Toolkit

How to raise money from the private sector to

support youth volunteering

Rodney Reed Reed Consultancies

Resources from the Private Sector

• Donations (from donor companies – relatively rare)

• Sponsorship (from sponsoring companies – more common)

• Opportunity for ‘real money’ and ‘in kind’ support

So how much is available?

• 3.7 million companies of which 7,000 employ more that 250 employees

Source: Corporate Fundraising Pub CAF/DSC/IoF

• Gifts in Kind - The Princes Trust and Crisis topped the ‘league’ with over £2 million in donated gifts and services

Source: Gifts in Kind www.dsc.org.uk/corporatecitizen

Types of company giving

• Philanthropic giving – no strings attached (not the ‘norm’ and often made via Community Foundations)

• Cause Related Marketing• Employee support – sometimes with

funds raised matched by the company

• Transferring resources – cash or ‘in kind’

Cause Related Marketing

“ a commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product or service for mutual benefit”

Definition produced by Business in the Community (BiTC)

Corporate Social Responsibility

“Hard to define but as a concept CSR is about a holistic and sustainable approach to business that considers all its potential impacts and responsibilities to society, the environment and shareholders rather than focussing solely on financial responsibilities to shareholders, as has traditionally been the case”

From: Corporate Fundraising Ed. Valerie Morton Pub. DSC/CAF/IoF 2002

15 of the ways the private sector can make resources available to

youth volunteering projects• Employee volunteering

programmes• Gift of end product for

use or sale or raffle prizes

• Give As You Earn – Payroll Giving

• Sponsorship• Donations• ‘Charity of the Year’• Stationery supplies• Free use of the

Company Board Room/conference room for important meetings

• Staff ‘outposted’ or seconded

• Community/Staff Challenge

• 100 hours of professional time

• Use of empty buildings for office space or storage

• Photocopying and printing and franking

• Pre-owned office furniture and computers

• Employee fundraising – ‘matched’ by the company

Examples of private sector support from previous

workshops• Co-op Community Dividend

(grants up to £5,000)• B&Q Community Awards• Lloyds TSB Foundation (grants)• Northcuts Garden Centres (gifts

‘in kind’)• Barclay’s Bank Plc (Employee

Volunteering scheme)

% of funding provided to the voluntary sector by our ‘donors’

“Out of a total voluntary sector income in 2003 of £20.8 billion, government contracts contributed 37.0%, the general public 36.6%, charitable trusts 6.6% and business 4.3%”

Source The Guide to UK Company Giving 2005 Ed. John Smythe Pub. Directory of Social Change

Why would a company be interested in a voluntary

organisation?

• Corporate Social Responsibility – to be a ‘Good Corporate Citizen’

• To create goodwill• Image – Prestige – your organisation can give them good

PR• To build good relations with employees• Target – to be associated with causes that relate to their

business• Reach• Media exposure• Cause Related Marketing – your donors are similar to

their customers• Social Investment• Cheap means to get noticed• Personal quirk or because they’ve always given

• If you know what motivates them then you can ‘sell’ to them!

• Know your USP (Unique Selling Point) what makes you different – what will help you win the sponsorship ‘beauty contest’

“the business of business is business”

• Not ‘simple’ philanthropy – more likely to be enlightened self interest

• Commercial advantage• Increased sales/turnover/market

share/profit• Reach ……

Benefits to the private sector (from CRM)

• Awareness – corporate, brand, product

• Enhanced reputation• Increased sales• Attracting and retaining customers• Differentiation• Better motivated employees• Positive relationships with legislators

and regulators• Tangible benefits for communitiesSource: Corporate Fundraising Pub CAF/DSC/IoF

Benefits for non-profit organisations (from CRM)

• Awareness• Increased/increasing income• Broadened fundraising portfolio• Enhanced reputation• Improved profile• Enhanced brand• New channels of communication (via product,

people, place• Leveraged funding opportunities• New partnershipsSource: Corporate Fundraising Pub CAF/DSC/IoF

Top 25 companies by UK community contribution (2003/4)

1) Royal Bank of Scotland Group Plc £40.1 million

2) Lloyds TSB Group Plc £36.0 million

3) Barclays Plc £29.4 million4) Northern Rock PLC £19.3

million5) HBOS Plc £19.3 million6) BT Group plc £18 million7) GlaxoSmithKline Plc £11.1

million8) Unilever UK £8.7 million9) Vodaphone Group £7.4 million10) Diageo Plc £7.3 million11) Marks and Spencer Group £7.2

million12) BP Plc £6.7 million13) J Sainsbury plc £5.7 million

14) Centrica Plc £5.3 million15) British Sky Broadcasting

Group £5.0 million16) The Boots Group Plc £4.5

million17) Scottish Power Plc £4.3 million 18) KPMG £4.3 million19) National Grid Transco Plc £4.3

million20) Zurich Financial Services

(UKISA) £4.2 million21) Ecclesiastical Insurance Group

Plc £4.1 million22) Shell £4.0 million23) EDF Energy £3.9 million24) Rio Tinto Plc £3.6 million25) The Co-operative Group £3.4

million(Source Guide to UK Company Giving

2005 DSC)

Top 25 companies by UK charitable donation (2003/4)

1) Lloyds TSB Group Plc £33.8 million

2) Northern Rock PLC £19.3 million

3) Royal Bank of Scotland Group Plc £14.7 million

4) Barclays Plc £9.9 million5) Unilever UK £7.6 million6) Diageo Plc £7.3 million7) HBOS Plc £5.8 million8) Ecclesiastical Insurance Group

Plc £4.1 million9) Marks and Spencer Group £4.1

million10) GlaxoSmithKline Plc £4.0

million11) British Nuclear Fuels £3.3

million12) BUPA Ltd £2.5 million13) Reuters Ltd £2.5 million

14) Camelot Group Plc £2.5 million15) British American Tobacco Plc

£2.4 million16) The Boots Group Plc £2.4 million17) ICAP Plc £2.1 million 18) Legal and General Plc £1.7

million19) EDF Energy £1.7 million20) John Lewis Partnership Plc £1.7

million21) J Sainsbury Plc £1.6 million22) Abbey £1.5 million23) BP Plc £1.5 million24) Intercontinental Hotels Group

Plc £1.4 million25) Whitbread Plc £1.4 million(Source Guide to UK Company Giving

2005 DSC and these figures are for statutorily declared charitable donations only. This can understate contributions particularly for the largest companies)

The structure of companies

• Board of Directors and the Chair• Chief Executive – Managing Director• Marketing Department (* the big money is here)• Corporate Responsibility Department (*and

here)• Public Relations Department• Personnel Department• Works Charity Committee

• Chose your entry level carefully – target the ‘decision-maker’

• Work through a personal contact (if you have one)

A successful approach is 60% research and 40%

application!• Research the company

– It’s business – does it compliment your work

– It’s location – are key sites near your projects

– Key personnel – are any known to you– It’s size – turnover and staff numbers– It’s charitable policy and previous

involvements– It’s motivations for charitable giving– It’s current strategy – is it expanding

or ‘downsizing’– Ethics – will it contravene your ethical

policy

Ethical Issues(source: Corporate Fundraising Pub. CAF/IoF/DSC)

The company• Compatibility with

your cause• Nature of products

and services• Employment

practices• Quality standards• Environmental

policy and practices• Approach to CSR

Fundraising mechanism• Adherence to law/industry

guidelines (the Charity Commission and the Institute of Fundraising provide guidance and ‘codes of practice’)

• Nature of the fundraiser – lottery affinity card etc.

• Associated products – source, safety

• Cost effectiveness• Minimum guaranteed

donation• Any limits on the use of the

donation

How to negotiate with a company

• Research them before you meet them

• Try hard to make your ‘sales pitch’ ‘face to face’

• Focus on what they will get for their money

• Not a eulogy on your work

• Be persistent & professional & focussed & specific

• Point out the Tax advantages and explain Tax Efficient Giving methods

Types of Approach

• Written proposals– Standard– Bespoke

• Opportunistic approaches

• Personal relationships

• Always try to get ‘face to face’ with the decision maker as soon as possible

Pitfalls• Fickle decisions• Ethical nightmares• Raised expectations – but fails to deliver for

either side• Lost money – and worse lost reputation• Conflicts of culture in the relationship• You discover you are a ‘fig leaf’• Timescales – too long or too short• Evaluation ineffective or highlights failure• Over-reliance on one Company• Difficulties in getting the ‘promised cash’

paid over• No exit or sustainability strategy

‘Top Tips’ on getting funding from the private sector to achieve a ‘step change’ in transforming the ways young people become

involved in volunteering

• Do the Research• Commit resources – staff

and an Industry / Development Committee

• Get in at the right place• Get in at the highest level -

the decision maker• Show them what they are

going to get for their investment

• Be sure you know what you are ‘selling’ but don’t waste time eulogising about your project

• Know what your ‘product’ is worth – don’t sell your product to cheaply

• Negotiate don’t beg

• Be clear and consistent and persistent

• Be professional – ‘look the part’, meet deadlines TIME IS MONEY

• Allow sufficient time – 18 months!

• Present a carefully worked up, professionally presented ‘proposal’

• Plan to ‘get the tax’ as well – Gift Aid to Registered Charities

• Know how you will evaluate the project and how you will prove you are delivering the ‘benefits’ the sponsor/donor company wants

• Don’t prevaricate – look to ‘close the deal’

• Seek to build up the relationship over time

Some helpful ‘Guide Books’ and ‘Directories’

• The Guide to UK Company Giving 2005 Ed. John Smythe

• Corporate Fundraising Ed. Valerie Morton

• Finding Company Sponsors for Good Causes Chris Wells

• UK Company Giving 2005 CD-romAvailable from the Directory of Social

Change www.dsc.org.uk e-mail books@dsc.org.uk

More helpful resources• The Kompas Register of British Industry

and Commerce• Key British Enterprises• The Waterlow Stock Exchange Yearbook• Major Unquoted Companies

Business in the Community – Prohelp (was the Professional Firms Group) has a network of regional offices (UK Guide to Company Giving Ed. John Smythe 2005 Edn. Pub DSC/IoF/CAF p.377)

Another useful contact

• Your Local Council – Rating Department might produce a list of major businesses locally and their Economic Development Department should have a list of major employers in the area.

Toolkit

How to raise money from the private sector to

support youth volunteering

Rodney Reed Reed Consultancies