Every day, there are more and more people and causes in need of assistance. People want to be able to help one another, and many opt for the more hands-off approach of donating to a cause or organization. Others opt to get involved themselves and provide their time and service. However, helping out shouldn’t just be an individual agenda; businesses can also use their resources to partnering with a charity.
A business’s chief concern shouldn’t just be lining its shareholders’ pockets, especially given societal expectations. For both customers and employees, it is vital to see a company that they are a part of contributing positively to its community. By extension, this makes customers and employees feel they are making a difference in the world around them.
Partnering with a charity is a meaningful way for a company to connect with those outside its day-to-day operations, expanding its reach without necessarily having its self-interests at the forefront. Instead, the charity’s needs would be prioritized, with the business seen as more of a backing force behind a good cause.
The common misconception with charitable endeavors is that only those with the most means can and should contribute, but that’s not true. A small local business partnering with a charity has the opportunity to make an impact, even if it might not be as impactful as what a larger company can do.
Beyond actively furthering community changes, partnering with a charity also increases the likelihood that a business’s name will receive positive word-of-mouth. A good reputation is a crucial component of building brand awareness, and what better way is there to gain a positive reputation than by truly participating in positive causes?
In addition to brand reputation and having a positive impact, partnering with a charity has many benefits for a company, such as increasing staff morale, networking opportunities, and media exposure. The marketplace is more competitive than ever, and a charity partnership allows a business to stand out in more ways than one.
Building Brand Loyalty Through Purpose: The Power of Corporate Charity Partnerships
The current market is crowded with businesses that often lack clear differentiation. As a business owner, finding ways to make your brand stand out beyond the products and services it offers is essential. After all, there’s likely another business providing something similar. Corporate charity partnerships offer companies a valuable opportunity to positively impact and enhance their reputation in the community.
This is also an effective way to earn goodwill from potential customers. Social responsibility is very important to consumers in the current market, and any company seen as a contributor is likely to keep customers investing in their brand since they feel their money is being used well.
Conscious consumerism is growing in popularity, and it’s all about buyers putting more thought into their purchasing habits, from ensuring products are sustainable to looking into the habits of the companies who produce these products. Corporate charity partnerships allow businesses to take advantage of this in the current market, adding value to their community and customers.
But even without consideration of the current market, there are still undeniable benefits with corporate charity partnerships, as previously mentioned.
We explore these benefits in detail below and offer insight for businesses looking to make strategic moves with a nonprofit.
1. Building Brand Identity:
As previously stated, partnering with a charity is an excellent way for a business to build its brand through word-of-mouth. By working with a charity organization and getting directly involved with the community, the business also familiarizes community members with its name and builds up a good reputation.
However, brand identity and corporate charity partnerships should be cohesive from the start. This means a business should put real thought into what charity they choose to partner with rather than picking one at random or based on popularity. The most mutually beneficial partnership would be one where the business’s function naturally relates to what the charity is involved in.
For example, a grocery store might partner with a food bank to provide them with extra goods. Not only does this make the relationship between the company and the charity function more smoothly and naturally, but it also gives the business’s charitable work a sense of authenticity because it clearly aligns with its own brand.
The right charity partnership should set a business apart from competitors who might not be involved in any socially responsible work, thus adding a sense of ethics to brand identity.
2. Strengthening Customer Loyalty:
For customers, the idea of an ethical corporation is an important buying consideration in the current market. Not only do people want to be involved in charitable social work themselves, but they also want to feel as though the companies they invest in support good causes, too.
Consumers want to be more responsible with their money, which means they want to make sure that their purchases can also contribute to building a better world around them. If a business is linked to causes that a customer deems to be important or worthy—a cause that aligns with their values—that customer is more likely to remain loyal to that business.
Corporate charity partnerships let companies build on this connection. Additionally, loyal customers who have truly invested in a brand are more likely to talk about said brand and recommend it to others, becoming free advertisers that benefit the business. Conversely, customers might also stop patronizing a business that they perceive as being in conflict with their values, which makes picking the right charity to be in partnership with even more crucial.
3. Increasing Employee Pride and Engagement:
Similarly to how customers feel as though they’re contributing to something good when they purchase from a business involved with a nonprofit, employees also get an increased sense of moral pride from working for such a company.
If the company is giving back to the community, the employees inevitably are, too. Some might even become directly involved with corporate charity partnerships by volunteering with the organization or working on company events that relate to the charity.
Employees who feel a stronger sense of pride in their company’s operations are also more likely to be hard-working and loyal. Overall, corporate charity partnerships foster a sense of pride in one’s place of employment, which can then lead to increased productivity, workplace camaraderie, and higher job satisfaction.
4. Generating Media Exposure:
This benefit of corporate charity partnerships sort of goes hand-in-hand with brand reputation. Working with a charitable organization can, of course, build a good reputation for a business, especially if the business is involved in organizing specific events and campaigns.
Media attention from these charity events can impact how the community sees a business and what the brand is associated with. And while this can be great for gaining customers, media exposure can do more than just add to potential sales.
It can also gain the company influence over potential employees and other businesses for potential partnerships. Positive publicity gives a company a sense of credibility and trustworthiness that can only help the brand grow, especially if used to build further connections.
Audiences outside of the business’s target market might be exposed to it through media visibility from corporate charity partnerships, leading to connections that would not have been otherwise possible.
5. Networking Possibilities:
Corporate charity partnerships also provide businesses with the unique opportunity to broadcast their values and really be transparent about the causes that are close to them. This transparency leads to increased chances of strategically connecting with other businesses and professional organizations who share those same values and would potentially like to contribute to the charity as well.
Unlike with other emptier or profit-based methods of company networking, a relationship formed through shared values is much more likely to be substantial and long-lasting. Two businesses going into collaboration sharing core values means that they align where it truly matters and have a higher likelihood of a successful partnership.
The most important thing to remember is that supporting a charity shouldn’t only be about a business looking to benefit itself; it should be about doing good, plain and simple. Corporate charity partnerships impact communities for the better with lasting changes. Getting involved as a business means a brand is a part of something that has an effect on the future.
Join us in shaping a better tomorrow for Miami County. Your support is more than just a donation. It’s an investment in our community.
How to Partner with a Nonprofit the Right Way
An effective partnership can only come about when a business strategically chooses the right charity to get involved with. A common cause and/or shared values are the most important considerations to keep in mind when going into the process. Knowing how to partner with a nonprofit before making any final decisions ensures that a company will have successful results that benefit itself and the nonprofit organization (NPO).
However, there are other qualities that lead to the most impactful charity relationships. Partnering with a charity means taking all of these into account, especially if the desire to do community service is genuine on the part of the business (as it should be). The key qualities to look for in corporate charity partnerships are as follows:
A. Clear Mission
It’s already been established that shared values are key when figuring out how to partner with a nonprofit. So, how does one go about discovering a nonprofit’s values to begin with? The answer would very obviously be through appropriate research, and if the charity is truly reputable, its mission statement and core values should not be too difficult to find.
Most NPOs dedicate a section of their website to explaining their purpose and commitment to a specific community cause. Their mission statement should clearly articulate their goals, which businesses can pay close attention to in order to visualize how they might contribute to achieving these objectives.
A nonprofit having a clear mission is the easiest way for a company to learn whether its values align with the organization’s for a strong partnership.
B. Transparency
Building a partnership with a new organization is all about having trust and loyalty. Distrust can only yield instability when partnering with a charity, so businesses should ensure that they pick an organization that clearly has nothing to hide. After all, shady dealings by a charity would have a negative impact on the business’s reputation.
For a nonprofit, the biggest area to check for transparency would be in the allocation of its resources. Of course, one would want to be extra sure that the community work they contribute to is actually reaching the community members and not being hoarded by a selfish organization.
A trustworthy NPO will be open about where their resources go specifically and provide insight into how they lay out their budget and what the results of all their charitable efforts are, such as sharing on their website or in a newsletter how much was raised in a walk-a-thon and what the fund went towards.
If a charitable organization makes it hard to find any publications on their community efforts, it might be a sign that they’re not a trustworthy choice for a corporate charity partnership. Resources like Charity Navigator and its rankings can be a huge help when learning how to partner with a nonprofit.
C. Credibility
This quality often comes with transparency, but it is worth considering on its own, too. While transparency is all about how the charity presents itself in an open manner, credibility is about the effectiveness of its operations and how they are perceived by the public.
Investing in a charity means trusting it with one’s hard-earned money, and for businesses, this can extend to the money of their loyal customers, who take the brand’s partnership with the charity as an endorsement of their impact and trustworthiness. Before partnering with a charity, a company should do some background research to learn what others are saying about the organization. Does it have a reputation for good work and truly aiding the community? Or do community members claim that it is dishonest in its practices and doesn’t actually contribute anything?
The simplest way to look into an NPO’s credibility is to check social media and perhaps even online publications and press coverage; really, any online platform where people are able to speak their opinions will be suitable. What people say about a charity is very important to ensure that it is worth investing in and working with. No business wants to lose the trust of its clients through partnering with a charity that is anything but charitable.
D. Local Community Engagement
Another great use for social media is that it allows businesses to really see how a charity for a potential partnership engages with its community. Figuring out how to partner with a nonprofit should include seeing exactly how the organization functions within its community, especially in terms of having a strong impact.
It’s important to ensure that the NPO isn’t all talk and that they actually put their resources into action. One could approach this part of the research process similarly to how one would look into a business rather than a nonprofit for collaboration.
Use social media to gauge how the nonprofit is building its brand and connecting with its ‘customers’ (the community). How does it use its platform? To educate and inform? To fundraise? Raise awareness? Share events? Is the nonprofit involved with any other brand partnerships?
Looking into all of these will paint a clear picture of how the charity operates in terms of community engagement and if they have any direct impact. That way, once a business begins partnering with a charity, it can rest assured that its efforts and investment will not be in vain.
Legal and Financial Considerations For Corporate Charity Partnerships
As with all partnerships in business, one should also understand the legal and financial considerations involved in partnering with a charity. Given that nonprofits get their funding from outside sources, there are unique things to think about before entering into an agreement with one. Both the business and the charity should understand these legal and financial issues before moving forward with one another.
- Contractual Protections: This seems obvious, but it’s the first step that should happen before all the other considerations. A written agreement protects both parties, the business, and the charity. The document should very clearly articulate the purpose of the partnership, particularly what roles the company and the charity will be playing and how they will each contribute to mutual goals.
- The contract should also include how long the partnership will last and what the specific responsibilities are of each party, whether it be funding efforts and volunteers on the part of the business and event organization on the part of the charity.
- Financial considerations like how funds will be raised and managed should also be outlined. All details of the arrangement need to be plainly laid out so that everyone knows exactly what they’re getting into.
- Tax Implications: A nonprofit is created for tax-exempt purposes, which can be seen as being in conflict with a corporate partnership. Additionally, businesses in a corporate charity partnership might face new tax considerations once the relationship begins, such as being eligible for certain tax deductions.
- There are many different specific circumstances that can have specific tax implications for both parties, so it would be wise to seek professional guidance when learning how to partner with a nonprofit. A tax professional will ensure that everything is handled appropriately to avoid legal and financial ramifications.
- Copyright and Intellectual Property (IP): When partnering with a charity, a business should also consider how its brand and its associated imagery might be linked to that of the charity. This might include logos, slogans, or other marketing materials. A clear agreement on IP, whether included in the overall contract or in a separate one of its own, should clarify how each party can make use of the other’s branding.
- For example, the company may be able to display the charity’s logo on its website for a year after the partnership has ended, so long as that is what was agreed upon. The contract should include usage rights, duration, and conditions of termination. Additionally, if there is any third-party IP involved, both parties should ensure that they have permission to use it for a specific timeframe.
Researching the financial and legal considerations of a corporate charity partnership is just as important as researching the charity itself. Throughout this part of the process, clarity and transparency are key when it comes to communication between the business and the charity. Both parties should be fully aware of what their partnership will entail in all regards to make the collaboration as smooth and successful as possible.
Inspiring Stories of Businesses Partnering with a Charity
Learning by example is often the most effective approach, especially for a complex process like partnering with a charity. For those unsure about what corporate charity partnerships could look like for their own business, it’s helpful to find inspiration in similar companies and their successful charity partnerships. Here are a few examples:
- Disney and Together for Short Lives: The Walt Disney Company UK and Ireland have used a key aspect of the brand’s identity (inspiring children with its memorable stories and characters) to partner with Together for Short Lives, a charity that supports sick children and their families. They help to support hospital care for these children and provide them with the magical memories that Disney has become synonymous with over the decades.
- Gillette and Movember: Gillette is best known for its men’s care appliances, especially its razors, so it is no surprise that, when partnering with a charity, Gillette would team up with a men’s health awareness organization. Movember’s mission is to raise money every November by sponsoring men to grow their facial hair for the entire month. This pairs well with Gillette’s products as a business since all those men are going to want a good shave once the month is up.
- M&S and Breast Cancer Now: The clothing brand has been in partnership with the breast cancer charity for many years now. They help to raise money through the sale of post-mastectomy bras, swimwear, and lingerie, which target women who have gone through the surgery to help them retain their confidence in their bodies. They even share images of post-surgery women on their website to raise awareness.
- Starbucks and Mermaids: This collaboration is founded on more than just the coffee brand’s iconic mermaid logo. Starbucks launched a campaign in partnership with Mermaids, a nonprofit for gender-diverse children when they discovered that transgender people were testing out their chosen names when placing orders at stores. Partnering with a charity in this manner has allowed Mermaids to grow their helpline through Starbuck’s contributions.
These are all great examples of how intentional collaboration between a business and a charity can be mutually beneficial. It is clear to see how each business chose to partner with a nonprofit that spoke towards their brand values in order to yield real results and foster goodwill among the communities that benefit from these partnerships.
Partnering with a charity presents the perfect opportunity for a brand to grow in an unexpected way, prioritizing community impact and connections over business networking and sales. While it is ultimately about doing good and giving back, the motivations for corporate charity partnerships do not have to be entirely unselfish for the business.
There are numerous benefits to partnering with a charity when done correctly, including increased brand awareness, employee satisfaction, and media exposure. When entering into a partnership, a business should be excited about these opportunities while remembering that there are legal and financial circumstances to consider. But all in all, choosing a nonprofit to work with is a smart way to boost a business and get involved.
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