Section 9. Obtaining Corporate Resources

Learn about corporate giving, all of the different ways it happens, and what motivates companies to help nonprofit organizations.

 

• What is corporate giving?

• Why do corporations give money to not-for-profit organizations?

• When should you try to tap into corporate resources?

• When shouldn't you try to tap into corporate resources?

• How do you obtain corporate resources?

It's probably a thought that has occurred to every person who has ever run a not-for-profit organization. Maybe you have it when you drive by the new 17-story building that houses the local headquarters of an international coffee company. Or it comes to mind when you watch another high-budget soda pop commercial. Or maybe you have it every time you're passed by a car that's worth more than your organization's annual budget.

Whenever it happens and however you phrase it, the idea is basically the same: there's a lot of money in the business world. If our organization could just get our hands on a tiny fraction of it--oh, the places we'd go! The things we could do! How could we possibly get some of that cash?

The good news is, maybe it is possible to obtain some of those resources. Because--as you know--there is lot of money in the business world. And donations, or partnerships with the business world, occur every day, in many ways, in many organizations not so different from your own.

That's what this section is all about. On the next few screens, we'll look at corporate giving as a whole. We'll talk about what it is, and all of the different ways it happens. Then, we'll move on to what motivates companies to help not-for-profit organizations, and when it might (and might not!) make sense for you to try and tap into corporate resources. Finally, the meat of this section will be taken up with the nuts and bolts of how your group can get hold of corporate resources.

One note, before we begin: the focus of this section is geared towards obtaining money and other resources from large national (or international) corporations. That's not to say that you should ignore smaller, local businesses. On the contrary, that's a great place to go for help. However, it tends to be a bit easier than getting money from larger corporations. Many of the ideas in this section can be simplified or used "as is" to get local help as well. By focusing on the more difficult task--obtaining help from larger corporations--this section aims to put you in a position to obtain resources from any company, small or large.

Ready? Then let's go! The for-profit world awaits!

What is corporate giving?

Simply put, corporate giving is any kind of support for not-for-profit organizations or causes that comes from members of the for-profit world. While most people tend to think of corporate giving as cash-money, the truth is, it can occur in a lot of different ways.

You might think of corporate giving as anything you obtain from a business person (in her professional capacity) or an organization that you would have had to pay for if they hadn't offered it.

With this in mind, expand your ideas on corporate giving to include all of the following:

• Cash--money in the bank, dead presidents, the green stuff. What people most often think of when they think of corporate help.
• Executives-on-loan--for example, a local accounting firm might offer one of its members to help your organization apply for nonprofit status--a tedious process for which most groups need outside help.
• Corporate sponsorship--this is a broader form of corporate giving, which may include a wide variety of resources. You might think of corporate sponsorship as a 'total package' taking care of all (or a great many) of the costs of a special event.

For example, a corporation might sponsor local athletes training for the Olympics, making sure they have everything they need from housing to uniforms to travel expenses. Or, take the example of a United Way golf tournament. These happen all over the country, and are usually sponsored by a local corporation or group of corporations. Companies and individuals pay to enter, and all profits go to the local United Way.

• Employee volunteerism--this form of corporate giving seems to be on the rise. This, too, can take many forms. A corporation can simply suggest to its employees that such and such organization needs assistance, or the employees might decide on their own to volunteer there. Further, the idea of "release-time" is becoming more popular, where organizations allow their employees to volunteer at a local organization in place of some of their regular work hours (for example, one afternoon a week).
• Matching programs--this is another way to get corporations to involve their employees in giving. In such a program, every dollar that employees give to the organization is matched by the corporation itself.
• In-kind contributions--this is when an organization gives you things that they sell or produce that you might need.

For example, the Apple Corporation has a long history of giving computers to schools. On a smaller, more local level, the local office supply company might be willing to give you the paper to print your newsletter (and a local print shop might take on the job for free, or for a discounted rate!)

• Cause-related marketing--this is another form of giving where the corporation agrees to give a certain amount of the profit from each product sold to a specific charity, such as your organization. This can be a good marketing technique for the company. If you were faced with two similar products at similar prices, but knew that the purchase of one would mean a few cents went to a cause you believe in, there probably wouldn't be much of a question as to which one you bought. An added bonus is the marketing it does for your organization. It's yet another way to make sure that your organization's name is out and being talked about in the community.

A similar tactic is to get a group of similar businesses to donate a percentage of profits to a relevant organization or group of organizations. For several years, several booksellers in the Northeast participated in "Buy a Book for Literacy," donating 10% of their profits on a given day (usually the Saturday after Thanksgiving) to three literacy programs. In the same area, "A Piece of the Pie" was a whole week in which many area restaurants and food stores donated a share of their profits to the local food bank. This is a way to get a fair amount of money without having to deal with a major corporation or hit any individual business for a bundle. Some of the bookstores? donations, for instance, were as little as $10 or $20.

So, although we tend to think of corporate giving with dollar signs in our eyes, try putting images of new copiers there instead. Some estimates say that approximately one-third of all corporate giving occurs in forms other than money. The bottom line: If you want to go for the corporate dollar, think about how you are most likely to get it--and how you could use what you might get.

Also, remember that corporate giving, broadly defined, can vary greatly depending on the size of the company offering the donations. That is, it can be the corner bakery donating muffins for your fund-raising bake sale, a new office complex donated by a locally-based multinational corporation, and almost anything in between.

When it does occur on a large-scale, formal level--such as from a multinational corporation--it often occurs in one of two ways: through company-sponsored foundations or corporate giving programs.

Company-sponsored foundations are legally separate from the for-profit company that starts them, but they maintain close ties with the parent company, and their giving usually reflects company interests. Generally, they maintain small endowments and rely on regular contributions from the parent company and/or subsidiaries to support their giving programs. Since they are private foundations, they have to follow appropriate regulations that apply to all private foundations, including filing a yearly Form 990-PF with the IRS.

What's a Form 990-PF?

It's simply the tax return that private foundations are required to file with the IRS. For grant seekers, this form is where you will often turn when researching a foundation. It is especially useful when you are researching a foundation that doesn't issue an annual report or have a website. By going over a corporation's 990-PF, you can learn:

• Basic financial data about the corporation
• A complete list of grants the corporation has made
• Names of the foundation's trustees and officers
• Other foundation information

Grantseekers can obtain these forms in several places:

• Order them from the IRS: write to the Ogden Service Center, PO Box 9941, Mail Stop 6734, Ogden, Utah, 88409. Include the foundation's full name and the city and state in which it is located. (You will be billed for the cost of the copies.)
• State attorney generals may have them for corporations in their states
• Through The Foundation Center -- you can examine the forms for free, at the Center-run libraries, or request copies.

Corporate direct giving programs have much less stringent requirements than company -sponsored foundations.

For example, they are not regulated and required to file with the IRS. Many times, they are used as a supplement by the company to support programs that do not fall under the guidelines of the foundation. These programs frequently include employee matching gifts and in-kind gifts as part of their grantmaking activities.

However, for all of the advantages there are for not-for-profit organizations to try to obtain corporate resources, there is one very important caveat. Unfortunately, corporate giving is not as common as you might think (or as corporations would like you to think!).

The simple fact is, most money, for most not-for-profit organizations, comes from other sources.

Primarily, these include public or private grants and individual contributions.

What does this mean for you as a not-for-profit organization? It may mean that corporate giving will rank lower on your priority list compared to other forms of asking for money, including grants and individual contributions. Your specific answer will depend in large measure upon the specific corporations and corporate giving policies where you live.

Why do corporations give money to not-for-profit organizations?

If you're going to go after the corporate dollar, it's important to understand why corporations give away money. Of course, you should know this regardless of whether your funder is a major oil company or a Benedictine monastery. Understanding the motives of givers means you can be more competitive in obtaining their resources.

With corporations, however, this becomes a bit simpler. When corporations give away money, the bottom line is almost always the same:

• Corporations give away money in order to make money.
• If you've decided to try and obtain corporate aid, this idea should remain firmly implanted in the forefront of your brain.
• Of course, money making as a result of corporate philanthropy comes about in a round-about way.

Corporations will give away money in order to:

• Enhance their corporate image
• Improve the community in which the corporation is located, to attract and keep a strong work force
• Support education and research that will lead to a better prepared work force, or new technology that they may be able to use (e.g., grants to universities)

... All of which, in the end, leads (corporations hope) to increased sales and more money.

We're not saying there aren't good-hearted people in the business world. Ideas of helping others and giving something back to the community do exist within many corporations and are ideals held by many executives. But most of the time, these motivations take a back seat to company profitability and survival. To be competitive, before you start trying to attract resources, you should ask yourself how your request can help the company achieve its goals.

When should you try to tap into corporate resources?

It's more likely that your search for corporate funding will be successful if your organization meets some or all of the following criteria.

You are one of the types of organizations to whom corporations generally give money. In her book Fundraising for Social Change, Kim Klein explains that research has consistently shown that when large corporations give away money, they usually give it to groups who fall into one of the following categories:

• Organizations that improve the community where the corporation's employees live, such as local symphonies, parks, museums, and libraries.
• Organizations that provide volunteer opportunities for employees, or to which employees make donations. As we noted above, sometimes corporate giving comes in the form of matching employee donations.
• Groups that help their employees be more productive by addressing problems employees have, such as alcohol and drug abuse or domestic violence.
• Research efforts that will help the company invent products or market existing products.

For example, some university departments get a lot of their research funding from corporations.

• Educational programs to ensure that that company will have a well-trained workforce in the future. For example, they might help literacy programs, support innovative schools, or offer scholarships.

The corporation has a history of donating to organizations or causes similar to your own, or they have given money to your organization in the past. Many times, organizations will have their own "pet causes"--organizations and issues that they especially like to support. If your organization helps women who are leaving abusive relationships and a local corporation is always promoting its commitment to helping women reach their highest potential, then you might have a great match.

You know someone at the company who might be willing to further your cause from the inside.The importance of having a personal connection with someone in the company can't be overstated. People fund people, even more than they do ideas or causes. They want to know that the person running the organization knows what she's doing; that the organization or program has a better-than-average chance of actually succeeding in what it says it's going to do.

Also, if you think about it, it's much harder to say "no" to someone you know; especially when you know that the issue is very important to them. Think about it--if a friend stops by and is trying to raise some money for breast cancer because his mother passed away from the disease, chances are pretty high you'll help out, at least a little bit. It's less likely (though still possible) that you would help a complete stranger in a similar situation.

Now, we're not suggesting that you take advantage of your friends. But an honest, forthright request, with the understanding that "no" is an okay response, and won 't harm your relationship--can open the doors to many resources when you know the right person.

Your organization will directly benefit the area where the company is located or does a great deal of business. This is especially true when you're talking about a very large corporation. It's just good business for the company to improve the community in which it works. Their current employees will be happier, they will be able to attract more, well-qualified employees to the area, and they get the positive press of being a "good corporate neighbor."

What does this mean for a local not-for-profit? Well, if you look at a huge corporation and think, "Gee--they have tons of money! Let's grab some!" chances of success are much greater if you're saying, "Gee--they have tons of money down the street!" That 's when it's time to go for the gold.

It makes most sense for your organization. Sometimes, when you've checked out all the possibilities, an attempt to get corporate funding looks like it will be easier and/or more cost-effective than attempts to tap into other funding sources. This might happen for a lot of reasons. Maybe you have an MBA-turned-not-for-profit -manager on your staff, who really understands the corporate world and has a lot of connections there. Maybe your local fund-raising drives just don't seem to cut the mustard. Or maybe you've become aware of a request for proposals (RFP) from a corporation that you know you would be very competitive for, and you could probably just modify an old grant proposal to apply. But if something seems to make sense to your organization--even if you don't meet any of the other points we list above-- then trust your gut and go for it. If you're successful, the payoff will be worth it.

When shouldn't you try to tap into corporate resources?

On the other hand, sometimes it really doesn't make any sense for your organization to apply for corporate resources. Think twice, and then think again, about taking the time to apply for corporate resources when any of the following criteria apply:

• Your work is very controversial. Remember--corporations give away money in large part to improve the community, and to gather goodwill. The latter is less likely to happen if they support you in a controversial project, such as giving condoms to teenagers or clean needles to drug addicts.
• You don't wish to appear to endorse a particular product or company. The fact is, if you accept money or other resources from a company, you are essentially saying, "this is a great group. We think you should buy their products/services. "

(Of course, some groups may take the tactic that it's better that you should be spending their money on something good, than having it go to something you don't believe in. It's an old debate, and yours certainly isn't the first organization to discuss it.)

For example, your organization might be offered a gift from an organization which you know has a history of racism. Your group may not be actively involved in combating racism--maybe you're more interested in increasing local interest in the arts--but nonetheless, you aren't sure you want to be affiliated with that group in any way at all. And like it or not, you are when you take their money.

Answers here aren't always clear. Maybe your organization is actively involved in trying to break down racial misconceptions and build bridges between different ethnic groups. And the same company above (maybe under a new CEO) offers you financial assistance, in an attempt to rebuild their image. However, there's a lot of history between your organization and the company; and some of it is very, very bad. Do you accept their help?

Maybe, maybe not. But certainly, members of the organization should think hard and discuss the consequences before any decisions are made.

• Corporations in your community are not used to giving donations, or donating to your type of work. Large corporations in particular tend to give their money in very specific ways, focusing only on one or two areas such as education, human rights, or youth development.

If your work is centered around public health, for example, you probably won't want to spend too much time wooing Apple Computers, who generally finance educational projects, and often give money to schools. You'll want to find other, more appropriate, avenues.

• Supporting your work will probably not directly or indirectly generate revenue for the corporation. Again, for most companies, the most important concern is continuing to make a profit. If donating to your organization won't help to do that--at least indirectly--then it's less likely that the company will help your organization out.

An important corollary to this point is a reminder that when you do get resources from corporations, publicize it! Thank the corporation publicly, use their logo on your printed materials--whatever it takes so that the company feels that helping you out is a smart thing to do. Of course, make sure to check with the corporation first and make sure that whatever you want to do is alright with them. It usually will be, but it pays to be careful.

• Your organization's goals for the resources are unclear. When you are not entirely clear why you are asking for money, how much you need, and what you will do with it, that's a good time you to step back and think a bit before you ask for help. In other words, it makes less sense to tap into corporate resources when your request reflects more of a scattershot approach than part of an overall funding strategy.

How do you obtain corporate resources?

So... you're ready to take the plunge and try to get some money from the big boys. How do you go about doing it?

The process can be broken down into two parts, preparation and execution. Although it may be tempting, especially considering all of the diverse demands on your time, don't skimp on the preparation. Time spent to thoroughly research possibilities will pave the way to a smooth execution of your request.

Preparation

• Consider what your organizational needs are. Do you need a bigger or better trained staff? Office equipment? You might break your needs down into two general categories: immediate needs (we really need a new copier; this building could use a coat of paint) and long-term needs (we need a stable, continuing source of funding for our programs; we need to implement ongoing staff training). Another way to think of this is, "If someone could give your organization anything, what would you ask for first? And then what?" Because the truth is, there are organizations out there that could give your group pretty much whatever you might need. The first step to getting it, though, is figuring out what, exactly, it is.
• Research local companies or national companies with a strong presence in your community. Information on local companies can be found from the chamber of commerce, by talking to people around town, and, of course, by requesting information from the company itself.

Researching national companies can be a little more difficult, but usually not much. Many corporations have websites that explain their corporate giving philosophy. The Foundation Center has a directory of corporate grantmakers on the Internet which can be a good place to start. (See Resources). There are also a tremendous number of printed directories, some of which are listed in Resources as well, that can give you an idea of existing foundations? guidelines. Further resource on private company foundations can be found in their 990-PFs, as we discussed above.

When you are doing your research, some of the basic things that you will want to learn about corporations include:

• Who makes a point of giving? That is, which specific corporations have a history of giving, and also what type of corporations generally donate to your cause and similar causes. Start broadly. Even if you have a pretty good idea of who you want to ask, this might be an excellent opportunity to look at other possibilities as well, and see if there isn't another great source of aid out there perfect for your group.
• When the companies have given resources, who have they given it to? Look at both organizations and specific issues that each company has funded. As we stated above, many larger corporations only make donations in one or two areas.

For example, Microsoft has a history of helping out libraries. On the other hand, recent (Spring 1999) grants from the Ben and Jerry's Foundation include a broad range of issues-- everything from environmental aid to improving housing to mobilizing against sweatshops.

• How does the company tend to donate resources? As cash? Executives on loan, or flex time for their employees? Gifts of equipment or services that the company produces?

And, of course, there are other ways companies can give--they can sponsor a little league team; they can take out an ad in the ad book for the school play; they can give you a break on printing; and many etceteras. A little creativity is called for--and it's your job to help corporations be ingenious.

This point is especially important for working with smaller companies, who might want to help, but don't have tremendous resources to do so. For these companies, you may want to consider these more imaginative gifts-in-kind--things you need that would be less of a bite out of their pocket book.

Examples might include a printer from an office supply store, free Internet access from your local provider, a free dinner at a local restaurant to thank your volunteers, or a small clam shop donating the profits from the sale of tartar sauce.

Even with larger companies, however, you'll want to learn how they tend to make their donations, and check to see if the potential donations match up with what your organization really needs.

• Who are the CEOs, VPs, Board members, and other important higher ups in the company? Knowing something about them personally (if that's possible) might give you a better idea of causes they are likely to support or be against.

For example, if the CEO of an organization is a strong fundamentalist Christian, funding for your Planned Parenthood clinic might be out. On the other hand, if you find in your research that her older brother is mildly developmentally disabled, you might have a perfect candidate to approach for funding for your jobs program for that population. While some of this information will be harder to obtain, some basic information on CEOs of larger corporations can be found in the Corporate Yellow Book.

• How much money are the corporations willing to give? You may be looking for $25,000, but the maximum award from a promising foundation is only $10,000. Again, this isn't necessarily a stopping point--it is possible to apply to more than one source at a time--but again, it's something that may figure into your calculations.
• What are the requirements of the corporation for asking (and receiving) assistance? Get a copy of their guidelines, and work from these. Grantmakers in all types of foundations say that one of the most frustrating things they have to deal with is requests from people who have not followed their requirements. Guidelines are often, though not always, in writing and publicly available. They will generally also give you information on eligibility, typical grant sizes, writing formats, special instructions, and sometimes contact people you can call upon for help. This type of information is invaluable; ignore it at your peril.
• What's going on in the local business scene? Another way you can "prepare" is to stay knowledgeable about it.

For example, you might want to read the business section of your local newspaper, or even more specialized local business newspapers or journals. Whose profits are up? Who is hiring new employees, or starting a new plant nearby? Whose stock is splitting, and who looks like they are about to be part of a corporate takeover?

This information can help you. As a rule of thumb, the better a company is doing financially, the more it is likely to expand its corporate giving.

The larger point here under "preparation" is to learn as much as you can about the company and its giving policies before you ask for a meeting or start writing a proposal or letter of inquiry. Solid preparation increases your chances of success, and the time spent usually pays off. It's the same reasoning as learning about prospective employers before applying for a job (or choosing among offers), or, for a prospective student, learning as much as you can about your top college choices.

Execution

Make personal contact with representatives from the corporation.

If you can, you might try to meet with representatives from the corporation to get a better idea of what they want in their proposals, and just more of an overall feel for the company and its giving policies.

If you know someone who works at the company, you already have a foot in the door. Ask them if they might be able to set up a meeting for you with the appropriate person. Failing that, ask a mutual friend of someone who works at the corporation if they might be able to set up a meeting for you. Most people are willing to say to a colleague, "Hey, I've got a friend who is doing some great work. I think it might just be the type of community investment our company wants to make. Would you mind taking a few minutes to hear him out?"

In larger companies and especially, in company-sponsored foundations, there are also often contact people whose job it is to meet with you as a matter of course. They are usually folks who are actually interested in giving money away, and they may be more sympathetic than anyone else you can talk to at the corporation. In addition, they are generally extremely helpful in actually working up a proposal, since it's easier for them if your stuff comes in the form they want.

If you really can't find any connection that you have with the company, then go ahead and call "cold." It's much harder--though not impossible--to get a meeting that way.

And before you go to that meeting, be well prepared. You should thoroughly understand the company's work and its giving policies. And be prepared with thoughtful questions, but -- and this is important -- not thoughtful questions that are answered on page one of their annual report. No one likes to feel that his time is being wasted--and that's the last way you want a potential funder to feel.

When you meet with a representative from the company, you should also be prepared to answer tough questions about your own organization. If you have a "press pack" of informative papers, brochures, etc. about your organization, bring that along to leave with the corporation.

Make your formal request for assistance.

Write your proposal, carefully following the guidelines stated by the corporation. In your proposal, you should be very explicit about the benefits to both the corporation and the community at large.

Writing a grant is a process which can be fairly involved (remember: there are people who make their living doing just that!), and explaining how to do it well is beyond the scope of this Tool Box section. Instead, we suggest you look at Writing a Grant, to get more information on how to do it right.

And, of course, for smaller requests to local companies, you may not need to do this at all. A conversation with someone in the company might be enough to get you what you need.

If appropriate, celebrate!

If you've managed to obtain some much-needed resources, congratulations! Finding the resources you need takes a lot of time, careful consideration, and elbow grease. When you've managed to put these together and get what you need, it's time to pop the champagne and congratulate yourselves on a job well done.

Follow up.

If you did get help from the corporation, thank them-- in person, with a handwritten card, or (better yet) both. Let them know specifically how their contribution has helped your organization ("Because of your generous contribution to the Fed Up with Hunger initiative, an additional 50 children will go to school with full stomachs during the upcoming school year."). Further, make sure that you continue to keep them informed of your organization's work. They might just see another program they would like to fund!

Even if you don't get the money, it's probably still a good idea to express appreciation for their time and consideration, especially if you are dealing with a local company. You may want to have a continuing relationship with them--and sometimes, even if you don't, you will still be encountering them anyway--so keeping up that relationship makes sense.

Also, learn from the rejections. You might ask for an explanation of why the organization didn't support your work, and what they would suggest you do in future proposals. Many people and organizations are happy to explain to you why you weren't funded, and to give you tips on how to be more competitive in the future.

In Summary

Many of us in the not-for-profit world think of the business sector as a huge vault, able to bestow on us unlimited wealth--if only we could crack the code. While the reality of corporate giving is probably somewhat less rosy than that, there are a lot of possibilities for not-for-profits--especially for not-for-profits who have done their homework. Good luck in making the corporate world another important, profitable part of your organization's overall funding plan.