Many people view philanthropy as falling into two distinct categories.
The first such group is comprised of multi-billion dollar bodies, based in the main on the legacies of their highly-successful founders and creators, such as Andrew Carnegie, John Paul Getty, and Bill and Melinda Gates.
“The second group is that of individual donors. People who, for a variety of reasons and causes, embark on philanthropic initiatives such as fund-raising, sponsored charitable events, or giving of their time and skills to help others.
But there’s no escaping reality : for many companies, times are tough right now, really tough. With plummeting revenues, massive corporate downsizing, the stock market nose-diving, and real estate prices in freefall across the globe, both companies and individuals are paying ever-closer attention to their bottom-line profits and expenditure.
Sadly, one of the first areas to which investments are cut is in the charitable and philanthropic sector. But, like their corporate colleagues, the need for charitable donations increases in a stormy economic climate, as the seismic negative economic ripples coming from the developed world strike devastating blows to the fragile economic structures of the developing nations.
Which begs the question: how can a responsible company (or individual, for that matter) strike a balance between the pressing imperative of cutting costs, whilst at the same time continuing to donate time, effort and skills to their charitable ventures? Are such companies fighting a losing battle to maintain their charity funding initiatives in the face of mass redundancies and stockholder protests?
Many seasoned observers believe this to be the case. But in the last few years, a third group of philanthropists has emerged, one with the potential (if correctly managed) to match the contributions of the other two groups combined. This new and vibrant philanthropic form is known as Strategic philanthropy.
Strategic philanthropy. (also known as cause-related marketing or community partnering)
combines a corporation’s marketing goals with their desire to benefit the local and wider community as a whole.
The benefits of this symbiotic company-community partnership are numerous:
1 )A greater understanding of the economic and social impact of the company on the local community.
2) The opportunity for the local population to work for and with the company, advancing the goals and projects of all through the pooling of resources and human capital.
3) Positive sponsorship and branding opportunities of sports teams and local events by the company, acting as a partner in the local community.
4) The creation of a ‘company foundation and scholarship program’, whereby young people in the locality get the chance to take up work placements in the Summer vacation, in positions relevant to their skills and career aspirations.
5) The allocation of grants for local civic and infrastructure projects, both financially and in terms of the company providing skilled volunteers to kick-start such projects and guide them to overall success.
It can even be argued that for the 21st-Century corporation, Strategic philanthropy is no longer an optional extra, it’s an absolute and compelling necessity. Given the bleak economic outlook, and following several notorious cases of corruption in business, the public and media seeking of scapegoats in the business community has reached an all-time high.
It’s therefore essential that Strategic philanthropy becomes a key part of the modern-day corporate structure. The benefits of such an approach for all concerned are incalculable…
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