What Business Leaders Expect From Not-For-Profit Organizations

Jack Shand, CMC, CAE

© Leader Quest and Jack F. Shand

In a joint research project, Solution Studio Inc. and Leader Quest interviewed the chief executives of major Canadian businesses to learn what they expect, and value, from their company’s involvement with and support for not-for-profit organizations. The study included interviews with the Canadian CEOs of prominent corporations including Microsoft, American Express, Canada Post, Royal LePage, Wal-Mart, and Delta Hotels.

Among the key findings:

  • Here is a reality check to understand how your organization needs to stand out from the crowd to attract the support of corporate Canada: one CEO reported that their company receives 130 requests for support every month from charities.

  • There is no one test or single criterion that determines which organizations a company will support, but virtually all companies will look to an alignment of mission and principles between what the NFP does and the company’s focus; it is also important that the mission and message of the NFP be clear.

  • Charity support is predicated upon alignment with company’s values and interests (e.g., real estate and homeless; needs of children); how much they are spending on the cause vs. administration.

  • Most companies encourage employees to be active in community groups, associations and charities.

  • Companies tend to be drawn more to broader umbrella associations vs. single sector/single issue groups.

  • The value associations deliver for companies is in representation/advocacy and education of the company’s employees (whether through formal training or through involvement as a volunteer).

There are some important lessons for leaders in the NFP sector from this research:

  • Leadership matters. In the view of corporate CEOs, the chief staff executive of the NFP makes the organization great or average (or worse). Boards need to hire the very best staff they can find. The NFP staff must also demonstrate passion for the organization’s work and be accountable for results.

  • Have a clear mission and a clear strategic focus as an organization with resources aligned to the mission.

  • If your association or charity is not run like a business with business discipline and principles (e.g., measurable outcomes and a performance-based culture), don’t expect to hold the interest of the business community.

  • The power of your brand is important (think of groups such as the United Way).

  • The “birds of a feather” rule: Leaders in business want to be in the room with their equals. You won’t attract a corporate giant unless other giants are actively engaged. And you won’t hold their support if you don’t deliver meaningful results and keep the internal discussion at a high level (too much bureaucracy will guarantee a quick exit).

Additional participants included senior executives from RBC Foundation, Novartis, Staples-Business Depot, Johnson & Johnson, among others.

Paulette Vinette, CAE, president of Solution Studio Inc., and Jack Shand, CMC, CAE, president of Leader Quest Inc., are available to make a two-hour presentation to the boards, staff, and members of not-for-profit organizations with further lessons on how to better connect with the volunteers and donors in the business community who support not-for-profit organizations. For more information, please call (877) 929-4473.