Amy Nisenson Non-Profit Consultant and Executive Director, The Mary Morton Parsons Foundation

1. Fostering Effective Nonprofit Corporate Relationships Amy NisensonNon-Profit Consultant and Executive Director, The Mary Morton Parsons Foundation NLP October 8th and October 15th

2. Fostering Effective Nonprofit Corporate Relationships DAY ONE

3. Introductions • Name • Your Organization • Your Experience with Corporations • The Contents in Your Trunk

4. © A.P.Nisenson Consulting Admin & Housekeeping • Format of the course • Timing and breaks • Restrooms • Dining options

5. © A.P.Nisenson Consulting Your Objectives • What do you hope to learn from this class?

6. © A.P.Nisenson Consulting Course Objectives • Understanding trends in corporate philanthropy • Why and how corporations give • Different types of corporate support • How do you search for corporate support

7. © A.P.Nisenson Consulting Course Objectives • Developing an effective proposal for grant money • How corporate funders evaluate your proposal • Corporate sponsorships • Developing an effective proposal for sponsorship money

8. © A.P.Nisenson Consulting Course Objectives Description of Homework Opportunity and Grading

9. Homework assignment • Using the information from class, develop a mock proposal for a grant or sponsorship. The proposal may be in support of a special event or a program or project within your organization, real or fictional. • You will also need to name at least 2 corporate sources to solicit for this project and explain why you think you are a fit. • We will be sharing the rough draft*** with others during the second class. • After class, you can make any changes to the draft and submit the final to me no later than Monday, October 29 at COB. • Submit via email at d.nisenson@comcast.net *** If you are doing a grant proposal, you do not have to submit a full grant proposal but enough information to show the need for the project, impact your grant will make, and the cost of the project. ***If you are doing a sponsorship proposal, you will need to talk about benefits to the corporation, etc.

10. 2011 charitable giving Total = $298.42 billion

11. Sources of contributions, 2011 • Total giving = $298.42 billion1 • Increase of 4.0 percent (0.9 percent, adjusted for inflation) • Individuals/households remain the single most important source • Individuals + charitable bequests = 81 percent of total • Foundation grantmaking = 14 percent of the total2 • About three-fifths of independent foundation giving is from family foundations • Individual + Bequest + Family Foundations = 88 percent • Corporate giving is an estimated 5 percent of the total

12. Trends in Corporate Giving • Giving by corporations and their corporate foundations was 5% of total giving in 2010 • Giving includes gifts of cash and in-kind gifts from corporate giving programs, and grants and gifts from corporate foundations • From 2009 to 2010, corporate giving increased 10.6% • In 2010, there was a large increase of in-kind donations by pharmaceutical companies of medicines to individuals which bolstered the numbers.

13. Trends in Corporate Giving Higher education received $4.7 billion from corporations and their corporate foundations in 2010, which was up from $4.6 billion in 2009. • Motivated by institution’s importance in educating person whom company wants to employ, numbers of the institutions graduates employed, and success of these graduates in the company • Universities and colleges conduct research on the company and industry in which the company finds important • Professors at institution conduct research in area company finds important • Company wants to ensure that institution has up-to-date scientific equipment • Company’s CEO, EVP CFO, or other high-ranking officers are graduates of the institution and/or serve on the governing board or affiliated foundation board of the institution and can direct the funds.

14. Recent changes affecting giving to nonprofits Economy has had a profound effect on philanthropy • Donors want accountability • Donors want nonprofits to implement best practices • Less dollars to give out-looking for less duplication and more collaboration • IRS pushing on nonprofit sector to become more results driven and accountable (changes to 990) • Donors (corporate) offering other resources besides cash-intellectual/technology

15. Recent changes affecting giving to nonprofits • Donors are recent business owners and leaders • Donors are younger than before when becoming philanthropists (used to community involvement) • Steve Case • Mark Zuckerberg • Donors are considering grants as “investments” • Donors expect that there be a Return on Investment (ROI) • Donors want to apply analytical thinking to gift giving –looking to “move the needle” • Promise Neighborhood

16. WHY DO CORPORATIONS GIVE? Customer perspective….. • Increase brand awareness/recognition • Improve corporate image/reputation • Increase customer loyalty, consumer purchasing and investment decisions • Build recognition as good corporate citizen • Address key societal issues

17. WHY DO CORPORATIONS GIVE? Company perspective…. • Reputation Building • Improving employee morale • Retention and new employee recruitment • Being a neighbor of choice • Brand enhancement

18. HOW DO CORPORATIONS USE PHILANTHROPY TO SUPPORT BUSINES S GOALS? • Communityresponsibility • Thriving community = Customers • Individuals are responsible for the success of communities • Working adults spend half of their working lives in workplace • Consumers want and will pay for good corporate citizenship

19. How does Philanthropy support Business Goals? • Community responsibility • Thriving community = Customers • Individuals are responsible for the success of communities • Working adults spend half of their working lives in workplace • Consumers want and will pay for good corporate citizenship

20. What does a company’s philanthropic mission look like? • Companies support employee involvement • Set policies and offer programs to encourage and support volunteerism • Companies invest financial resources • Support employees’ philanthropic interests • Respond to community needs

21. Objectives of a Company’s Philanthropic Mission • Strengthen communities • Align with company core values • Fulfill fiduciary responsibility • Enhance corporate image

22. What is the “Sweet spot” for corporations and philanthropy Sweet Spot Employee interest Customer interest Community needs Business interests

23. Who are the Stakeholders involved in corporate philanthropy?

24. Impacts of Philanthropy (Employee perspective) • Better service • Retention • Recruiting

25. Impacts of Philanthropy (Customer perspective) • Retention • Referrals • Deeper relationships

26. Impacts of Philanthropy (Shareholder perspective) • Invest more • Recommend more • Retain shares longer

27. The Ultimate Impacts of Philanthropy

28. Exercise Art Project: In 4 Small Groups, Draw a Picture of What Support From Corporations Means Without Using Any Words (10 minutes)

29. Direct Corporate Giving Programs: Grant making programs established within the company Expense is planned as part of the company’s annual budget HOW DO CORPORATIONS GIVE?

30. HOW DO CORPORATIONS GIVE? Corporate Foundations: • Company-sponsored • Private foundations that get its funds from the corporation • Usually a separate, legal organization subject to same rules and regulations as other private foundations • Endowed or pass-through

31. HOW DO CORPORATIONS GIVE? • Corporate sponsorships • An arrangement between a company and a not-for-profit organization, whereby the company provides funds, goods or services, in exchange for greater exposure • Financial support of a project or property by a corporation in exchange for publicity and other benefits associated with the property

32. TYPES OF CORPORATE SUPPORT Grants • Programmatic • Capacity-Building (improve organization’s systems and operations which strengthen ability to serve clients) • Awards • Capital • Challenge and matching grants

33. TYPES OF CORPORATE SUPPORT In-kind contributions—(not cash) • Product or service donations • Loaned equipment and facilities • Loaned Executive programs Specific examples: • Airline miles for staff travel • Secure ad space

34. TYPES OF CORPORATE SUPPORT Pro Bono • Professional services undertaken voluntarily • No payment exchanged • Uses specific skills of the professional (s) Specific examples • PR firm donates time and expertise • Website design

35. TYPES OF CORPORATE SUPPORT Employee involvement • Encourage employees to volunteer in their community • Paid release time for employees to volunteer • Corporate executives serving on nonprofit boards • Matching gifts (company match of employee’s gift to nonprofit) • Volunteer grants

36. Employee driven giving “Programs and policies that encourage and support employee involvement in the causes that mean the most to them.”

37. Deloitte Volunteer IMPACT Survey “Many influential business leaders and management gurus agree that the affinity that employees feel toward an employer has the power to create a competitive advantage that can be hard to imitate, and is inextricably linked to organizational performance. Sometimes intangible, its force is undeniable. Without a motivated and engaged workforce, even the most brilliant business strategies can falter.” http://www.deloitte.com/view/en_US/us/Insights/Browse-by-Content-Type/podcasts/a8712646f5ec2310VgnVCM2000001b56f00aRCRD.htm

38. Employee driven giving PAID TIME AWAY FROM WORK • Encourage participation in community service activities • Encourage employees to become individual philanthropists with their time, skills, finances • Educate employees about benefits and responsibilities involved in philanthropic work

39. Employee driven giving EMPLOYEE WORKPLACE CAMPAIGNS • Employee Choice (payroll deduction, one time deduction, personal check) • Allow for greater participation and satisfaction • Companies can brand campaign as own Examples: United Way, America's Charities, American Heart, American Cancer, Community Health Charities, Combined Federal Campaign

40. Employee driven giving Board Service Benefits of serving on Board from Community Perspective • Allows for more effective boards leading the nonprofit sector • Gives nonprofits access to broad range of skills and expertise

41. Employee driven giving Benefits of serving on Board from Employer Perspective • Exposes employees to new leadership opportunities • Encourages employees to develop new skills • Gives employees real community connections • Gives employees expanded professional networks • Gives company and employee high visibility in community

42. Employee driven giving EMPLOYEE GIVING PROGRAMS • Matching gifts • “Dollars for Doers” or volunteer grants • Hardship and disaster relief funds

43. Employee driven giving EMPLOYEE VOLUNTEER OPPORTUNITIES • Team-building opportunities • Increase community collaborations • Business networking opportunities • Leadership training opportunities Examples: • Lead/organize Habitat Build, Food Drive, etc • Serve on non-profit board

44. Corporations want their philanthropy to be strategic… Corporations are strategic in two ways-- • Results driven giving • Market driven giving

45. Results driven giving • “Top of the House” sets guidelines and focus areas • Has greater impact • Is more focused giving

46. Results driven giving Company determines the following: • What causes do our customers care about? • What causes do our staff care about? • What are our competitors supporting? • Can we differentiate ourselves? • What causes are relevant to our business? • What causes have both community and national implications?

47. Results driven giving Company determines GUIDELINES for limits on support: • Programmatic • Geographic • Ineligible organizations • Types of gifts -Multi-year pledges -Gifts to endowments -Ad space -Tickets or tables to special events

48. Results Driven Giving Company determines APPLICATION PROCESS: • In writing or online • Date specific deadlines • Attachments required -Board list -Donor list -501 ( c) (3) designation from IRS -Audited financials • Grant correspondence -Award letters -Decline notices -Reports required

49. Results driven giving • Company seeks out qualified programs/applicants to apply for funding or volunteer assistance (based on guidelines) • Require accountability from nonprofits -Track use of $ -Impact of $ • Nonprofits must be willing to share evaluation results where appropriate to increase impact

50. Market driven giving • Company is responsive to needs of each community where local employees live and work • Decisions are made by local community/market leaders • Recognizes that all communities are not alike • Still is consistent with Results driven giving