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Forging successful partnerships between corporations and nonprofits opens the door to opportunities for promotion for both. Financial advisors (FAs) have a unique opportunity to mediate campaigns and ongoing collaboration.
They can serve as facilitators between nonprofits and corporations by introducing clients to one another and opening opportunities for communication and shared goals. Here are some strategies to identify potential partners and how to establish mutually beneficial alliances.
1. Identify Potential Partnerships
The Bureau of Labor Statistics estimates there are around 299,000 nonprofits in the United States and around 9.2 million for-profit businesses. Finding a match may be complex with a limited pool of causes and companies being cautious about their investments.
FAs must consider the subtle missions of each brand. For example, if one sells thousands of cups of coffee per day in paper cups, they probably wouldn’t team up with a nonprofit intent on reducing paper waste. A better match might be investing in local youth groups or an organization that offers resources to working single mothers.
2. Assess Financial Stability
FAs are in a unique position to make some predictions about how well a business and a charity might perform in the future based on how stable their finances are. Within your vast network, you may know any number of good causes and leaders who would sponsor them. However, if the partnership fails because one or both parties has cash flow issues, it could negatively impact one or more clients.
3. Create a Partnership Proposal
Another way advisors can help is by coming alongside a charity and utilizing internal data to come up with a plan that benefits the nonprofit and the corporation. Using data to analyze the potential impact of partner campaigns can maximize the impact and help the team set S.M.A.R.T. goals.
Since financial advisors likely already have access to the organization’s financials, sitting down with the decision-makers becomes more intuitive. You can assess their strengths and weaknesses and create a proposal to take to a potential partner that shows the charity has a firm grasp of how they’ll spend the money and the impact it will make.
At the same time, you can outline the benefits to the enterprise when it invests in the nonprofit. Pull out facts, such as how many members the nonprofit has or what their media reach is locally.
4. Research Grants
In your spare time, you might want to look at possible grant solutions for nonprofits. Grants can come from the federal government or private entities. The better you understand how they’re structured, the easier it becomes to match nonprofit clients with the right option for them. Will the money help or hinder them because of all the attached expectations?
Understanding how grants work can also provide an opportunity to talk to clients about starting charitable giving aimed at causes they care about. They may want to find something their competitors haven’t embraced.
5. Agree on Marketing Initiatives
It’s crucial to figure out co-branding events, marketing plans and mutually beneficial advertising. Also, outline what to avoid. Around 34% of digital users shop online because an influencer recommended a product or service. However, you must carefully choose who speaks about your product or service.
It’s best to spell out in writing who makes the decisions and which parties must agree. If the nonprofit is excited about a controversial influencer and the company worries the person might give it a bad name, the two sides can disagree. However, if collaborations are spelled out clearly, it becomes easier to decide which influencer you’ll use for a collaborative campaign and which you won’t.
Unique Viewpoint
Advisors have a unique viewpoint of both nonprofit and for-profit businesses. Looking at aspects such as the mission of each, financial stability and how each engages the local community can help FAs find the best match possible. Taking the time to match the right players and come up with a well-structured agreement can mean the difference between a successful and a failed partnership.
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