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| Path: Main Street > Resources/Library > Research Articles > Feature Article |
Corporate support may "cost" charities more than they bargained forJanuary 30, 1995; Canadian FundRaiser
A hybrid of philanthropy and marketing, the new "strategic philanthropy" is considered the ultimate in corporate giving. Creating warm consumer fuzzies, enhancing profile and subtly generating business opportunities, it is a way for Canadian companies to work smarter and find better links between charities and their own interests.
On the other hand, if charities are only searching for corporate dollars, they run the risk of getting off-track, losing control of their program, or ending up having to grapple with political or ethical issues that are better avoided.
Speaking at a recent luncheon meeting of the National Society of Fund Raising Executives, Greater Toronto Chapter, Diane Lister, president of the Hospital for Sick Childeren Foundation addressed the need to better define relationships between charities and corporations. Lister cited the example of Imperial Oil's "Safe Kids Canada" campaign which raised both awareness and funds for childhood injury prevention. She noted that Imperial Oil was given the special status of founding sponsor, not uncommon in itself --- yet in a highly unusual move, the hospital also extended the corporation the right to fill one of 10 seats on its board of directors.
Any corporation will want an opportunity to measure the return of a pacesetting investment. However, the "cost" of this type of corporate support may be a lot higher than anticipated. Charities must reset the point of balance in order to remain free-standing, in control, and absolutely true to their mission. Lister made a compelling case for charities to build strong partnership relationships, but cautioned them to focus on their responsibilities as fiduciaries in a manner consistent with their goals. "Charities must learn to anticipate potential problems, then take measures to avoid some real lessons in life," she said.
Her suggestions for questions to ask prior to engaging in corporate discussions: Will the venture require board approval? Will the association or program be exclusive? What will the implications of exclusivity be to other donors, current and potential? Are gift acceptance and investment policies in place and are they "in sync" with the organization and its mission? Does the corporate donor have unstated expectations, such as future contracts beyond the pro bono work? Does the donor expect cause-related marketing to become a charitable endorsement? Will your donor lists and confidentiality be honoured? Will the public view the association as business opportunism? A real challenge here is to maintain the integrity of the charity.
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