Institute of Fundraising
Corporate Fundraising
Special Interest Group
6 December 2011
Paul Gillespie
Good Values
Peter Bull
HSBC in the Community
Today’s presentation:
1. Corporate giving – the climate and key trends
2. HSBC in the Community - an insider’s perspective
3. Five top tips – how to be ‘CR friendly’
Corporate giving
Climate and trends
About Good Values
A leading Corporate Responsibility agency working with companies to:
•Develop and advise on CR and sustainability strategies
•Create and deliver award-winning Community Investment (CI) programmes
•Manage NGO selection process for flagship CI programmes
•Deliver social impacts and a bottom line business return
Using our understanding of the corporate world to help charities:
•Maximise return on investment from fundraising strategies
•Deliver a step change in high value fundraising e.g. Corporate, Major
Donors, Development Boards
•Develop a compelling brand and case for support
Key market insights: P.E.S.T. influencers
Political
Economic
“Fall of government,
rise of corporations”.
Diverting pressure
onto companies.
Gained greater power
& influence via
globalisation &
technology revolution.
Social
Technology
Growth in NGO &
consumer power
-better co-ordinated &
global reach via web.
Media age. Ease and
speed of global
communication
P
 reach/influence all
Questions asked about role of business in society with increasing scrutiny & pressure from myriad of
stakeholders (NGO, consumers, government)
CSR is now an inescapable priority for business leaders
Challenge is HOW to respond and proactively achieve long term COMPETITIVE ADVANTAGE
What this means for companies...
• Public trust for companies at an all-time low (41% in the UK and just
16% for financial services)
• Transparency, trust, community and employee welfare is more
important to consumers than ever before
• 75% of Chief Executives report that corporate social responsibility is an
essential issue to their business (BiTC, 2010)
• 90% of employees whose co’s have a CI programme feel proud of their
co’s values v’s 56% of those co’s who don’t
• Companies that consistently manage & measure their corporate
responsibility outperformed their FTSE 350 peers in seven out of the
last eight years (BiTC, 2010)
Corporate Social Responsibility continues to remain a core
issue at boardroom level even in the current economic climate
What this means for companies...
• Compliance to Corporate Social Leadership to differentiate
• Brands/companies need to win hearts and minds
• Breakthrough CR clutter - creativity, innovation, investment needed
• More Alliances
: confrontation to collaboration
: industry partners –tackling social issues
: corporate/NGO partnerships
• Increased Return on Social Investment (ROSI) expectations from CR and
CI programmes
• More £1m+ long term strategic ‘flagship’ CI programmes being created
that work nationally and locally
What this means for you...
Corporate giving trends (2010):
• The top 600 companies in the UK ‘invested’ £800 million in the
community, including over £500 million cash
• Cash invested stayed on par with previous year with significant
increases in TIK/GIK (corporate volunteering increased 150% between
2008-2010)
• Usual suspects continue to dominate all areas of giving and CSR
market (top 25 contribute in excess of £300m = 32% of overall
market)
• Between 60-70 companies ‘give’ consistently in excess of £1m pa
• Top giving sectors (by total contribution) continue to be:
•
•
•
•
Banks and financial services
Supermarkets
Utilities
Pharmaceuticals
9
What this means for you...
Corporate fundraising (now & the future):
• Still viewed as ‘real’ growth area and increasing resources allocated
• Six charities have sustained in excess of £5m corporate income across
the past five years (strong brands, highly emotive causes)
• Five out of the top six involve ‘leadership’ – e.g. Corporate
Development Group to deliver sustainable income
• Increasingly compelling commercial ‘cases for support’ that deliver
greater measurable value (social impact, business return)
• For smaller charities – half of Fundraising Directors report a
reduction in corporate income, whilst a third report an increase (Good
Values survey 2011)
The most successful charities understand market changes and
respond appropriately with a sound strategy
10
What this means for you...
Successful NGO’s are demonstrating to companies that:
 Their ‘cause heartland’ has a strong strategic business fit
 They can offer ‘real’ differentiation and standout
 They provide marketing & PR support across all channels including
social media
 They can measure the long term impact of their programmes and
create a ‘legacy’
 They have a track record of professional business partnerships –
with outstanding stewardship
11
HSBC in the Community
An insider’s perspective
Why we do community programmes
• Counter public negative opinion and
reinforce company values
• Influence the public and key opinion
formers
• Positively contribute to brand image,
marketing & communications
• Business benefits – employee
engagement and skills development
• Make our employees proud
What we were looking for
in a flagship partner
It’s all in the name... or is it?
• Well-known charity? Or one
where corporate can really make
a difference
• Operations that mirror company’s
geographical coverage
• Programme more important than
the partner’s name?
• Focus of cause area must fit
corporate aspirations
The Goldilocks theory
• Not too big... not too small... but
just right
• Big enough investment to make
a real difference
• But not so big that the charity is
over dependent
Show me the numbers!
• Easily
communicated
outputs and impacts
• Breadth (large
numbers) and depth
(best in class
models for a
multiplier effect)
It’s all about people
• Contacts that exist before the
deal
• The ‘pitch’ team
• Who will be working together?
• Keen, knowledgeable,
passionate, professional,
personable, responsive
All good things come to an end
• How can the work outlive the
partnership?
• Leverage – and legacy
• How can the partnership itself
enhance the NGO’s longer-term
future?
The process
Project
initiation
• HSBC plan to create new community programme
• Desired results - greater impact for society & business
• Good Values hired to create initiative & lead process using ROSI Model
Return on Social Investment (ROSI) Model
TM
Project
initiation
• HSBC plan to create new community programme
• Desired results - greater impact for society & business
• Good Values hired to create initiative & lead process using ROSI Model
• Health check: stakeholder engagement, societal needs, competitor
benchmarking
Define cause • Ideation: cause areas, community ideas, strategy development
• Testing: Cross function workshop, quantitative/qualitative research, think tank
area
Identifying the BIG cause idea
Fits with brand,
organisation and
objectives
BIG
CAUSE
IDEA
Relevant and emotive to
stakeholders
© 2010 good values
Societal impact meets a clear
societal need
Project
initiation
• HSBC plan to create new community programme
• Desired results - greater impact for society & business
• Good Values hired to create initiative & lead process using ROSI Model
• Health check: stakeholder engagement, societal needs, competitor benchmarking
• Ideation: cause areas, community ideas, strategy development
Define
• Testing: Cross function workshop, quantitative/qualitative research, think tank
cause area
Partner
selection
• Desk research & face-to-face meetings (20+ charities)
• RFI (17), RFP (5), both reviewed against criteria matrix plus due diligence
• Three charities invited to final face-to-face pitch with HSBC and Good Values
Scoring matrix
Good Values robust selection criteria included:
A total of 39 categories
Five mandatory elements
Strategic direction, scale, experience, reputation
Programme assessment
Account management/ability to work with
Project
initiation
• HSBC plan to create new community programme
• Desired results - greater impact for society & business
• Good Values hired to create initiative & lead process using ROSI Model
• Health check: stakeholder engagement, societal needs, competitor benchmarking
• Ideation: cause areas, community ideas, strategy development
Define
• Testing: Cross function workshop, quantitative/qualitative research, think tank
cause area
Partner
selection
• Desk research & face-to-face meetings (20+ charities)
• RFI (17), RFP (5), both reviewed against criteria matrix plus due diligence
• Three charities invited to final face-to-face pitch with HSBC and Good Values
• Define programme
• Agree contracts
Final
negotiations • Implementation and partnership management
Five top tips for being ‘CR friendly’
1. Think ‘stand out’
• The 26,000 factor - truly differentiate yourself
• Be brave and innovative
• Utilise all media channels including social media
2. Put yourself in the company’s shoes
• Strategic and values relevance
• Think win-win
• Sector exclusivity
• How will this deliver ROSI?
3. Ensure your proposition is truly compelling
• How will a CI investment change society?
• New vs. ongoing work - positioning
• Make the corporate feel ‘special’
4. Get the chemistry right
• People give to people
• First impressions count, but play for long term
• Show you will be a great partner
5. Pay attention to the basics...
• Deliver on time
• Answer the brief
• Win over the agency as well as the company