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Mobilizing Businesses: Working with Corporate Volunteer Programs. DOVIA ’ s Fall 2014 Symposium. Opening Plenary Susan Hyatt. Want the Slide Handouts?. Text Email Address and Name to: 1-970-999-1440. 8 Biggest Mistakes Nonprofits M ake Approaching Businesses Business Benefits and Needs
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Mobilizing Businesses: Working with Corporate Volunteer Programs DOVIA’s Fall 2014 Symposium Opening Plenary Susan Hyatt
Want the Slide Handouts? Text Email Address and Name to: 1-970-999-1440
8 Biggest Mistakes Nonprofits Make Approaching Businesses Business Benefits and Needs Current Trends in CSR, Business Giving and Community Involvement Ways to Engage with Businesses Metro Denver Opportunities Setting the Stage - Topics
Increasing Focus on Volunteering • 59% of companies gave more in 2012 than in 2007, the year before the global recession set in • While direct cash donations dominated at 47% of total giving in 2012, non-cash contributions have been growing at a faster rate of 10% or more in each year since 2008 • Paid-release-time employee volunteer programs were offered by 70% of large companies in 2012, compared to just 53% of companies before the global recession Source: CECP, Giving in Numbers 2013
Non-Cash Giving Post Recession • 2008-2009 due to declining revenues - companies tightened cash budgets • Began exploring new ways to invest in communities strategically with non-cash resources (e.g., professional volunteer services, merchandise, etc.)
Mistake #1 Thinking “Donors” instead of “Partners” Don’t consider business needs or your program as having “assets” – no win/win “Donations versus Investments”
Mistake #2 Making narrow “old school” asks: silent auction items, selling gala table tickets, or grants, Not really wanting volunteers
Mistake #3 Doing NO research on a company before approaching them
Mistake #4 Impersonal asks – using a one size fits all approach Being reactive instead of proactive
Mistake #5 Not being creative about how to engage with businesses Doing the “same old” hands on volunteer activities/events
One of the Biggest Challenges with Nonprofits… Many nonprofits can’t succinctly describe what they do – their message or mission. They can’t get to the point and spend too much time describing their program models. --Amy Hall, Eileen Fisher
Mistake #6 Don’t make a compelling case for why your program/organization is a great investment No info on extent of problem – how you’re a solution
Mistake #7 Executive Director, Development Director, Volunteer Manager not on same page! Issues: Company contacts not coordinated Last minute assignment to volunteer manager Not all hands on deck
Mistake #8 – BIG No No! No ongoing communication and not saying thank you…in a timely manner!
Motivations for Giving • Want to be engaged in our community • Someone they respect asked - even if it’s isn’t their top priority cause • Want to use the power of business to help make real change
The Engagement Continuum Source: The Collaboration Challenge: How Nonprofits and Businesses Succeed ThroughStrategic Alliances. James E. Austin, Drucker Foundation
Business Benefits The "Feel Good" Factor Tax Deductions Risk Management
Company Reputation • 89% seek to improve their image and reputation.
Sales • 93% of companies say they give to improve customer relations. 50% to improve sales.
Employee Issues • On average, at least 31% of employees are disengaged. • 4% of those who are disengaged are hostile. ..they are speaking poorly of company to all their friends and family and most likely stealing office supplies. (Seriously.) Disengaged employees cost employers $350 billion every year just in U.S.
The best-performing companies know that an employee engagement strategy linked to corporate goals will help them win in the marketplace. Engaged employees are more: Productive Profitable Customer-focused And...more likely to withstand temptation to leave Business Case – CSR and Employees
Benefits of Employee Engagement Companies where employees were more engaged: • profitability jumped by 16% • general productivity was 18% higher • customer loyalty was 12% higher • quality increased by 60%
Business Benefits of Volunteering • Employee • Engagement • Morale/Satisfaction • Organizational Pride • Organizational Commitment • Productivity • Recruitment and Retention • Skills • Team Effectiveness • Management-Employees Relations • Corporate Reputation (internal) • Workplace Culture
Trends in CSR & Business Giving Be known for being good community citizen: halo effect
Trends in CSR & Business Giving Integration of social responsibility into branding and reputation
Trends in CSR & Business Giving Strategic giving aligned with business goals. Company-selected causes for support
Trends in CSR & Business Giving Moving beyond checkbook philanthropy – want greater hands on involvement Focus on Employee Engagement
Trends in CSR & Business Giving • More creative due to economic stress, more non-cash investments
Trends in CSR & Business Giving • Go deeper with fewer partners, integration across departments and giving strategies • E.g., Grant + Volunteers
Trends in CSR & Business Giving • Time is short • Fixed term projects that offer something unique • Tangible and meaningful that lead to impact
Trends in CSR & Business Giving • Greater emphasis on ROI and overall impact
Trend: Millennials (born 1980+) • 92% of companies should measure beyond economic success • 86% companies should make social impact • 52% should use innovation for good
Impact of Millennials (Gen Y) • Denver is the #1 city where 25-34 year olds are moving • 40% of the U.S. workforce comprised of Millennials by 2020 • 88% would choose employers whose social responsibility values reflected their own • 55% believe it is very or extremely important to work for a company that is socially and environmentally responsible • 86% would consider leaving an employer whose social responsibility values no longer reflected their own
Nonprofit or Program Needs • What do you REALLY need? • What planned budget allocations could be freed up drawing on business resources? • What projects have you been wanting to do but haven’t had the time or resources to make happen? NOT JUST MONEY/GRANTS…
In Kind Donations • Company Products • Gift Certificates or Auction Items • Equipment (loans or donations) • Space • Business Support Services (e.g., copying) • Collection Point • Other
Commerce-based Engagement • Cause Marketing • For Benefit Products • Limited time campaigns • Event Sponsorships and Paid Advertising • Discounted Sales to Nonprofits • Fundraising and Affiliate Programs • Vendor Contracts, Fee-based Joint Programming • Other
Business Budgets to Tap • Grants (Company line item, Foundation or Donor Assisted Funds) • Special Projects (CEO Special Funds) • Volunteering/Dollars for Doers (Human Resources or Foundation) • Workplace Giving and Matching Funds (Human Resources) • Cause Marketing (Marketing) • Product Donations (Marketing, R&D) • Sponsorship (Advertising/Marketing) • Community/Public Relations
Tapping Businesses for Their People • Employees (current or trainees) • Families • Retirees • Customers • Business Colleagues, Suppliers, Vendors
Employee Volunteering • Paid Leave Time (or On Own Time) • Company Sponsored Service Projects (short-term) • Company Sponsored Ongoing Volunteering • Signature Service Projects • Board Service • Loaned Executives • Sabbaticals
Why Volunteers Leave 1/3 of volunteers do NOT donate their time the following year - at any nonprofit. That is an estimated $38 billion in lost labor!! Among nonprofits: • 55% don’t match volunteer skills with assignments • 65% failing to recognize volunteers’ contributions • 70% don’t measure the value of volunteers annually • 75% fail to train and invest in volunteers • 81% don’t train staff to work with volunteers Is this YOUR organization…???
Employee Volunteering Trends • Moving from episodic to more long-term impactful volunteerism • Move from hands on to skilled and pro bono volunteering • Volunteers included as a key resource with grants • Talent management including balance between manual labor and pro bono skills • Inviting customers and others to volunteer together
Think Talent Management Invest in volunteer infrastructure at your organization to: • Plan • Recruit • Develop • Place • Recognize • Retain volunteer talent • Is YOUR volunteer talent slipping away through a leaky bucket?