6 Benefits of Corporate Fundraising
There are countless benefits of corporate fundraising for charities and businesses alike. In fact, this is one of the most effective ways to solve some of the most complex problems which both kinds of organisations face.
By partnering up and offering support and expertise, businesses can help charities to thrive. After all, successful companies are experts at drumming up publicity, attracting funds, and generally getting things done.
These are all crucial skills in the third sector too, but often charities can struggle to use them.
Today, we’re going to cover everything that businesses and charities need to know about corporate fundraising. First though, let’s start with the basics.
What is Corporate Fundraising?
Corporate fundraising is when for-profit businesses help charities in their fundraising efforts. This can come in a couple of different forms, including:
Grant programs through company trusts and foundations,
Corporate fundraising drives.
In other words, companies may either give some of their own money to charities, or they might use their market position to help raise money on behalf of a charity.
This is fairly common for businesses of all sizes, but it’s the big international players which really shine here. On the one hand, business owners want to use their position to support causes they care about.
Beyond this though, there are more concrete business benefits to corporate fundraising.
Before we look at these, let’s think about some of the key benefits of corporate fundraising for charities.
Benefits of Corporate Fundraising for Charities
Raising money is central to everything charities do. Without enough income coming in, the lights will quickly go off on any third sector organisation. Even so, most charities find it challenging to achieve a sustainable funding model.
This can be because of a lack of resources, expertise, or public image.
These are the exact problems which corporate fundraising can help to solve, helping charities to secure funding in the most effective way possible. Let’s take a look at how this works in a little more detail.
1. Sustainable Funding
When it comes to charity funding, sustainability is key. This means having the resources to deliver your projects in the immediate future, as well as being able to plan your activities over the coming years.
There are a number of ways to ensure that your charity’s fundraising is sustainable. These primarily stem from two key principles:
Securing funding from a diverse range of sources,
Developing relationships with major donors, offering long term funding.
Corporate fundraising helps charities to meet both of these criteria. This works most effectively when charities and businesses create long term relationships, where the business conducts public fundraising drives on behalf of the charity.
Grants and other direct funding streams from private businesses are also an effective way for charities to secure sustainable funding. These are often large donations, which can help charities to conduct long term financial planning with confidence.
2. Increased Fundraising Resources
Another key challenge which all charities face is not having enough resources to conduct fundraising activities on their own. Normally, this is done by a small number of paid staff, along with a small army of volunteers.
Other resources which charities often lack include physical materials, budget for public relations, physical premises, and brand awareness. Partnering with a private business can help charities to access all of these resources.
The reality is that private companies just have much better access to these resources.
As a basic example, when businesses get involved in corporate fundraising, they’ll often deploy their staff as volunteers, collecting donations on the streets. They might equally offer specialist skills like marketing, graphic design, or accounting for charities.
3. Improved Publicity
Some large charities have a strong public image, but these are the lucky ones. The majority of organisations in the third sector are relatively unknown by the general public. One of the major benefits of corporate fundraising is boosting your publicity.
Again, the key thing here is that businesses tend to have a stronger public image.
On one level, this could be a major international brand, which is a household name. More often though, charities partner up with businesses who have a positive image in their local area.
Benefits of Corporate Fundraising for Businesses
Of course, there are several benefits of corporate fundraising for businesses too. After all, businesses wouldn’t partner up with charities otherwise. As we mentioned earlier, there is an element here of business owners wanting to support causes close to their hearts.
However, there are also key business benefits of corporate fundraising. Here are some of the most significant.
1. Corporate Social Responsibility
Corporate social responsibility is all about demonstrating your business’ values. These days, this is a key decision factor for many customers. That is, people want to buy from companies who share their values.
Corporate fundraising is the perfect way to do this.
If customers know that your business supports a cause that they care about, they’ll be more likely to buy from you. After all, this effectively means that a portion of their purchase will go to supporting a good cause.
This can also help with recruiting staff, as employees will be more willing to work for a company which supports causes they care about.
2. Team Building Opportunities
Another benefit of corporate fundraising is giving your staff a chance to socialise and work together in a different context. This is also a great way to get members of different teams collaborating with people they might not normally meet.
This helps to build a sense of loyalty and community in your workplace.
For example, if your staff volunteer to hit the streets and collect public donations, they’ll get the chance to meet and interact with people across the organisation, which helps to build a better and more open corporate culture.
3. Staff Development
Corporate fundraising also helps your staff to learn new skills, or develop existing ones in a different context. Essentially, this means working on projects which your team might not normally get exposed to.
Chief among these are interpersonal skills.
Whether it’s shaking a bucket, manning the phone lines, or taking part in a charity event or challenge, corporate fundraising is an incredible chance to let your staff learn new skills in a fun and relaxed environment.
How to Get Started with Corporate Fundraising
Of course, there is still the matter of beginning a corporate fundraising partnership. Whether you are a charity or a business, the key thing is finding partners which share your vision and values.
For charities, you’ll also want to know that corporate fundraisers are going to be effective. Similarly, businesses will need to be confident that their charity partners can spend their funds properly.