Following a trip to Argentina, TOMS founder Blake Mycoskie realized that a large number of kids go without proper shoes. He went on to develop a for-profit business supporting a philanthropic cause and coined the term “One for One” whereby a pair of shoes is donated for every pair bought. Since then, the company has experienced tremendous success and expanded their efforts into additional products and causes. By giving and demonstrating to consumers the real impact they are making, they were able to expand their bottom line and make a difference on complex social issues.

The changing attitude of for-profit corporations and growth of Social Entrepreneurship sheds new light on the value of partnering with not-for-profit organizations. As described by Harvard Business School Professor Michael Porter, “businesses must reconnect company success with social progress. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success.” Incorporating a social mission into a company’s overall strategy proves valuable in more ways than one and reflects directly on the bottom line.

Conversely, it is no longer sufficient for not-for-profit organizations to simply collect donations and issue receipts; donors want to see the impact of their donations and know they are making a meaningful difference in the projects they choose to support. This attitude shift opens the possibility for deeper and more impacting partnerships between both sides.

So how can your organization attract and develop these valuable partnerships?

There are 3 key ways we believe an organization can attract and develop such partnerships:

1.      Clear mission & vision

An organization must be crystal clear on the purpose of their organization, where they are going and how they plan to achieve this. Once organizations have a thorough mission and vision, along with a proven track record of working towards it, they may demonstrate to potential partners the way in which their goals align and how partnership would benefit both.  By targeting partners based on shared values, organizations gain a true supporter who believes in their mission and will champion it through their business efforts.

2.   “I’m a good person” feeling

It is human nature to feel good when helping others or doing “the right thing.”  As with TOMs shoes, both consumers and the company feel good about the transaction knowing the tangible difference it is making. Nonprofits should highlight to potential partners the direct impact their cooperation would have on beneficiaries and how the forecasted impact aligns with the company’s values.  For example, an organization such as Clothing Services for Seniors, which provides free clothing to seniors in need, may reach out to a clothing manufacturer in request for partnership. The company can use the stories of beneficiaries in marketing efforts to both improve public image and drive sales.

3. Solid Financials

Donors are also investors who want to see their “investment” not only make an impact but also be handled in an efficient and responsible manner. Therefore, organizations must prove that they are capable of managing and leveraging donations to result in partial or full self-sustainability down the road. A recent graduate of YEDI’s program – the JRCC Furniture Depot  - was able to secure a partnership and a $750,000 donation by using this principle. The success of the partnership was in large part due to the organization’s ability to prove self-sustainability within 3 years. The Depot’s unique model provides furniture to those in need at no charge and those wanting to donate furniture may request a pick-up service provided by professional movers at below market prices along with an in-kind donation receipt. The organization’s trucking social enterprise arm provides the necessary revenues to support the overall operation, ensuring the Depot will be sustainable without reliance on funders and donors. Such a solution demonstrates a clear plan of action to potential partners wherein they can feel secure about the impact and future outcomes of their donations.

In summary, not-for-profit organizations must take meaningful steps to demonstrate credibility and a mutually beneficial solution in order to attract and develop long-lasting partnerships in today’s new business landscape.

Maria Konikov is the project director at The York Entrepreneurship Development Institute (YEDI). YEDI is a free start-up incubator and Canada’s first incubation program exclusively for existing not-for-profit organizations. 

YEDI is focused on equipping innovators with the entrepreneurial know-how, resources and networks necessary for project success. Applications for the Fall cohort are accepted by August 16. To learn more, visit: www.yedinstitute.org/apply