 How to Succeed In Business What Your Leaders Need to Know About Corporate Funding The musical, How to Succeed in Business Without Really Trying, traces the adventures of a window washer who climbs the corporate ladder in several days. Your nonprofit can succeed in obtaining business funding. However, it will take time and effort. This article provides a board primer to help you understand and earn this vital source of nonprofit income. 1. Why do corporations and businesses fund nonprofit organizations? - Business opportunities. Businesses seek to increase their customer base and goodwill among current customers. Nonprofits that reach their customers or potential customers provide an opportunity.
- Employee Support. By maintaining loyal employees, businesses reduce recruitment expenses and improve employee morale. Supporting nonprofits demonstrates that the company has a heart.
- Repayment. The funds represent a concrete expression of business' gratitude for the community support that made success possible.
- The Cause. A business leader has a passion for your mission. Business income provides him or her with a vehicle to act on their passion.
- Strategic. The business recognizes that working with a nonprofit is a chance to meet these or similar objectives with one check.
2. What are some examples of business support of nonprofits? - "In 2009, Cisco and the Cisco Foundation announced a three-year cash, product, and services grant of up to $4.5M to help City Year build a collaboration and communications platform . . ." (Cisco Website)
- The Verizon Foundation funded the Boys and Girls Clubs of Miami for $10,000 to support Project Learn. The project provides children with homework assistance and through educational games that sharpen their reading and math skills. (Verizon Foundation Website)
- An Easter Seals successfully sells gala tables for $2,500. The package includes a complimentary table for eight, website recognition, a half-page program advertisement, an event banner and four invitations to a VIP Reception.
3. What types of support do corporations and businesses offer? Four types are typical: a. Grants or gifts. These are competitive opportunities that reflect corporate responsibility and citizenship values. For the most part, corporate giving is like icing, a thin layer spread wide. b. Sponsorships. Cash or in-kind resources paid to a nonprofit. For the business, these represent marketing opportunities and are paid for from this budget rather than the philanthropic one. Sponsorships include many variations like event-naming rights and annual awards. c. Cause Marketing also relates to a firm's marketing. The term is used in several different ways. In some cases, it involves a donation with purchase. In others, cause marketing is about "the cause." A pet food company engages in cause marketing that supports proper pet nutrition with your group and other nonprofits that deal with animal welfare. Besides income, cause marketing helps nonprofits to reach sizable new audiences. Businesses benefit by increased sales. . . Read the rest of the article here... More Funding Resources Corporate and business support is only one of seven nonprofit income sources. This article on corporate funding is #4 in a series about each of the sources. For the earlier issues, see Added Value Newsletter Archive, For more on nonprofits and funding opportunities listen to our collection of audio downloads, especially Money-tastic #2: Non Profit Income Opportunities andMoney-tastic #3: Creative Revenue Streams for Your Non Profit.
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