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Institute of FundraisingCorporate Fundraising Special Interest Group
6 December 2011
Paul GillespieGood Values
Peter BullHSBC in the Community
Today’s presentation:
1. Corporate giving – the climate and key trends
2. HSBC in the Community - an insider’s perspective
3. Five top tips – how to be ‘CR friendly’
Corporate givingClimate and trends
About Good Values
A leading Corporate Responsibility agency working with companies to:
•Develop and advise on CR and sustainability strategies
•Create and deliver award-winning Community Investment (CI) programmes
•Manage NGO selection process for flagship CI programmes
•Deliver social impacts and a bottom line business return
Using our understanding of the corporate world to help charities:
•Maximise return on investment from fundraising strategies
•Deliver a step change in high value fundraising e.g. Corporate, Major Donors, Development Boards
•Develop a compelling brand and case for support
Key market insights: P.E.S.T. influencers
P Social
Growth in NGO & consumer power
-better co-ordinated & global
reach via web.
Technology
Media age. Ease and speed of global communication
reach/influence all
Questions asked about role of business in society with increasing scrutiny & pressure from myriad of stakeholders (NGO, consumers, government)
Political
“Fall of government, rise of
corporations”. Diverting pressure onto companies.
Economic
Gained greater power & influence via globalisation &
technology revolution.
CSR is now an inescapable priority for business leaders
Challenge is HOW to respond and proactively achieve long term COMPETITIVE ADVANTAGE
• Public trust for companies at an all-time low (41% in the UK and just 16% for financial services)
• Transparency, trust, community and employee welfare is more important to consumers than ever before
• 75% of Chief Executives report that corporate social responsibility is an essential issue to their business (BiTC, 2010)
• 90% of employees whose co’s have a CI programme feel proud of their co’s values v’s 56% of those co’s who don’t
• Companies that consistently manage & measure their corporate responsibility outperformed their FTSE 350 peers in seven out of the last eight years (BiTC, 2010)
What this means for companies...
Corporate Social Responsibility continues to remain a core
issue at boardroom level even in the current economic climate
• Compliance to Corporate Social Leadership to differentiate
• Brands/companies need to win hearts and minds
• Breakthrough CR clutter - creativity, innovation, investment needed
• More Alliances
: confrontation to collaboration
: industry partners –tackling social issues
: corporate/NGO partnerships
• Increased Return on Social Investment (ROSI) expectations from CR and CI programmes
• More £1m+ long term strategic ‘flagship’ CI programmes being created that work nationally and locally
What this means for companies...
9
What this means for you...
Corporate giving trends (2010):
• The top 600 companies in the UK ‘invested’ £800 million in the community, including over £500 million cash
• Cash invested stayed on par with previous year with significant increases in TIK/GIK (corporate volunteering increased 150% between 2008-2010)
• Usual suspects continue to dominate all areas of giving and CSR market (top 25 contribute in excess of £300m = 32% of overall market)
• Between 60-70 companies ‘give’ consistently in excess of £1m pa
• Top giving sectors (by total contribution) continue to be: • Banks and financial services • Supermarkets • Utilities • Pharmaceuticals
Corporate fundraising (now & the future):
• Still viewed as ‘real’ growth area and increasing resources allocated
• Six charities have sustained in excess of £5m corporate income across the past five years (strong brands, highly emotive causes)
• Five out of the top six involve ‘leadership’ – e.g. Corporate Development Group to deliver sustainable income
• Increasingly compelling commercial ‘cases for support’ that deliver greater measurable value (social impact, business return)
• For smaller charities – half of Fundraising Directors report a reduction in corporate income, whilst a third report an increase (Good Values survey 2011)
10
What this means for you...
The most successful charities understand market changes and respond appropriately with a sound
strategy
What this means for you...
Successful NGO’s are demonstrating to companies that:
Their ‘cause heartland’ has a strong strategic business fit
They can offer ‘real’ differentiation and standout
They provide marketing & PR support across all channels including social media
They can measure the long term impact of their programmes and create a ‘legacy’
They have a track record of professional business partnerships – with outstanding stewardship
11
HSBC in the CommunityAn insider’s perspective
• Counter public negative opinion and reinforce company values
• Influence the public and key opinion formers
• Positively contribute to brand image, marketing & communications
• Business benefits – employee engagement and skills development
• Make our employees proud
Why we do community programmes
What we were looking for in a flagship partner
• Well-known charity? Or one where corporate can really make a difference
• Operations that mirror company’s geographical coverage
• Programme more important than the partner’s name?
• Focus of cause area must fit corporate aspirations
It’s all in the name... or is it?
• Not too big... not too small... but just right
• Big enough investment to make a real difference
• But not so big that the charity is over dependent
The Goldilocks theory
Show me the numbers!
• Easily communicated outputs and impacts
• Breadth (large numbers) and depth (best in class models for a multiplier effect)
It’s all about people
• Contacts that exist before the deal
• The ‘pitch’ team
• Who will be working together?
• Keen, knowledgeable, passionate, professional, personable, responsive
• How can the work outlive the partnership?
• Leverage – and legacy
• How can the partnership itself enhance the NGO’s longer-term future?
All good things come to an end
The process
Return on Social Investment (ROSI) Model TM
© 2010 good values
Identifying the BIG cause idea
Fits with brand, organisation and objectives
Societal impact - meets a clear societal need
Relevant and emotive to
stakeholders
BIG CAUS
EIDEA
Scoring matrix
Good Values robust selection criteria included:
A total of 39 categories
Five mandatory elements
Strategic direction, scale, experience, reputation
Programme assessment
Account management/ability to work with
Five top tips for being ‘CR friendly’
1. Think ‘stand out’
•The 26,000 factor - truly differentiate yourself
•Be brave and innovative
•Utilise all media channels including social media
2. Put yourself in the company’s shoes
•Strategic and values relevance
•Think win-win
•Sector exclusivity
•How will this deliver ROSI?
3. Ensure your proposition is truly compelling
•Make the corporate feel ‘special’
•How will a CI investment change society?
•New vs. ongoing work - positioning
4. Get the chemistry right
•Show you will be a great partner
•First impressions count, but play for long term
•People give to people
5. Pay attention to the basics...
•Win over the agency as well as the company
•Answer the brief
•Deliver on time
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