There are many strategic planning methods but in all methods the leadership has to make 4 Decisions
There are many strategic planning methods but in all methods the leadership has to make 4 Decisions
What happens when you work hard to lead your nonprofit and don't see results? Simon Sinek has five rules to help.
NonProfits rarely see the need to find a business partner. At best, they find a favorite auditor, attorney or supply vendor and essentially develop no-bid contracts with their favorites. Stuart Mendel and Jeffrey Brudney found that nonprofit and business partnerships were only 10% of partnerships.
Partnerships mean that both partners get something that they want from the relationship. Nonprofit CEOs are nervous about relationships that might make a business – more profitable. Actually, every time that you pay your auditor, I assume that they get richer! So there is nothing illegal or unethical about partnership with business.
What are bad partnerships with Business?
Brand Risk – The biggest risk is Brand risk. If you choose to partner with businesses that don’t match your values, mission, or values of your clients, you can seriously damage your brand. Partnerships with business should hire a coach to help you review partner proposals with your leadership team, board, and stakeholders before you proceed. For example, the company in New York that has done audits for Mr. Trump also pushes aggressively in the nonprofit space locally. Would it affect your nonprofit brand if you chose the same auditor? What questions would you raise before you made the decision? Your coach can help.
Kentucky Fried Chicken partnered to give money for breast cancer cure. They printed a month of pink buckets for chicken. Media quickly seized on the links between calories, obesity and breast cancer. There was nothing unethical with the business relationship but the nonprofit failed to consider key implications of their brand. Proceed slowly and use a coach!
Process Risk – A second risk is process risk. The processes and corporate cultures of all companies are far different. When any two groups develop a partnership, there needs to be a written charter that the coach helps you to carefully spell out details
Both Brand Risk and Process Risk can be managed. Leaders lean into the danger, use a coach, and do risk management! You can partner with business.
What’s a good reason to partner with Business? Mendel and Brudner list four reasons and I add two more!
Conclusion: Partnerships are critical in the growth of nonprofits and often welcomed by business. You will be treated as a co-equal partner by the right Business. Remember: