How to build strategic corporate relationships
Howard Lake | 7 October 2016 | Blogs
Pauline Broomhead, CEO at The Foundation for Social Improvement (FSI), discusses building relationships with corporates and the opportunities and challenges facing small charities.
More, now than ever before, both corporates and charities are learning to play to their strengths and both charities and corporates have a new opportunity to work together to solve problems.
In recent research released in US publication The Future of Philanthropy, it was clear that the general public felt that not-for- profits and public-private partnerships would develop solutions and create that change necessary to solve problems in the future.
Confident in your value
First of all charities need to be confident in their value: we are the most efficient sector at spotting unmet economic, social and environmental needs in society. Whilst, on the other hand, corporates have the ability to scale things up. These two strengths should mean that a relationship between a corporate and a charity is a perfect marriage.
We therefore predict that the future will be one in which corporates and charities combine their knowledge and scale to share risks and develop solutions and solve social problems that need fixing.
At our recent Fundraising Conference Graham Precey, Head of Corporate Responsibility & Ethics at Legal & General, presented a thought-provoking session asking delegates to think about what charities have that corporates need and what social problems we are fixing that a corporate would benefit from supporting. Graham challenged us to know what we are good at, to ‘put it out there’ and to be opinionated so that corporates can find us and work with us.
Masterclass in Developing Strategic Corporate Relationships
With this future in mind the FSI developed, early in 2016, a Masterclass in Developing Strategic Corporate Relationships.
In this new paradigm we, as charities, need to be alert and proactively search out corporates who share our vision, have customers who may be our beneficiaries or have information and research needs that we are able to meet. Being ready is all about being able to tell your story in a structured way that achieves your goal, giving the corporate something to remember by clearly articulating the problem you are trying to solve and the solution you will deliver. You have to ask open ended questions and ensure you use the right language, come across naturally and be able to read their body language.
Once engagement is underway take some time to do your due diligence. What do you need to find out about them, who cares in your organisation about who you partner? Try walking in the shoes of your stakeholders by being clear that they would approve of the relationship you are building.
When we start to build long term relationships we need to make sure we are getting off on the right footing.
Make sure there is a good strategic fit and identify where your mission overlaps with theirs. Who are your common group and are your values compatible? The closer the fit the stronger the alliance.
Be clear about what is expected of you and don’t be afraid to articulate and put into writing what reciprocal activity will be delivered by the corporate. Don’t neglect managing the relationship, building trust is an essential, intangible asset of effective partnerships. We build trust through regular contact, listening carefully to what is being said, meeting deadlines, being honest and transparent and engaging jointly to solve problems.
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Communication to handle difficulties
Communication in any relationship is vital at all times but will become critical when difficulties arise.
Keep communicating among all stakeholders, communicate results, successes and don’t forget to keep communicating your shared mission.
Final thoughts:
- Find out about what the business cares about, don’t try to ‘sell’ the charity, try to solve a problem the business is trying to solve.
- Avoid potential pitfalls, your organisation must ensure that written agreements safeguard both sides. Even though both sides want the best for each other, you just never know what’s going to happen in a business so therefore,
- Be clear about what is expected by the company before you enter into an agreement/partnership.
- Before getting into the details of an agreement or contract, it’s important to know what the business is looking to get out of a partnership. It could be many things, such as exposure to a new market or knowledge or insight into a particular subject. Start by asking the question “What would a successful relationship look like for you?” You have to understand how the business will see a return on its investment
- Get final sign-off from leadership
You can find out more more information about the free training from the FSI.
Pauline Broomhead is CEO at The Foundation for Social Improvement (FSI).
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.