A nonprofit alone can only do so much work, and even with the right team and access to resources, the organization will only have so much reach within a community. This is where a partnership between a nonprofit and a for-profit can make a difference, allowing the organizations to create and carry out philanthropic initiatives that positively impact stakeholders on both sides.
While these collaborations have the potential to lead to a lot of good, the formation of one should always be done with due diligence. Below, 14 Forbes Nonprofit Council members each share one common mistake nonprofit leaders make when approaching the formation of corporate sponsorships.
Members of Forbes Nonprofit Council share common mistakes nonprofits make when collaborating with for-profit organizations.
Photos courtesy of the individual members.1. Not Doing Proper Research On Potential Partners
Before approaching a corporation with a partnership, ask questions. Nonprofits often forget to research the company to identify key stakeholders and demonstrate how they can add value to the business. A successful, profitable and sustainable company must create value for shareholders, employees, customers, suppliers and communities. Start by understanding their needs and values to greatly increase your chance of success. - Thomas Bognanno, CHC: Creating Healthier Communities
2. Forgetting Why A Partnership Is Being Formed
Many nonprofit leaders forget why they are forming a partnership with a corporation. It has to be a win-win situation for both parties, so listen to your partner's needs and why they are motivated to partner with you. Creating a partnership that’s mutually beneficial takes a long-term relationship instead of a one-off thing. - Sepideh Nasiri, Women Of MENA In Technology
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3. Focusing On Short-Term Needs
A mistake that nonprofit leaders often make when with corporate sponsorships is simply aiming to meet an immediate need. It’s critical that leaders look for ways to establish and build mutually beneficial partnerships that yield deep impact. - Courtney Smith, Detroit Phoenix Center
4. Using A One-Size-Fits-All Approach
Nonprofits often use a one-size-fits-all approach for marketing to the masses instead of directly targeting relationships. Partnerships should be specific and intentional to produce positive quantifiable synergy as a result of the sponsorship. This could result in major benefits like brand association and even add validation to your nonprofit. Invest in the approach to see results. - Howard Chi, SF SPCA
5. Focusing On The Potential Donation
Some nonprofits focus on the size of the potential donation instead of the size of the collective impact that they and their corporate partner can make. Have a deep dive discussion on what each party can do to fulfill the mission, not just what the corporation can do to help the organization fulfill the mission. - Kimberly Lewis, Goodwill Industries of East Texas, Inc.
6. Failing To Listen
One mistake is failing to listen. In the excitement of explaining an organization's mission, the impact of programming and how best to collaborate, leaders sometimes don't take the time to learn about the objectives of a potential corporate partner. The initial conversations need to focus on what the corporation is looking for and understand how the nonprofit can partner in an honest and positive way. - Dan Mantz, Robotics Education & Competition (REC) Foundation
7. Making Assumptions
Perhaps the biggest mistake is making any assumptions. Rather than approach a company with a slick prepared proposal, it might be more helpful to request an informational interview to see if and where your shared interests align. Proposals tend to beg for a yes or no response, and this approach can shut doors prematurely. On the other hand, an informal conversation will help build your network. - Gloria Horsley, Open to Hope
8. Forming An Unequal Partnership
Show up in this conversation as an equal partner. You have lots to offer, and it is a value that your corporate partner wants and needs. It also needs to be mutually beneficial. State your case clearly, letting them know what your initiative can add to their value proposition and how their participation enriches you. Go forward as long as you do your homework, know what resonates and remain true to your mission. - Magdalena Nowicka Mook, ICF (International Coaching Federation)
9. Not Recognizing The Value Of The Nonprofit Perspective
One mistake nonprofits make in approaching a corporate partnership begins with language. As nonprofit corporations, we bring as much to a partnership as a for-profit corporation does. From this equal space, negotiate with the for-profit corporation. There is infinite value a nonprofit corporation brings, so don't undervalue your nonprofit or your role as a leader. - Jesse Bethke Gomez, Metropolitan Center for Independent Living
10. Leaving Out The CEO
Nonprofits often create partnerships with the marketing or community engagement areas and leave the CEO entirely out of the equation. The corporate CEO should be actively engaged and highly visible throughout the partnership. Nothing speaks louder to employees than having the company leader embrace the cause. Make sure that’s negotiated up front so that expectations are set and met from the beginning. - Victoria Burkhart, The More Than Giving Company
11. Not Seeking Value Alignment
Start with your values as an organization and do not stray from them. As a youth climate organization, we have been approached by the fossil fuel industry to include a sizable sponsorship offer. Our values guided how to respectfully decline the partnership, holding true to the mission and values of the organization. - Jono Anzalone, The Climate Initiative
12. Leading With The Wrong Messaging
A fundamental mistake nonprofit leaders can make when pitching corporate partnerships is leading with messaging about why this is the "right thing to do.” Instead, distinguish yourself by promoting the significant value your nonprofit can bring to a corporate partner’s business through programs customized to address their core needs by capitalizing on your nonprofit's strengths. - Linda Goler Blount, Black Women’s Health Imperative
13. Failing How To Achieve A Win-Win
One mistake I've seen with nonprofits working with corporations is failing to understand how to achieve a win-win value proposition. The nonprofit must ensure that projects are in alignment with its mission while the corporation partner simultaneously ensures that they're building brand equity and/or building its customer base. Identifying projects that check both boxes is critical. - Devin Jopp, Association for Professionals in Infection Control & Epidemiology
14. Beginning With An Ask Already In Mind
The biggest mistake I see organizations make is entering into partnerships with the ask in mind. Doing that limits possibilities! When we shift our process to going into companies and asking them, with genuine curiosity, what they are doing and passionate about, we can unlock far more opportunities for both of us to advance our shared goals. This shift in how we begin to develop the relationship can be transformative. - Jennifer Thompson, National Association of Social Workers New Jersey/Delaware
