"Coming together is a beginning. Keeping together is progress. Working together is success." — Henry Ford
Strategic partnership between the nonprofit and for-profit sector is necessary to overcome the many challenges our communities face.
Instead of securing business partners, nonprofits often receive "favors" in the form of "gifts" and "event sponsorship". Business executives do not see favors as valuable partners to invest in. When I left sales for nonprofit development it was surprising to discover the for-profit sector views nonprofits like kids raising money for a fieldtrip instead of a real business. Even more surprising was the realization that nonprofits project the same perception. This is the result of two assumptions undermining the relationship between them for decades. First, that nonprofits are only objects of charity with no economic value. Second, giving to them comes at the expense of business profits. Yet there is ample evidence proving neither can reach their ultimate potential without partnering. Plus, when philanthropy is aligned with a company's strategic long-term goals it results in a greater impact on social good. This motivated me to focus my career and business, The Wright Motivation, on bridging partnerships between the nonprofit and for-profit sectors that lead to transformational change. Today, I will summarize the five reasons business executives see nonprofits as favors instead of viable partners to reveal that a change in perspective can inspire rapid growth and impact. The five reasons are:
Mirror, Mirror What do you See
Begging Instead of Engaging
The Silo's Tourniquet
Have you Heard the Strategic Planning Joke?
"This is how we've always done it..."
Mirror, Mirror What do you See
If you don't see yourself as a "real business" who brings value to partnerships, then why would anyone else? This is the first and most important reason business executives won't see nonprofits as viable partners. After decades of being treated like kid lemonade stands, nonprofits have accepted and adapted to the role. They've become the "professional askers" of the business world. Passive recipients, always looking for "generosity", "help", "support" and "gifts" as if they have nothing of real value to give in return. Yet, the truth is, nonprofits tend to the soil that businesses grow in. Each nonprofit contributes to different aspects of building a thriving community. When a community thrives, so do the businesses within it. Instead of pulling on business executives heart strings for "help", nonprofits need to recognize they bring value that contributes to the overall success & profitability of long-term business goals. Achieving this will allow nonprofits to grow their business partnership programs exponentially.
Begging Instead of Engaging
Once nonprofits can see themselves as a viable business partner, the next step is communicating like one. The second reason nonprofits are seen as favors is because they are ignoring the big purple elephant in the middle of the room, accepting they are in sales. Yes, I said it, nonprofit development is sales too. Rejecting this prevents business executives from seeing nonprofits as partners because they are communicating in different languages. For-profit business developers do not capture new business by asking their prospects for help. There is nothing wrong with nonprofits selling the economic value of social good or businesses increasing success through philanthropy. In fact, when the corporate world aligns their social responsibility programs with their long-term strategy it actually has an overall greater impact on social good. Nonprofit development professionals can toss the tin cups and start engaging partners in the same way business development approaches it, by selling the benefits of what they offer.
The Silos Tourniquet
Silos greatly limit a nonprofits ability to attract and retain business partners because they prevent internal communication and collaboration. This promotes a divided culture reflected in every aspect of the organization including the business partnership program. Business partners have more than money to offer. They can also provide professional expertise and infrastructure that could fill gaps within the organization. Plus, something your organization is doing could fill a gap within a business. In a siloed organizational culture these types of partnership opportunities will be missed because collaboration and transparency are necessary to capture their interest. When you prevent the flow of communication and interaction in an organization, it’s like stopping the flow of blood to a limb, it's guaranteed to expire. Actively managing silos and promoting collaboration between all channels in the organization will lead to growth in a nonprofits business partnership program.
Have you Heard the Strategic Planning Joke?
When strategic planning is mentioned in the nonprofit world there's an immediate chorus of sighs and eyes rolling to the sky. This has become a grueling process for boards and leadership; all to create a 3-to-5-year plan that is kept in a drawer to collect dust for the next 7 to 10 years. Unless a copy is needed for a grant application, of course. All efforts result in a useless plan due to the lack of involvement from front line employees responsible for executing the plan and the community needed for funding it. To get business executives attention it is necessary for nonprofits to change their strategic planning approach. Goals are usually obvious, but the actions it takes to achieve those goals should be determined by the front-line employees and community. Leadership would only facilitate the process. Unlike promises of causing "hope" and "happiness", a realistic and well-structured strategic document provides something tangible to invest in. It's like a business plan or proposal, which speaks the same language as business executives. To capture valuable partnerships, strategic plans need to be current, applicable, and reviewed monthly at the very least. This will prove to business executives that the organization is a viable partner with clear direction and value to offer.
"This is how we've always done it…"
The last reason is a sensitive subject, but it's the herd of elephants in the middle of the room that can’t be avoided. Yes, elephants again. Regardless of which side of the fence you stand on when it comes to the length of board and leadership terms in an organization, how it is managed determines the success or failure of nonprofit business partnership programs. Resistance to change is often the result of unlimited terms. This is detrimental to an organizations ability to grow in all areas, including the business partner program. Taking preventative measures will make all the difference. Creating a plan for managing change that ensures board and leadership consistently stay engaged is key to success. When organizational decisions are made based on how to least upset someone or because "we've always done it this way" instead of key performance indicators, it is time to create a plan for change. An engaged board and leadership team who are transparent, open to new ideas and comfortable with change will consistently generate solid business partner leads.
Nowhere in the United States can someone working full-time on minimum wage afford adequate shelter let alone food and warmth. Crime and violence consistently increase. Overall mental and physical health is declining because vital resources like food, education and healthcare become less and less accessible for the majority. Strategic partnership between the nonprofit and for-profit sector is not only necessary for either to reach their full potential, but also the only way to overcome these challenges. When the two align their long-term goals, it results in a powerful force capable of an explosive impact. To catch my next five articles that will go into depth on each of the obstacles discussed and for information on how to capture valuable business partners check out The Wright Motivation.
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