The thorny question of return on investment is an important one to address for not-for-profits.
Approaching corporate organisations for support is hard enough in the current climate, but when a not-for-profit group secures a relationship with a business, how does it prove the hard-won dollars are worth the investment?
The thorny question of return on investment is an important one to address. Some of Western Australia’s leading NFPs are happy to tackle the issues head on.
It’s all about trust
For Vinnies WA corporate engagement manager Angela Thisainayagan, being asked about ROI is something she encourages from organisations the NFP works with.
“I welcome the question of ROI,” Ms Thisainayagan said.
“It’s a very reasonable question if I’m asking an organisation to sponsor a Vinnies’ event or program.
“This is a relationship that is based on a corporate’s financial investment, and they would naturally be seeking, in exchange, a tailored suite of benefits.
“So, wanting to understand how much those benefits are worth is only natural.
“At Vinnies we understand the value of the benefits we offer corporates in return for their investment, and we are happy to share the value of different benefits such as the value of accessing specific customers, or the value of receiving signage at a high-profile event.”
Offering this level of transparency facilitated a high level of confidence for a corporate to invest in your charity, Ms Thisainayagan said.
Once the corporate partner is reassured that their investment is delivering on multiple fronts, the relationship between the two entities can develop to become a long-lasting one.
“In my experience, three areas are critical for a long-lasting relationship: brand alignment and synergy of objectives; mutual respect and trust; and open and regular communications,” she said.
Invest time in relationships
At Foundation Housing, chief executive Chris Smith makes it a priority to ensure the team has done the groundwork around ROI before approaching potential partners.
“We put in the work to understand if the project is suitable and financially sustainable before we move forward,” Mr Smith said.
To ensure a long-lasting relationship between Foundation Housing and potential corporate entities, there are a few things that must be in place, according to Mr Smith.
“Corporations that are mission-focused and understand the tenure required to achieve certain returns,” he said.
“An ideal long-lasting relationship grows from shared values and commitment to the journey from both parties.”
This approach has resulted in successful retained relationships, including with property developer Hesperia.
“We have had a range of successful relationships with corporate entities over the years,” Mr Smith said.
“Most recently, we have partnered with property developer Hesperia on a government development in Highgate which will see more social housing outcomes for the people of WA.
“These types of collaborations are critical for the community housing sector to respond to the need for housing at scale and in a commercially viable manner.”
Different strokes
A return on investment can mean different things for different people, according to Foodbank WA chief executive Kate O’Hara.
“For some, it may mean more prospects, sales or revenue, while for others it means more media coverage and branding and image,” Ms O’Hara said.
“Once you understand what a successful ROI means to an organisation specifically, you can begin to address the question meaningfully.”
Foodbank WA works to encourage and nurture long-lasting relationships with its corporate supporters, including Bankwest and the Hawaiian Group.
“Bankwest is one of our longest-running corporate relationships,” Ms O’Hara said.
“In addition to financial support, Bankwest commit to helping our volunteering effort in packing hampers, bundles and preparing ready-to-eat meals.
“Bankwest really do give real meaning to how valuable and essential the volunteering network is to the infrastructure of our business.”
Bankwest offers employees the opportunity to take time off to volunteer with Foodbank WA.
This helps ensure that not only is the NFP supported, but the bank’s teams understand the influence their company has within the community – furthering their overall satisfaction with work.
Hawaiian is another long-term supporter of Foodbank WA.
“In an effort to raise essential funds and food donations, Hawaiian play a critical role in exposing Foodbank WA to their valuable network within the community,” Ms O’Hara said.
“Connecting so many Western Australian families and individuals with our cause across their shopping centres helps drive the awareness of how essential support is for food relief in WA.
“This effort, combined with longevity of support, helps deepen and really embed a valuable offering for supporting the most vulnerable in our community.”
Engaging staff is key
Another approach to encourage a relationship that lasts, is to appeal directly to employees of a corporate organisation, who may act as advocates on behalf of a NFP and advance its interests to the business they work for.
RSPCA WA is particularly adept at offering ROI for sponsors focused on employee engagement via the NFP’s community, education and advocacy work.
“We can deliver high ROI for sponsors focused on employee engagement and creating a cohesive team spirit,” RSPCA WA philanthropy and partnership manager Gosia Paton said.
“This includes field days to our Animal Care Centre, fundraising opportunities and the chance to get hands-on helping at-risk animals and community members.
“We find that partners who engage with us through all levels, from C-suite to board and regular employees, get the most out of their sponsorship.”
Ms Paton said a one-size-fits-all approach to corporate partnerships was a thing of the past.
“The RSPCA aims to co-design partnerships based on budgets, shared priorities and values,” she said.
“Last year, we established a wonderful national partnership with Royal Canin, based on a shared passion for the health and wellbeing of animals.
“Royal Canin supports the health of tens of thousands of shelter cats and dogs by providing access to the highest quality tailored feed at all RSPCA locations across Australia.
“As the partnership evolved, we identified a mutual desire to improve our impact on pets, the planet, and people by making our activities more sustainable.
“This led to the RSPCA’s adoption of Royal Canin’s pet food packaging recycling program.
“We now have collection points at shelters, vet clinics and retail shops across Australia, and the initiative has been embraced by pet owners and staff alike.”
A successful partnership is based on mutual understanding, among other things.
“We put our cause at the forefront and our partners understand that alongside their benefits, they are helping deliver incredibly important work for animal welfare,” Ms Paton said.
