Many nonprofits see for-profit businesses and their staff primarily as potential donors; however, strategic partnerships between nonprofits and businesses can be very beneficial. Nonprofits should consider collaborative business alliances as part of any fundraising game plan, in particular when preparing for GivingTuesday and the giving season.

(If you don’t already have a structured fundraising plan, now's the time to set one up that gets you from today to GiveTuesday... and then through the end of the year. Better yet, use the free outline we’ve pulled together to guide you every step of the way.)

Importantly, strategic business partnerships are most effective when they span more than just one day or a single fundraising campaign. Over the long term, they can evolve into mutually advantageous relationships that sustainably address all partners’ business imperatives and a community's social needs.

This article looks first at the value of strategic business partnerships between nonprofits and businesses and then at how to go about building them.

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Constructive collaboration

For nonprofits, forging and leveraging business alliances can broaden opportunities and audiences, increase community impact, foster a spirit of innovation and, critically, help diversify funding sources. Of course, there’s also a boost to the business partner.

Expanded exposure and reach 

Business collaboration expands the reach and visibility of both partners. For nonprofits, a commercial enterprise's customers may represent new audiences, geographic areas or demographics. Even better, seeing a company support a nonprofit mission taps into the psychological concept of “social proof.”

Energized community impact

A business partner’s personnel expertise and other strengths can open doors to new human, material and financial resources for nonprofits, such as skilled volunteers and pro bono services. This can have a profound positive effect on program operations and community engagement.

Innovative planning and execution

Collaboration often leads to innovation. Shared inspiration, skills, technology and physical spaces can generate new ideas around co-managed campaigns and co-hosted events. These, in turn, attract media attention, elevate public profiles and engage new supporters. Partnering with a business can help with social media exposure, too. 

Diversified funding

At times of economic instability, nonprofits must pursue funding from multiple sources. Successful nonprofit-business partnerships exploit novel pathways to new donors, both individual and institutional, including donation-matching.

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Shared goals, clear roles, mutual benefits

The strongest partnerships are anchored in shared goals. When nonprofits and for-profits find synchronicity around common cause, the whole is far greater than the sum of its parts. 

That being said, establishing and formalizing what each organization brings to the twain ensures smooth operations, mutual accountability and maximum impact. Very often, nonprofits bring mission expertise, community trust and direct access to key constituencies. Businesses contribute funding, professional services, networks and management experience. 

The advantages to nonprofits are the focus of this article, but nonprofits do well to keep in mind what businesses stand to gain. Reinforced community ties and the consequent good will are certainly key benefits. That said, businesses that align with nonprofits signal their corporate social responsibility, sometimes called environmental, social and governance (ESG) principles, which some consumers and employees look out for. 

Partnerships can also boost business employee morale through volunteer opportunities. And, just as it does for nonprofits, collaboration helps businesses expand business networks, yielding measurable returns in brand loyalty and stakeholder trust.

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How to build a business partnership

Reimagine what collaboration means

Hint: It means more than just financial sponsorship. Look for win-win opportunities that meet goals around brand visibility, market access, social engagement and employee development:

• matching donations - inspires employees to give
• in-kind donations - event catering, technology services, consulting
• volunteers with particular skills - marketing, data analysis or graphic design
• co-hosted events - to build mission and brand awareness
• workforce development - internships, mentorships and trainings. 

Identify partner candidates

Network through existing relationships – board member companies, reliable suppliers, past donors and committed volunteers.

• Focus on businesses with aligned mission, audience and values. 
• Look for companies with proven community engagement or, if particular services are critical, businesses that can solve operational challenges (e.g., IT support, printing, catering). 
• Make a personalized approach that highlights shared goals and past partnerships.

Trial the partnership

Start small with a relatively low-risk project such as a co-hosted event with a small group of people, a volunteer day or a cause-marketing campaign. This builds trust and refines collaboration before scaling.

• Set realistic expectations in terms of goals and timing. 
• Assign project managers for both partners.
• Share project management tools and establish a comfortable communication rhythm.

Celebrate success and begin to build

Track the partnership outcomes – cost savings, volunteer hours and feedback – and prepare for next steps:

• Highlight partnership wins, in private and in public: internal/external newsletters, presentations and co-branded content for blogs and as part of a social media strategy.
• Develop a plan for incrementally increased engagement.
• Apply the learnings from this partnership to new partnerships.

Partnerships matter

Strategic business partnerships between nonprofits and businesses have the potential to multiply fundraising impact and create lasting momentum for change, especially when formed around shared values and complementary strengths. GivingTuesday and the giving season are perfect moments to trial or deepen these collaborative efforts for lasting community benefit.