The most misunderstood nonprofit income source is corporate funding. Why? Many nonprofit leaders only vaguely understand the reasons why businesses provide nonprofits money. Yet, most nonprofit leaders would like this income. To obtain it, one must understand the reasons why such partnerships form. Last month’s Added Value article listed five reasons:
· Business Opportunities. Businesses seek to increase their customer base and goodwill among current customers. Nonprofits that reach their customers or potential customers provide an opportunity.
· Employee Support. By maintaining loyal employees, businesses reduce recruitment expenses and improve employee morale. Supporting nonprofits demonstrates that the company has a heart.
· Repayment. The funds represent a concrete expression of business’ gratitude for the community support that made success possible.
· The Cause. A business leader has a passion for your mission. Business income provides him or her with a vehicle to act on their passion.
· Strategic. The business recognizes that working with a nonprofit is a chance to meet these or similar objectives with one check.
Are there additional reasons you would add to this list? Has your nonprofit been funded by a business for a different reason? Are you a business that funds a nonprofit? If so, why?
Read the article, How to Succeed In Business, What Your Leaders Need to Know About Corporate Funding here.