Making An Impact With Charity Donations For A Rewarding Outcome

Charities appreciate every penny they get, but also struggle with the fact that donations come in small amounts, through one-off donations without any guarantee of future support.

NPC′s recent study revealed that over 70% of company related monetary donations are less than ￡5000. We all know that no long-term project can be run with this level of low support, unless there is a high number of donor companies or the project is small in size.

We recently conducted a survey earlier this year on how charities could work with companies more efficiently. For full survey results, please click here.

50% of charities that took part in our survey receive monetary donations from companies. The results reveal that almost all charities would benefit from companies stepping in and funding some part of their work. 50% of charities consider money to be the most important resource when it comes to partnerships.

"We are keen to work with companies in any way. Cash is always vital, but services and skills are just as important" - charity response from survey

The reality is that the funds given in hundreds or even several thousands of pounds are mainly used to support existing projects and to cover those costs which are not covered by grant funding e.g. some admin and maintenance costs.

This, in turn, does not always satisfy the companies as they wish to know that the money went to beneficiary work, not to admin. Administrative costs and other charity overheads are not something that should be avoided nor even minimised, an important contributing factor to a charity’s impact is how the charity is run.

Companies should be proud to support the structures of a charity with their resources, time, money, goods and services, as in the end it really benefits the beneficiaries if the charity is well-run and effective with access to all the resources it needs.

Valuing the Bigger Picture

By appreciating and supporting a charity’s end goal, you can easily see that this cannot be achieved by small incremental money donations. To have steady financial support can provide the charity with ease knowing it can deliver its vital work to beneficiaries. In cases where charities may be fundraising for medical research or fighting to instigating change, a longer-term financial commitment is even more crucial. Granting long term assistance e.g. annual support means in some cases, a special project can be created – together.

Finding The Right Partnership

Companies should look outside of the box a little when it comes to deciding the causes to support; our sympathy goes easily on the "fluffy animals” and our donations to those bigger 'top off the mind' charities, but there is so many more options available. In turn, charities should promote their unique selling proposition and their unique cause and theory of change more clearly. When it comes to reputational benefits, building an unusual partnership can be highly effective.

"We often feel we are at a disadvantage as we're a niche charity and medium sized, we would love for more companies to consider working with us and see the huge benefits they could bring to our beneficiaries!" - charity response from survey

Closing The Sale

However, charities feel very unsure as to how to approach companies to ask for longer term financial commitment. The barrier is not only the fact that companies do not always understand how charities operate and that charities are not very familiar with ‘sales-oriented negotiations’. Moreover, it is often the case that charities do not know who to contact and will be bounced around in the process of trying to pitch their case.

"Big companies - please make it easier for charities to get to the right people and make an ask. Being passed around is time consuming..." - charity response from survey

The Negotiation

When it comes to actual negotiations, it is good to have a start and end in mind in order to create a mutually understood project with pre-agreed resources and their function.

If a charity can put together an appealing proposal, which is linked to the company values and aspirations, companies will be more likely to commit to longer term and more extensive partnerships.

It is all about communication as this is the minimum companies expect to be given back. (To read more about transparent charity communication, see my Fundraising_April_2018_whatCharity_article )

Payment Plans

When it comes to money, there are several ways companies can deliver. A fixed annual donation or grant is the simplest one. Some funding could be given as a percentage of sales or it could be raised by the company themselves. Fundraising activities, which 85% of charities would like support with, not only deliver money but business charity reputation and raise awareness to the cause. Also, employee-driven workplace giving schemes are important and give power to the individual donors.

However, as some of these options will not guarantee a certain level of funding, the mutually agreed project can have implementation levels with goals or a minimum guaranteed funding level to secure the core parts of the project.

The Contract

A deal is a deal when it is sealed. Written agreements, which include a clear view of the deliverables and the responsible contacts from both ends, are the norm in a business environment. Companies could help charities become more ‘business like’ when it comes to forming partnerships as a top-up service to any grant or donation.

In this way, a charity-company partnership can be mutually beneficial, leaving both parties with with a true working partnership that exceeds monetary gain or an improved reputation.

Tiia Sammallahti is founder and CEO of whatCharity.com  - a social impact charity tech company who believes doing good shouldn’t be complicated.

Bridging the gap between charities and vital resources they need from both the public and companies whatCharity.com aims to change the dynamics of the charity sector. As LinkedIn changed recruitment, comparison sites changed insurance and Google changed how we access the world’s information, whatCharity.com enables charities, companies and individuals to create trustworthy connections and provides a brokerage platform for time, skills, money, goods and services

whatCharity.com has recently launched its cost-effective company solution which simplifies and revitalises the way companies and their teams work with charities. By creating a real-time marketplace, the platform also empowers and engages employees more effectively when taking part in charitable causes.