A corporate partnership is a mutually beneficial relationship between a for-profit company and a not-for-profit organisation. This relationship can be an ongoing association, however, is typically focused on an specific event. Below, we break down what this partnership entails, and how it may be beneficial for each party.
Definition of corporate partnership
A corporate partnership works together to pursue a common goal. This goal is often based on the values of the two organisations, and tends to involve a form of promotion. When the two companies work together, each party must benefit. It is not a simple donation or sponsorship arrangement.
How would not-for-profits benefit?
Not-for-profits generally struggle with attaining the funds necessary to develop their events. The for-profit company has access to these funds, and therefore, are able to fund the not-for-profit’s expenses. For example, Westpac worked with the City 2 Surf for 2019. The City 2 Surf alone as an organisation is unlikely to have the funds for the advertising. Thus, Westpac is able to cover these expenses.
Furthermore, the not-for-profits benefit through the increased visibility they are able to receive, and consequently, the increased volunteer support. The corporate partnership allows the not-for-profits to work together to develop their event to its full potential.
How would for-profits benefit?
There are numerous benefits that a business may receive from working with a not-for-profit. Predominantly, the benefits revolve around the increased marketing for the company and the public image associate with it. It increases the public’s knowledge of the company, and makes them appear in a positive light.
Additionally, the companies that work with a not-for-profit tend to experience higher employee retention and satisfaction. This may lead to long-term savings on investments in employees.
Are there any disadvantages?
Entering a corporate partnership may leave the not-for-profit with less ground to stand on, due to the significant financial support from the for-profit company. However, this is dependent on the agreement in force. It is important for not-for-profits to create this partnership in a way that maintains their power. This ensures that they are not forced to alter their event for the for-profit company’s ideas, that may be different from their own. The relationship needs to be maintained as mutually beneficial, to ensure maximum efficiency.
Corporate partnerships can be highly advantageous to each party, if managed correctly. Doing so, will allow each company to achieve their goals and increase awareness of their values in the eyes of the public. For further enquiries on these partnership, a corporate lawyer may be of assistance.