Today, we wrap up our series on Funding Your Faith. In previous editions, we have discussed government funding and foundation funding. Our final focus is on corporate funding.
Corporate funding can come from two sources within the business. Many corporations provide funds for sponsorships of events and nonprofit activities through their marketing department. To successfully access these funds, nonprofits must think like a business. The purpose of a marketing department is to increase exposure for the business. Thus, nonprofits need to think through how they can provide exposure for the businesses that provide sponsorships. In other words,
- How many people will they reach with the sponsorship?
- What can you give to corporation?
- Are the individuals that you will reach the same individuals that the corporation wants to reach?
Marketing dollars are not philanthropic dollars. They are monies for a very specific purpose. When seeking marketing dollars, nonprofits need to keep these facts in mind.
The second source of funds from corporations comes in the form of corporate foundations. Corporations often set up foundations to give back to the communities where they are located and where their employees live and work. While many corporate foundations exist, nonprofits need to remember that corporations give financial grants for one of two reasons….their community image or to increase their bottom line.
Information about corporate funding is sometimes challenging to find. It is often hidden on the corporate website under categories such as, “Sustainability Report,” or “Citizenship Report.”
While corporate funding can be a great source of local funds for nonprofits, I also want to share some words of caution. All nonprofits, especially those that are faith-based, need to think about how aligning with a corporation could impact your mission statement. There are many instances in today’s media of nonprofits that have been negatively impacted by a relationship with a corporation that makes a poor decision.
Corporate funding is an option for organizations serving in their local community. As with all funding, nonprofits need to think about what a relationship with the corporation would mean. Use the newspaper test, would you want your relationship with this corporation on the front page of the local newspaper?
Need funding? Contact us today. Our foundation research special will last for just three more weeks.