Day: January 20, 2017

2017 Trends That Could Influence Your Philanthropy (Part 3)

So far in our series we’ve looked at 4 trends that could influence your philanthropy in the course of this year. We have reviewed:

Political differences becoming more polarizing
Technology being used more effectively
Unemployment and under-employment greatly influencing philanthropy, but promising to improve, and
Less institutional trust, increased millennial involvement and more demand for projects demonstrating tangible results

Today, I’ll discuss at least two more trends:

Corporations give more where their people are involved.

According to a 2013 study, 82% of US consumers consider social responsibility in deciding what products to buy. When it influences the bottom line, corporations tend to pay attention. Not that they lack altruistic tendencies, but if corporate involvement influences sales it’s one more reason to take responsibility seriously.

While corporate giving accounts for only 5% of total philanthropy, it provides a real boost for nonprofit fundraising. So how can you get corporate employees more involved in the life of your organization? There are several ways!

Co-brand events – Each year one nonprofit organizes a fun run sponsored by a local corporation. Another one engaged a large corporation to underwrite their annual festival of new plays. Then there are sponsored events like the Nutcracker, sports tournaments, recognition ceremonies, arts festivals and much more. In fact, we’re finding that corporations are even more generous through co-branding because the money typically comes from marketing budgets.

Provide opportunities for involvement – There are lots of ways to involve others, but the responsibility for doing so lies with the nonprofit to communicate its needs and it’s not just about money needs. For example, for upcoming events call volunteers and let them know you need their support. Also, rather than put heavy workloads on staff, think of creative ways you can utilize volunteers. For example, the United Way uses corporate loaned executives as additional staff each year.

Invite corporate employees to join your board – When volunteers demonstrate strong interest or passion for your cause, consider them for board membership. Also, when you already have a good number of corporate employees involved, gather data on the hours they contribute, what that equates to monetarily and what they’ve helped you achieve. Send thank you notes to the corporation’s upper management and include this information. It enhances your relationship and helps build your case if and when you make a monetary request for support.

Identify the value proposition – What’s in it for the corporation? When you solicit corporate gifts in any form you must be prepared to answer this question. For example, you may show them how your mission parallels theirs. Discuss ways you can help them reach their target audience through social media and other forms of communication. Corporate challenge grants are even more attractive, since you will communicate their challenge to your entire donor base. Essentially, you want to identify the “quid-pro-quo” prior to your visit and make that part of your discussion.

Ways to involve corporate employees are endless, but organizations that do plan and invite people to help are also ones who will secure more of their support.

Community problem solving will increasingly motivate giving.

Increasingly major donors seek to make a tangible difference. It’s not good enough just to give to annual funds or capital campaigns. Essentially, they want their gifts to be transformational, and they want to see results that clearly demonstrate those transformations.

Facilitating that requires nonprofits to have appropriate foreknowledge about donors and their interests. As fundraising consultants, we recommend a thoughtful process of donor research followed by careful planning around areas of donor interest. Of course, that planning is geared towards solving one or more problems that are in line with your mission. That way you will be able to engage donors strategically in supporting your priorities.

However, the challenge will always be to find ways to accommodate donor interests without changing your mission or key programs simply to chase dollars.

by Len Moisan

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