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

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

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.

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

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

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

THE INFLUENCE OF GOVERNANCE ON CORPORATE GIVING

In addition to the shifts and perspectives being discussed and implemented in the business academic world, we see advancement in environment surrounding business governance as well.

ISO 26000 was implemented September 14 2010. For those not familiar, The ISO –a network of the national standards institutes of some 160 countries that develops and coordinates standards of operations for business lines. The standards govern management of Quality, Risk Environmental and now Social Responsibility. Simply put, these standards are applied to a company’s business practices, who actively engage in pursuing compliance. When they do so, they are awarded an ISO brand of approval for achieving and maintaining these standards. These are highly coveted and companies who achieve them make them visible.

In the words of the ISO itself “The world demands social responsibility. ISO 26000, the first internationally approved standard to provide guidance on social responsibility, is a global response to this global challenge.”

The ISO 26000 is intended to outline for companies:

  • concepts, terms and definitions related to social responsibility;
  • the background, trends and characteristics of social responsibility;
  • principles and practices relating to social responsibility;
  • the core subjects and issues of social responsibility;
  • integrating, implementing and promoting socially responsible behavior throughout the organization and, through its policies and practices, within its sphere of influence;
  • identifying and engaging with stakeholders; and
  • communicating commitments, performance and other information related to social responsibility.

This is the first time an organized set of standards has been produced and disseminated for companies to follow. Thought leaders believe this will be game changing for companies in strategizing and developing their social responsibility.

ISO 26000 is a response and a governance influence on corporations. IN part it may stem from the multitude of influencer’s outside the corporate circle. When JP Morgan Chase investors assemble to vote on a “Genocide Free” investing policy for the company, the pressure to conform and perform to standards is undeniable.  Loss of trust by the consumer, civil society activism and Institutional investor pressures, all bear significant influence on corporations today.

VIDEO: Highlights on ISO 26000 from inside sources            [wpvideo EWHGPEVM]

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

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

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.

Kill me with just one click….

“Hi, thanks for following. Please support us”, read the direct message recently from a new twitter friend.
I dutifully clicked on the link, which transported me to the online fundraising portal Justgive, where I was presented with a picture of a sick infant, a hoped for amount to be raised ($500,000) and a donate button. Nothing more. No mission statement, vision statement, no list of projects. No paragraph on what the org does, where they reside, where they operate. Nothing to stimulate my interest or inspire my passion. Nothing but a Just Drop Your Money In The Box On The Sidewalk appeal.
What have charities been driven to? Who told them this type of Fundraising was a good idea?? Someone needs to be held responsible for the demise of the charitable solicitation.

We hear much about the indecency and greed of the American corporation. It is characterized as a company’s lack of soul, its depersonalization of its customer, its demoralized expectations of its sales staff in pushing its products on the consumer. The evil empire of corporate greed, where money is more important than the moral fiber of its relationship with its market.
I think our nonprofit industry needs to check itself here.

When asking for my money is the first thing an organization does when meeting me, we’ve lost our center. And that organization has lost its ONLY chance to win me as a supporter. I’ll never look at them again as more than a beggar on the street. Their programs, should I ever learn what they are, will be tainted with the belief that, “hey they just want my money anyway.” I’ll never pass their work on, ask a friend to help or volunteer to advance their mission. Because as far as I am concerned their mission is to get my money.

Please, stop the madness. The internet is an amazing and fantastic tool. When used as an extension of the cultivation and solicitation and stewardship we practice everyday, the relationship building that is essential to our sustainability, it can be incredible. However, as with all powerful tools when used incorrectly or recklessly, when wielded with disregard for others, when seen as nothing more than a means to an end, it can kill our efforts with just one click.