Speak to any charity director about what keeps them up at night and they will say funding and where it is going to come from. Charity funding has always been a mixed bag, and is notoriously short term, but the last five years of economic challenges and austerity has made it even tougher.
One result of less public money finding its way to small charities is the increased focus on raising money from business. Indeed, one charity I was in a meeting with recently talked about the ambition of their Local Authority for corporate fundraising to entirely replace their own use of grants to fund charitable activity. The charity felt this was going too far, and while a valuable component of any funding pot, corporate funding isn’t a panacea.
So what role should corporate fundraising play?
I think the answer depends on two things we often talk about with charities: diversity and sustainability. Getting all of your funding from the Big Lottery or the local council is dangerous. Only one thing needs to go wrong for the whole organisation to be in trouble, and the same applies to corporate partnerships.
The charity sector also needs to be realistic about businesses: priorities are key for them. If the business was to have a bad year or a new CEO was to come in with different objectives, then that funding could be at risk. The amount of time these relationships take also needs to be considered, as corporate partnerships don’t come without challenges and a fair bit of work. Potentially charities could spend so much time building partnerships that the value simply isn’t there. It’s also important to think through whether that business is the right one to approach and a good fit for your charity. Money or not, if the vision isn’t aligned then it may not be worth doing.
The charity I mentioned has one of the strongest and most beneficial corporate partnerships I’ve come across. In fact, they are rightly held up by their local authority as a beacon of excellence. In my view, this is because of the equal relationship they have with their corporate partner, and because they don’t just access their money, they use their skills as well.
So, consider this: funding is going to be a key part of what charities can get from businesses, but it’s not the only thing corporates offer. Considering other ways that your charity may benefit from a relationship with a business may be just as valuable and lead to a long-lasting engagement. Whatever role corporate fundraising plays, we shouldn’t lose sight of this.
by Robbie Cowbury, Project Manager, Pilotlight