Non-profit organizations (NPOs) constantly face funding challenges. Fortunately, the philanthropic landscape is evolving, and businesses are becoming increasingly engaged in supporting social, environmental, and humanitarian causes. This trend is gaining traction in Europe, particularly in Switzerland and France. Let’s explore the various forms these partnerships can take and how to implement them successfully.
1- The Growing Engagement of Businesses in Philanthropy
According to a study by the Corporate Philanthropy Barometer in Switzerland, nearly 60% of companies have increased their philanthropic budgets in the past 5 years (Source: Baromètre du mécénat d’entreprise en Suisse 2022, Philanthropie.ch). In France, this figure reaches 65%, according to a recent survey by the Observatoire de la Philanthropie (Source: Enquête sur le mécénat d’entreprise en France 2021, Observatoire de la philanthropie).
The motivations of businesses are manifold: strengthening their brand image, engaging their employees, responding to societal demands, or obtaining tax benefits. In Switzerland, the most involved sectors are IT, finance, and the pharmaceutical industry. In France, luxury, agri-food, and telecommunications companies are strongly engaged. Beyond monetary donations, businesses are investing more strategically, making their expertise, logistics, and networks available.
2- The Different Types of Partnerships
There are numerous forms of partnerships between businesses and NPOs, each with its own advantages and disadvantages:
- Rounding up salaries
In this type of partnership, the company proposes to its employees to round up their salaries, with the difference being donated to one or more NPOs. It is a simple and sustainable way to generate funds for the organization. It also allows employees to be involved in a solidarity initiative.
Advantages:
- Ease of implementation for the company and the NPO
- Regular and lasting commitment from employees
- Recurring collected amounts
Disadvantages:
- The total amount collected may be limited as it depends on the number of participating employees and the average level of donations
- Requires an attractive communication campaign to mobilize as many employees as possible
Recommendations:
- Regularly monitor the results and adjust if necessary
- Implement incentives or events to encourage participation
- Cause-related marketing
In this type of partnership, a portion of the profits generated from the sale of a product or service is donated to an NPO. It is a “win-win” operation that can boost sales while supporting a cause. It also allows raising awareness among customers about the supported cause.
Advantages:
- Generates additional funds for the NPO
- Can stimulate product or service sales
- Raises awareness among customers about the supported cause
Disadvantages:
- Care must be taken with the communication around this partnership to avoid being perceived as opportunistic
- The share of profits donated must be clearly identified
Recommendations:
- Choose a product or service that is in line with the image and values of the NPO
- Clearly identify the share of profits donated and communicate it clearly
- Ensure transparency on the use of the collected funds
- Brand association
In this type of partnership, the company and the NPO collaborate on a joint communication campaign or event. This allows them to benefit from each other’s image and network, creating a positive dynamic around a cause.
Advantages:
- Pooling of networks and communication resources
- Positive synergy between two brand images
- Concrete engagement around a cause
Disadvantages:
- Care must be taken to ensure consistency between the two entities to avoid any risk of discrepancy
- Requires close coordination between the company and the NPO
Recommendations:
- Precisely define the roles and commitments of each party
- Ensure alignment of values and complementarity of activities
- Involve teams on both sides for a smooth collaboration
- Skills-based volunteering
In this type of partnership, the company makes volunteers available to the NPO to carry out specific missions. It is a way to support the NPO while developing the skills of its employees. It also creates a strong link between the company and the association.
Advantages:
- Provides concrete and customized support to the NPO’s needs
- Develops the skills and engagement of employee volunteers
- Strengthens the ties between the company and the NPO
Disadvantages:
- Requires good coordination and a significant time investment from both parties
- Requires clearly identifying the NPO’s needs and the company’s available skills
Recommendations:
- Clearly identify the NPO’s needs and the available skills within the company
- Implement a monitoring and feedback system for volunteers
- Recognize the commitment of employees within the company
- Sponsorship
In this type of partnership, the company fully or partially finances an activity, event, or publication of the NPO in exchange for visibility. It is an interesting financial contribution for the NPO, while also allowing the company to have a certain visibility.
Advantages:
- Provides significant financial support to the NPO
- Offers visibility for the company to the NPO’s target audience
Disadvantages:
- A balance must be found between the interests of each party to ensure the partnership remains equitable
- Clearly defining the benefits offered to the company is necessary
Recommendations:
- Clearly define the benefits offered to the company (visibility, access, etc.)
- Ensure consistency between the company’s image and the supported cause
- Ensure that the sponsorship does not influence the NPO’s independence
3- Advice for Successfully Implementing Partnerships
Regardless of the chosen format, a few best practices can optimize the chances of success:
- Identify the companies most likely to be interested based on their sector of activity, values, and brand image
- Prepare a clear and convincing presentation file highlighting the mutual benefits
- Involve internal teams (HR, marketing, communication) to facilitate collaboration
- Define clear objectives and performance indicators
- Communicate regularly on the progress and results of the partnership
- Remain attentive to the needs and expectations of the partner company to adapt
Conclusion
The opportunities for partnerships between businesses and NPOs are numerous and can generate essential financial and human resources to carry out the associations’ missions. By adapting to the expectations of each party and showing creativity, it is possible to build lasting relationships for the benefit of all. Don’t hesitate to get started!
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