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The ABC’s of Corporate Philanthropy by Elaine Fogel
Whether you’re a business practicing corporate social responsibility, or a nonprofit organization receiving corporate gifts or support, corporate philanthropy comes in many shapes and sizes. Here are the definitions you need to know.
Sponsors: companies that make an investment in a nonprofit in exchange for marketing and promotional benefits Cause Marketers: companies that promote sales tied to donations Grantors: companies that make a philanthropic investment in a nonprofit without the expectation of marketing and promotional benefits Strategic Philanthropy: strategy in which companies make philanthropic investments and promote a marketing affiliation with a nonprofit
Philanthropy has a variety of names in the corporate sector:
· corporate social responsibility · corporate citizenship · corporate philanthropy · corporate giving · corporate community involvement · community relations · community affairs · community development · corporate responsibility · global citizenship · corporate societal marketing
Here’s the ultimate definition as provided in Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause by authors and marketing gurus Philip Kotler and Nancy Lee.
“Corporate social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources.”
Corporate social initiatives are major activities undertaken by a corporation to support social causes and to fulfill a commitment to corporate social responsibility. Whichever way we slice it, 40 percent of the 3500 respondents in the GolinHarris 2005 Corporate Citizenship Index say that good corporate citizenship makes them more willing to do business with a company.
Corporate philanthropy is a win-win situation. The nonprofits who understand its value and know how to steward and promote corporate partners or reciprocate benefits to their business partners, are the biggest winners.
To find out how your business or nonprofit can get involved with corporate philanthropy, call us.
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