August 2011

I.G. Memo: Corporate Fundraising 101

Recently, Stuart Cox, the Education Coordinator at Londons Blue Elephant Theatre (www.blueelephanttheatre.co.uk) came to us with a predicament: the theatre was about to be visited by a potential corporate donor and they did not have much experience working with companies. At I.G. Advisors (I.G.), we know this quandary is a common one. Many small- and medium-sized charities may have a strong history of cultivating and stewarding individual, foundation, or government donors, but are new to corporate fundraising. With cuts in statutory funding leading charities to find new income streams, the corporate sector can seem like the golden goose but it can be just as elusive. A strong and strategic approach to fundraising from the private sector doesnt have to be expensive, but does take a unique approach.

So you have a meeting with a corporate prospect. What next? Do your homework. Even though you will ask them about their business and their philanthropic/community investment goals when you meet, be familiar with your prospects literature and their past/current activities before they walk through the door. Who did they support last year? Are their staff encouraged to volunteer? Joni OSullivan, Senior Manager of Communications & CSR for Lloyds Banking Group, puts it best: you can always tell who has a basic understanding of what we do. Its absolutely worth taking the time to research whats important to us. The meeting will be more productive for both sides. If you dont do your homework be prepared to pale in comparison beside other organisations that do. As Joni highlights, doing your homework will also allow you to better engage your prospect in a lively discussion. Remember corporates will always find organisations to fund. It is therefore important that you do not misjudge the value of chemistry and interaction. Ultimately, people fund people and therefore you want to be engaging and come prepared with ideas and discussion points. In addition, its essential that you do not regard your contact (regardless of seniority) as a walking cheque. We always recommend that you do not
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use the first meeting to solicit funds. Unless you are explicitly asked what they can support, treat the first meeting as an opportunity to get to know each other. Just like you do with your individual donors, invest time in getting to know your corporate prospects. What are their ambitions? What are their needs? Use the initial meeting to gather information and to show the prospect what you do, how you do it, the impact you have and what makes you different. Only after the relationship has matured over the course of pro-active cultivation and follow-up, should you solicit for funds. When youre ready to solicit, ensure that your ask reflects the relationship youve cultivated; your ask should never feel generic. By this stage, you should know what your prospect wants to fund (if in doubt, offer a menu), at what level (if in doubt, give a range), and what they are seeking in return. Your ask, whether its in person or written, should detail the impact their involvement would have on your organisation and beneficiaries. The work to be funded must have a clear fit with the funders objectives or criteria and must be commensurate with the charities own strategic and charitable objectives comments Lisa Suchet, Chief Executive of the Nationwide Foundation, this approach will help charities to come across to funders as being clear about what they want to do, strategic in their planning and therefore as a well-run organisation worth supporting. When at the cultivation stage, also think of the relationship as a partnership. They are funding you to deliver a needed service that will reflect positively on them and help them meet their goals or requirements. In addition to following Lisas advice, your ask should detail how you help your prospect meet their corporate objectives. The Old Vic Theatre, a past client of I.G.s, has in recent years enjoyed a high-level of success with corporate donors (including American Airlines and Barclays Capital). While theyve invested significant resources into the quality of their productions, community activities, and brand, theyve also invested in developing a vibrant approach to corporate fundraising. Rebecca Smith, the Old Vics Head of Corporate Partnerships, has this advice for organisations looking to start corporate fundraising: corporate fundraising is a long term game, whether you are a small charity or The Old Vic. Invest time developing an interesting corporate offer, but ensure you can be flexible. Every
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company will want to feel that their partnership is unique and tailored towards their own business objectives. It is also key to ensure all areas of your company, from press and marketing through to your education and community teams, are supporting your plans as you will require backing across the organisation to deliver all benefits. Keep cultivating your key contacts so when they are ready to support the arts you are top of their list. Remember, if at first you dont succeed try and try again. If you are securing 1 in 20 corporate asks you are in great shape! In summary:
1. Once a meeting has been set up, do your homework know

2. 3. 4.

5. 6.

what they fund, how they fund it and what their philanthropic objectives are; Be engaging during the first meeting and seek to develop an understanding of each others needs; Follow-up and cultivate the relationship in a strategic (and noninvasive) manner; Once the relationship has matured, and this will vary from prospect to prospect, then make a highly bespoke and targeted ask that clearly highlights the benefits to all parties; If you are awarded a grant, be grateful and acknowledge the donation in an appropriate fashion; and Continue the cultivation process even after they have funded you your ultimate goal is to develop a relationship that will yield dividends in the short-, medium-, and long-term.

Following I.G.'s recommendations, Stuart at Blue Elephant met with his corporate prospect in early August 2011 and not only managed to interest them in Blue Elephant's work and mission, but now he has a clear plan as to how he will manage the relationship going forward. More importantly, Stuart knows when and how he will make his ask. "Corporate fundraising is a whole new world for me," says Stuart, "but I do now have more confidence, am much more proactive and Im really enjoying talking about our work to new people. It reminds me how proud I am of what we do at the Blue Elephant Theatre."

To learn more about corporate fundraising, I.G. Advisors, our services, or approach, please contact us at info@ig-advisors.com or visit www.ig-advisors.com. You can also follow us on Twitter @IG_Advisors.
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