFT- Meeting Corporate Philanthropy Where It’s Headed- Influencers: CSR

In change management, Discussables, Research, strategic planning on April 11, 2011 at 6:01 pm

THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON CORPORATE GIVING

You’ve heard me use the term Corporate Social Responsibility (CSR).  It is the increase in the number of corporations attemping to define and implement their CSR that is also influencing corporate philanthropy.

Corporate Social Responsibility is not a new concept. It actually has been an ‘activity’ of corporations for over 100 years. We’ll explore its roots a little further into this series.

But it is the phenomenal growth of CSR over the last twenty years, both in number of companies embracing its tenets as well as companies creating a more deeply integrated CSR strategy in their business model, which has been a driving force in the way corporations are defining and implementing their philanthropic activities. Essentially, CSR is a strategic shift away from ‘giving to’ charities, toward  ‘investing in’ opportunities with charities, opportunities that align with their business goals.

What used to look like this: A corporation giving in a variety of ways to a variety of causes that were defined primarily by societal and community pressures…



Begins to look more like this: a turning inward to investigate the corporations basic social, brand and financial benefits and then identifying a unified cause that aligns and supports beneficial outcomes to those measures.

Does this mean there is less for us?

Absolutely not, the amount of corporate giving is increasing, its just the segments in which we will be viable partners are different.

Hear from Jerry Lee, co-founder of Newton Running, talk about his desire to express social responsibility through the vision and mission of his companys philanthropy.

Up tomorrow: Influences on Nonprofit Organizations in seeking more sustainable corporate funding.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers

In Discussables, Research, strategic planning on April 8, 2011 at 2:59 pm

THE INFLUENCE OF BUSINESS CRISIS ON CORPORATE GIVING

You may recall that BP nearly wiped out the Louisiana and Florida coasts last year following the Deepwater Horizon oil disaster. Over the course of weeks over 200 million gallons of oil spewed into the Gulf of Mexico. The disaster may have been one of the worse ecological assaults in history.



Ultimately, BP was assailed but not defeated by the oil spill. Their stocks plummeted, protests and boycotts ensued, heads of divisions lost their posts.  But BP weathered through, their stocks rebounded and their reputation is slowly and delicately on the mend.

In their favor was over 25 YEARS of brand management through Corporate Social Responsibility. At a Corporate Social Responsibility Conference at Boston College Center for Corporate Citizenship in the early 2000’s, BP was a highlighted  speaker and won awards for their ecological philanthropy programs. We might laugh now, but that investment saved them from collapse.

The need to build emotional trust, a bank account of goodwill with society, is an important strategy in corporate governance and a significant influencer on a corporations philanthropic efforts. This bank of trust will allow the company who has been the cause of, or has exacerbated, a crisis, to make withdrawals and weather it through.

Bad business will happen, and that knowledge drives corporate giving.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers

In change management, Discussables on April 6, 2011 at 10:56 am

THE INFLUENCE OF CORPORATE THOUGHT LEADERS ON CORPORATE GIVING

Corporate philanthropy has seen some radical shifts in the last twenty years. We may just now be drawing concern about what is happening, where it is headed and how do we stay engaged as these changes evolve?

To understand the shifts as they appear, we need to look at some key factors, one being influences on the corporate sector.

Let’s take a look at thought leaders in business and how their rockstar status and larger than life influences have impacted the patterns we are experiencing with corporations as they support causes and charitable efforts.

No conversation about corporate giving could be complete without a reflection on the impact of Milton Friedman.

Milton was a Nobel Prize winner in economics. He was a distinguished professor at the University of Chicago. He was the author of the classic best-seller Capitalism and Freedom and a long-time Newsweek columnist.

Milton Friedman was one of the greatest and most influential economists in the 20th century. This certainly qualifies him to be considered a business rockstar. He was also an unapologetic curmudgeon, an outspoken and controversial thought leader on all things business.

He was vehemently against corporate social responsibility as an obligation of business. He held that giving by a publicly held corporation in the name of “social responsibility” was a form of theft.

But Friedman was not against all corporate giving. Corporate philanthropy could be justified if it served a business objective—improving employee teamwork and motivation, strengthening the marketing of a company’s brand, enhancing financial outcomes. He also had a less emphatic position on giving by privately held companies. He thought that was a decision best based on the individual or family owning the company, as it was their money to give away.

Milton was a multi-dimensional man. Besides being a powerful voice in the business sector, he was also a great philanthropist and a tremendous advocate of philanthropy.  He was not alone

Alfred P. Sloane, another uber-chief of corporate discipline, he was born in New Haven Connecticut, educated at MIT and graduated from there in just three years, as the youngest member of his class. Alfred was a long time President and CEO of General Motors, resigning to remain as their board chair until the late 1950’s.  He steered the corporation through some tenuous and deadly years of bad business, Nazi allegations, and revenue slumps.

He was not as eloquent a man as Milton, but he too felt philanthropy had no business being tied to business. He simply stated “The business of business is business.” And like Milton he was a prolific philanthropist. Because of his personal generosity, his name today is on buildings and foundations across the nation, from Sloan Kettering in New York City to the Alfred P Sloan Foundation, whose assets currently reach about 1.8 billion dollars.

Why is it important to have knowledge of these two giants of industry? Why should we abandon our cynicism and try to comprehend their position on corporations and giving? Because every MBA student leading or preparing to lead companies today, have at their hearts, minds and training, the words, vision and example of Milton and Alfred. And it is with this training today, that they are approaching the development of corporate giving strategies.

The apparent disunion in the perspectives of these two gentlemen, when it came to business and philanthropy, is at first perhaps perplexing. But it is not unusual. Their beliefs still hold true today.  Whether you agree or disagree with their perspectives, these men continue to have tremendous influence on the culture of business through their legacy.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- An Introduction

In change management, consulting, executive coaching, Research, Retail ideas, strategic planning on April 6, 2011 at 10:11 am

This is the start of a four week series on corporate philanthropy, based on research, best practices and personal experience from the field. We’ll keep it entertaining and packed with good useful information that will help you develop your own Corporate Giving program. To follow along, bookmark and check back daily, or subscribe to the blog using the button at the bottom of this page (left side).  But don’t just follow along.  Ask questions, challenge observations, make recommendations, share your own experience, invite friends to participate.

Many of us have been in the philanthropy industry for years….maybe even decades…and we have much to lean on when we think about corporate giving. We know it is changing, it’s evident around us, and we know it has evolved over time, through some pretty hairy and weird years, to some truly meaningful examples. I’m going to ask us to set all of that aside for the next few weeks.

Let me start with a short, true, story to help us understand perspective and prepare our frame of mind. This story came to me from a friend.
“Years back a group of scientists in New Guinea visited a tribe who believed their world ended at the river. After several months, one of the scientists had to leave, which involved crossing the river. Safely across the river, he turned and waved at the tribesman he had left behind. They did not respond, because they said they did not see him. Their entrenched beliefs about their world had distorted their perception of reality.”

But changing  beliefs can be hard, right?

Let me give you an example.

Look at this door panel of squares. Now stare at the X in the center and think circles. What happens?

The circles that appeared when you thought ‘circles’, are an example of a shift in your perception of reality.
When you change the way you look at things, the things you look at change.

That’s why, in this series on corporate philanthropy, I’m asking you to abandon your old beliefs, your old perceptions about what you think you know about corporate giving, and become open to new understandings. In the words of our old friend Stephen Covey: Seek first to understand.

This month of posts on meeting corporate philanthropy where it’s headed, will help us to understand the influences on corporations as they strategize their giving efforts. We’ll identify influences on the sector. We’ll connect with company  goals and needs, and explore key behaviors in winning partnerships.  Not winning in the Charlie Sheen way, but in the way that provides outcomes and benefits for both the corporation AND the nonprofit partners.

A busy few weeks, but worth the investment if you want to create sustainable, efficient and effective corporate philanthropy revenue streams.

So join in, ask questions, engage, share, learn, enjoy.

Use these mid winter months to GROW, not slow, your organizations philanthropy

In Retail ideas, strategic planning on January 19, 2011 at 12:14 pm

Most nonprofits experience a significant lull in donations and donor activity in the months of January and February. The post year end doldrums.

Donors are slow to give, having distributed their 2010 charitable contributions during the ebullience of the holiday season.

Consumers are recovering from gift purchases.

The weather makes for hermits, with snow, ice and early nightfall urging more indoor, stay at home activities.

And snow birds have fled for warmer climates, leaving their local neighbors and friends to fend until spring.

This is the perfect time to grow your philanthropy program!

No other time in the calendar year do you have the potential to capture your audience’s undivided attention.

With all of the inactivity your donor and prospective donor is engaged in, you can offer a variety of options to help keep them entertained and informed, from the comfort of their warm living rooms.

  • Give them good reading for a cold winters night. January and February are the perfect time to send out newsy information on your group, your past success, your future plans.  Make sure your communication is meaty and news worthy, capturing the weather dulled eye of your constituency.
  • And to make sure those e-newsletters get to the right place, this is a perfect time to clean up your database.  With the reduced number of donations being processed and less visits to be made, your staff should spend time tidying up. Use an email verification software provider or staff can correspond and validate emails themselves. Capture address and phone while you are at it.
  • While you’re assessing, audit your grant programs, ensuring that you are on track with grantors expectations.  Send love notes to all your grantors, with New Year greetings and a true note of appreciation for what their funding has provided to your clients/mission.
  • Spruce up your website, e-newsletters and social marketing plans for the coming year.  Increase the frequency with which you are sending e-notices on your organizations marketing efforts, driving traffic to your newly spiffed up site.
  • Your staff has unique insight and talent, let others know! Identify media outlets and negotiate opportunities for your staff to contribute articles or podcasts on activities of interest, connected to your mission. A schools newsletter might appreciate a guest blogger or author writing about the importance of home support in education. A local grocer might find an article from an expert in the field of nutrition, valuable in their marketing to their customers.  Nows the time to get those pieces written and published. And don’t dismiss national journals. They need good writing too.
  • Lay the ground work for your spring appeal. Collectively send out notice to your annual donors, giving them insight and a sneak peak at your case for the spring and summer months.
  • Train your board. Your board meets regularly and has clearly defined agendas. Make the January or February agenda one that focuses on philanthropy.  A little bit of elbow grease and knowledge sharing by the board, will prepare them for an active and engaged year.
  • If you are planning a feasibility study, plan to launch it now. Most study participants can be reached by phone or online, so travel is less necessary.  Staff has more time to devote to feasibility study efforts. And the sobering months of January and February will flavor the feedback from your constituents, providing a more realistic and conservative view of your organizations ability to raise those funds through a campaign.