Profiles in Corporate-Nonprofit Collaboration

As acclaimed throughout this guide, accumulated alms is rapidly alteration and there is a fresh way of accomplishing business. It requires corporations and nonprofits to appoint in attainable and honest chat to actualization partnerships breadth a company’s alms is re ective of the amount ethics that adviser their business; breadth the nonpro t is beheld as an according accomplice and charcoal accurate to its mission; breadth expectations and deliverables are adjourned upfront; breadth the aggregation includes ahead alpha non-cash assets to aerate its investment; and breadth the nonpro t helps the aggregation bear on its accumulated goals.

Chapter 6: Case Studies: Pro les in Corporate-Nonpro t Collaboration actualization 10 case studies that actualize the spirit of the Business of Change. Some are examples of relationships that accept acquired above the archetypal advocacy archetypal into richer, added allusive partnerships. Others allegorize the amount of leveraging pro bono resources, the accent of agreeable a ample ambit of stakeholders, or the ability of one alone to activate a fresh accumulated program.

One affair is clear—all of the companies and nonpro ts took the time to assignment calm to actualization partnerships that would be mutually bene cial and sustainable. These avant-garde partnerships authenticate absolute appulse and will hopefully serve as an afflatus for your own work. Cardinal Bloom and Adequation Ohio

LEVERAGING EMPLOYEE POWER ORGANIZATIONS

Cardinal Health, Inc. is a Fortune 18 healthcare casework aggregation based in Dublin, Ohio and is the better Fortune 500 Aggregation in the state. Cardinal Bloom articles medical and surgical articles and is one of the better distributors of pharmaceuticals and medical food worldwide.

Based in Columbus, Ohio, Adequation Ohio is a non-partisan alignment that serves as an apostle and best for fair analysis and according befalling for LGBT citizens. Through their apprenticeship and beat efforts they appoint and empower individuals, families, organizations, businesses and institutions in Ohio's urban, burghal and rural areas. In addition, they coact with local, regional, statewide and civic organizations and government to attainable hearts and minds; appulse the aldermanic environment, and body political ability for the pro-equality association and accomplish alliance adequation in Ohio.

THE CHALLENGE

For years, nondiscrimination legislation languished in the Ohio Accepted Assembly— no hearings, no vote, no affiliation support. With the accumulation of Adequation Ohio in 2005, it was bright that an organized accomplishment to canyon nondiscrimination legislation in Ohio would charge to accommodate the business community. Because Ohio has no pro-equality legislation for LGBT bodies at the accompaniment level, and the Accepted Assembly had never alike voted on a pro-equality allotment of legislation in its history, Adequation Ohio knew this would be a challenge. In adjustment to actualization the legislators—particularly Republican legislators—there was bright business abutment for the nondiscrimination bill and appoint added businesses in advocating for the bill, the alignment knew they would charge the aboriginal adopters to be ample and abundant businesses in Ohio.

THE APPROACH

Equality Ohio’s antecedent appraisal of businesses in Ohio acicular to a few critical

players in assorted geographic areas of the accompaniment including Cardinal Health,

among others. A action to accumulate abutment from anniversary of these businesses was

developed and implemented.

Equality Ohio knew from their appraisal that Cardinal Bloom was acute to LGBT concerns. They additionally knew that the aggregation denticulate able-bodied on the HRC

Corporate Adequation Index, that they had in uence with a cardinal of the legislators they were activity to need, that they had aloof assassin a fresh Vice President of Diversity, and that they were in the alpha stages of discussing basic an

LGBT Agent Ability Accumulation (ERG).

Equality Ohio rst accomplished out to one of their government relations professionals to altercate the bill and its history, Ohio’s accepted cachet in agreement of LGBT rights and protections in accompaniment law, and the accumulated action they were planning to accumulate Republican legislators’ abutment for the bill. A cardinal of conversations took abode over a beforehand of a few months while application was accustomed to this ask.

At the aforementioned time that the ask for abutment of the bill was happening, the agent founders of the basic LGBT ERG accomplished out to Adequation Ohio for advice about ERGs and to ask for their accord and affiliation in the affairs kick-off.

THE RESULTS

As a aftereffect of Adequation Ohio and Cardinal Health’s assignment calm through both the Government Relations and the Human Resources/Personnel Departments (speci c to Diversity) the afterward occurred over the accomplished year:

1. Cardinal Bloom was one of the rst ample administration in Ohio to assurance on as adherent of the legislation and encouraged added companies and accommodation of business to abutment as well.

2. Cardinal Health’s ERG is up and alive strong—and Adequation Ohio has been affianced with them (individual members, the accumulation and added advisers of Cardinal) for assorted activities on a cardinal of occasions.

3. One of Cardinal Health’s government relations professionals fabricated claimed buzz calls to two speci c Representatives allurement for their abutment back the nondiscrimination bill accustomed hearings in House Committee. One of these Representatives is now the rst Republican in Ohio accompaniment aldermanic history to anytime vote yes on a pro-LGBT allotment of legislation (and the alone R yes in committee).

4. Cardinal Bloom testi ed in abutment of the nondiscrimination bill in committee. The alone who provided the affidavit on account of Cardinal was one of the founders of the LGBT ERG. This affiliation was altered in that no money was exchanged at any point accurate affiliation in the best faculty of the word.

Credit Suisse and Lambda Legal

BRIDGING THE GAP THROUGH MUTUAL BENEFIT

ORGANIZATIONS

Founded in 1856, Acclaim Suisse can alarm aloft a continued attitude and abounding years of acquaintance in the cyberbanking business. It provides companies, institutional audience and high-net-worth clandestine audience worldwide, as able-bodied as retail audience in Switzerland, with advising services, absolute solutions, and rst-class nancial products. Acclaim Suisse is alive in over 50 countries and employs added than 47,000 bodies from about 100 altered nations. With such a ample reach, it is no abruptness that agreeable difference, including abutment of its LGBT employees, allies and broader LGBT communities, is a basic of business at Acclaim Suisse. The Acclaim Suisse cast of abutment is not your archetypal analysis autograph exercise; it involves cerebration alarmingly about needs and resources. The ambit of efforts accommodate LGBT-training for all chief managers in the United States, LGBT-employee networks globally, and LGBT-speci c clandestine cyberbanking apabilities and focus.

Lambda Acknowledged Defense & Apprenticeship Fund (Lambda Legal) is the oldest and better acknowledged alignment in the LGBT civilian rights movement. For over 35 years, it has been ghting to accomplish abounding acceptance of the civilian rights for LGBT bodies and those with HIV through appulse litigation, apprenticeship and attainable policy. Head- quartered in Fresh York City, Lambda Acknowledged maintains ve bounded eld of ces about the country.

THE CHALLENGE

There are abounding aces causes for an academy like Acclaim Suisse to abutment but, unfortunately, bound budgetary resources. The assurance of which organizations to abutment becomes easier back assorted advantages aftereffect for all parties involved. For this acumen Acclaim Suisse has restructured its access to acknowledging nonpro t organizations from authentic advocacy to mutually bene cial anniversary partnerships. Rather than bright dinner-based sponsorships, Acclaim Suisse asks its abeyant ally to appraise their needs and anticipate creatively about leveraging the bank’s assets and interests. One of the best acknowledged of these partnerships has been with Lambda Legal. The Acclaim Suisse-Lambda Acknowledged affiliation incorporates Lambda Legal’s donor development and educational beat with Acclaim Suisse’s objectives of business development, aptitude recruitment, and accessory of agent networking opportunities both aural and alfresco of the rm.

THE APPROACH

Through a appeal for angle process, Lambda Acknowledged was able to booty a high-level actualization of all the needs of its organization, which fell into three capital categories:

Based on the identi ed goals of Acclaim Suisse (business development, recruiting, association relations/volunteerism, supplier diversity, research, administration development opportunities for employees), Lambda Acknowledged and Acclaim Suisse created a affiliation that resulted in the afterward contest for 2009:

1. Above Donor Acknowledgment Event—Through Acclaim Suisse’s all-around advocacy of the Fresh York Philharmonic, an black was created for 30 Lambda Acknowledged above donors and 20 Acclaim Suisse high-net account clients. The black included a clandestine accession with the conductor, followed by banquet and the performance.

2. Lambda Acknowledged Women’s Event—Both Lambda Acknowledged and Acclaim Suissesought opportunities to access beat to the women’s community. By accordingly hosting an accident with Lambda Acknowledged women donors in affiliation with Acclaim Suisse’s Americas Women’s Network, both were able to accommodated anniversary added and the goal. The event, adjourned by Acclaim Suisse, was at an absolute venue, in Fresh York City with added than 220 women in actualization (roughly 65 from Acclaim Suisse and the antithesis from Lambda Legal). Lara arner, co-chair of Acclaim Suisse’s women’s arrangement and Director of Acclaim Suisse Research, as able-bodied as Fran Goldberg, Deputy Director of Lambda legal, were the keynote speakers.

3. Lambda Acknowledged “Forum Conveniens”—For a cardinal of years, Lambda Legal’s Chicago of ce has hosted an accident focused on educationa beat to accepted law acceptance as able-bodied as assembly of key law rms. This year, Acclaim Suisse hosted the countdown Fresh York City accident at its U.S. headquarters. The Acclaim Suisse LGBT OPEN agent arrangement was the host, with Neil Radey, Acclaim Suisse Accepted Admonition of the Americas, an Judy O’Kelley, Director of Law School Outreach, confined as the keynote speakers. Added than 100 acceptance and law rm attorneys as able-bodied as 80 Acclaim Suisse advisers attended.

4. San Francisco Bene t Accident Kickoff—Each year, Lambda Acknowledged hosts a alpha accident for its anniversary San Francisco Dinner. This year, the accident was hosted at the admirable home of a bounded supporter. Acclaim Suisse’s donation to Lambda covered all the costs for the event, including catering, liquor and giveaways. Almost 80 Lambda donors and 10 Acclaim Suisse advisers and clandestine bankers attended.

5. Lambda Acknowledged in the Pines—For 30 years, Lambda Acknowledged has hosted a above donor agronomics accident in Fire Island Pines. The 2009 accident was hosted at the home of a lath affiliate with Acclaim Suisse funds offsetting costs. Added than150 fresh and abeyant donors purchased tickets to attend, as able-bodied as ve Acclaim Suisse advisers and clandestine bankers.

THE RESULTS

Through the ve events, both Lambda Acknowledged and Acclaim Suisse were able to accomplish their goals:

• Increased acknowledgment and fresh donor development for Lambda Acknowledged from acclaim Suisse audience and employee

• Increased acknowledgment and fresh applicant development for Acclaim Suisse fromLambda Acknowledged donors

• Above donor acknowledgment opportunities through Acclaim Suisse at no amount to the donors in venues not attainable to Lambda Acknowledged through added means

• Recruiting opportunities for Acclaim Suisse through association afterimage and events

• Networking/volunteer opportunities for Acclaim Suisse employees

• Advancing and arresting LGBT association support, in venues and contest alfresco acceptable bright dinners

• Opportunities to aggrandize Lambda Legal’s educational beat to the LGBT community, students, donors and beyond

• Appulse to Acclaim Suisse above the LGBT association through the women- focused initiatives

• Provided a accompaniment to the accumulated alms belvedere of Acclaim Suisse by accretion the rm’s absolute abutment of Lambda Legal

Often times the attainable and clandestine sectors absence opportunities to beforehand their goals and abutment one another, because they do not allege the aforementioned language. The Acclaim Suisse and Lambda Acknowledged affiliation represents a arch breadth alternate bene ts are explored. Because the arch was congenital on a solid foundation of acceptable amusing and business returns, the accommodating organizations acquire added than they originally imagined. Lambda Acknowledged is not “just accession cause”, it is a partner.

Dewey & LeBoeuf LLP and In The Life Media

PRO BONO SERVICES RELIEVE THE BUDGET

ORGANIZATIONS Dewey & LeBoeuf LLP is internationally accustomed for its outstanding pro bono casework and was afresh accustomed as Pro Bono Firm of the Year by the District of Columbia Bar. With assortment as the signature allotment of its pro bono work, the law rm has a continued history of confined the LGBT community, including its ling amicus briefs with the Fresh York Court of Appeals and the Iowa Supreme Court on account of children's rights in the same-sex-marriage case in those states and with the California Supreme Court gluttonous to assure the rights of the 18,000 same-sex couples affiliated afore the casual of Proposition

Since 1992, In The Life Media (ITLM) has been transforming attainable perceptions of the LGBT community. Afore television shows like Will & Grace and The L Chat hit the airwaves, media portrayals of the LGBT association were generally one- dimensional and not often positive. Its Emmy-nominated aboriginal program, IN THE LIFE, abstracts the abounding ambit of LGBT experiences, including backroom and attainable policy, claimed and association health, as able-bodied as adoration and spirituality.

THE CHALLENGE

Over the beforehand of 18 seasons, ITLM had accumulated the better accumulating of LGBT archived footage in the world. Considering the actual signi cance of such a admired resource, ITLM bare to ensure that this advice was appropriately preserved and fabricated attainable not alone to added assembly of the LGBT association but additionally to the accepted public, including advisers and lmmakers. ITLM knew that it was analytical that they defended all acknowledged rights, clearances and adapted licenses for their growing archive, but the amount for acknowledged fees was not article they could calmly blot into their budget. They had a accord with a law rm that had appropriate ITLM to pay acknowledged fees. The claiming was to analyze a law rm that would action pro bono casework to ITLM.

THE APPROACH

The Co-Chair of ITLM’s Lath of Directors began a chat with a acquaintance who is a accomplice at Dewey & LeBoeuf, co-head of Dewey & LeBoeuf's Advice Technology and Bookish Acreage Practice and Chair of Dewey & LeBoeuf's Assortment Committee. The advocate was already accustomed with ITLM and its mission. Since abounding adolescent attorneys are absorbed in media, the Lath Co-Chair believed that acting as admonition to ITLM would accommodate a abundant befalling for Dewey & LeBoeuf attorneys to appoint in an breadth of absorption while additionally announcement amusing amends and assortment both aural the rm and in the community.

The Dewey accomplice is additionally a above backer of the rm's charge to pro bono work. She had adherent signi deceit time and accomplishment over the accomplished several years alive on the gay alliance cases in Fresh York and Iowa but did not actualization herself as absolutely a best for the LGBT community. Rather, she was absorbed in acknowledging the rm's pro bono efforts and in accumulation assortment and admittance into all aspects of Dewey & LeBoeuf. The Lath Co-Chair absurd that a accord with ITLM would be a absolute acquaintance for the rm’s awyers, LGBT and beeline allies alike; it would be an befalling for LGBT assembly to feel affiliated to their community, as able-bodied as an befalling for beeline assembly to apprentice added about the issues affecting the LGBT community.

The Lath Co-Chair had auspiciously accumbent ITLM’s needs for pro bono acknowledged admonition with a rm that was committed to assortment and admittance and account to the community. She asked for the support.

THE RESULTS

The bene ts accept already been embodied in the pro bono admonition accord amid ITLM and Dewey & LeBoeuf; of the 17 attorneys who accept formed on ITLM behalf, alone ve analyze as LGBT. Dewey & LeBoeuf has provided ITLM with pro bono acknowledged admonition on the issues of bookish acreage and affairs apropos to the cataloging, attention and licensing of ITLM’s massive archive. In accession to the educational bene ts of authoritative these assets attainable to the public, ITLM has a fresh anatomy of acquirement to abide its advancing work.

Since ITLM began its accord with Dewey & LeBoeuf, they accept accustomed abetment with transforming and afterlight their acknowledged agreements, including

those accompanying to production, rights, clearances and licenses, actualization releases and contracts. In addition, with Dewey & LeBoeuf’s advice they accept amorphous assessing all acknowledged abstracts (releases, licenses, etc.) associated with ITLM's growing annal and with its fresh cardinal business plans. Dewey & LeBoeuf additionally has advised and is allowance alter ITLM’s business behavior and practices, such as their cadre chiral and Lath of Directors bylaws.

Dewey & LeBoeuf began alive with ITLM in January 2009, and the pro bono acknowledged casework provided appropriately far are admired at added than $200,000.

ITML’s assignment with Dewey & LeBoeuf has empowered ITLM agents to proactively appoint in all aspects of their business negotiations with con dence, decidedly in agreement of their assembly and licensing agreements to acquiesce footage to be broadcast beyond assorted platforms, including the Internet, in accordance with its fresh cardinal plan. The casework provided additionally accept enabled ITLM to accompany opportunities with abeyant annal accumulator and canning locations.

Effective Partnerships 45 Questions to Consider

There is no single question (or answer) that provides the right direction for every presentation, proposal or partnership that a nonpro t develops for a company. But there are dozens of questions for nonpro ts to consider before meeting with a potential partner that might give good ideas on how to access corporate resources and build long-term relationships.

Chapter 5: Effective Partnerships: 110 Questions to Consider asks some of the more important questions to consider before approaching a potential company as a partner on LGBT equality. While these questions are primarily focused for those working at nonpro ts, we believe corporate readers of this guide can also learn from them when considering how to build a business case internally for support of a nonpro t. The CECP website also offers a great resource for those working within corporations, “Giving Of cer Quick Tips”, which is located in the Resource section of the website www.corporatephilanthropy.org.

KNOW YOUR VALUE:

Recognize, measure and respect the value of your organization and brand and the impact your work has on the world.

ASSETS: There are many reasons why a company might want to partner with a nonpro t focused on advancing LGBT equality. Your name and brand recognition, community presence, issue expertise, program development, and more. Understanding the unique and diverse assets that your organization may offer to a company is important to outline before approaching a potential partner.

1.What is your value propostion?

Are your organization’s mission and values aligned with the company’s values?

2.Do you have experience in developing and managing creative and strategic partnerships?

3.Does your organization have unique expertise or attributes that bring added value to the corporate partner?

4.What are the top ve reasons why this company should partner with your organization?

5. LIABILITIES: Just as there are many reasons why a company would partner with a nonpro t focused on advancing LGBT equality, there are many reasons they might not. Your philanthropic missions are not aligned, the business case has not been made or your geographic scope is too small (or big). Before approaching a potential partner, research the possible drawbacks that your organization might represent for a company and be prepared to speak to them.

6.What are your drawbacks?

Is the scope of your organization too small, or too big, for a particular company?

7.What are the ways in which your organization’s work does not align with the business objectives of this company?

8.What are the top ve reasons companies give for not partnering with your organization?

9. What are the top ve reasons why this company might not invest in your work?

10.ROI: Demonstrating the impact and return-on-investment (ROI) of your organization’s work is an important area to understand and outline for a potential corporate partner. Many companies will be interested in themeasureable impact of your work over time, as well as how your work coul apply directly to their community partners, employees, consumers, share olders and stakeholder groups.

11. What is the measureable impact of your work? Have your programs helped the stakeholders of this company?

12. Can you show the social or environmental ROI of your work?

13.What’s the potential nancial ROI for this company if it partners with your organization?

14. Can you demonstrate how you are an outcomes-based organization?

15. SAYING NO: The two most important letters in all corporate-nonpro t partnerships are N and O. Mutually bene cial, sustainable and rewarding partnerships between nonpro ts and corporations are those that are aligned in mission, vision and objectives. Be ready to say NO to everything else.

16.Are you willing to say no?

Have you ever deviated from your nonpro t mission in order to secur funding? Why or why not?

17. Would you be willing to work with a company whose corporate mission does not align with yours?

18. What industries and companies do not represent your organization an its objectives?

19. What guidelines will you establish in managing the partnership to make sure mission, vision and objectives stay aligned?

20. CUSTOMIZATION: Grant request forms from companies, foundations and government agencies tend to have standard formats and elds of entry. However, even within these standard formats, nonpro ts have the opportunity to use language that re ects creativity and special knowledge of the business community. Going beyond a cookie-cutter approach and tailoring terminology may increase your chances of getting corporate resources and investment.

21. Is your approach cookie-cutter?

22. Have you tailored the language in your proposal to re ect the company’s mission and values rather than simply cutting and pasting language from another proposal?

23. Have you expressed your openness to exploring opportunities with this company that include both cash and non-cash resources?

24. Have you integrated speci c key words and references to the corporate mission, vision and objectives of this company?

25. Do you address or reference all the different and relevant departments in the company that might have resources?

IN-KIND: There are many kinds of resources that a company can provide to a nonpro t, including pro bono services, product donations and institutional and operational offsets. In-kind donations can help both the company and the nonpro t avoid issues related to limited budgets. Nonpro ts should think creatively about partnership opportunities that go beyond cash and make strategic use of in-kind corporate resources.

26. Have you leveraged in-kind opportunities?

27. What assets does the company have, including products, event spaces, printing facilities, etc., that you could use to offset costs in operations, programming or fundraising?

TIPS

Be ready and available accept skilled support. Pro bono generally is a more sophisticated contribution than traditional volunteerism, so assign staff or board members to solicit and oversee pro bono engagements in their areas of expertise.

Meet with corporate funders to discuss the top three business issues outlined in your strategic plan; ask your funders if they can identify expertise within their organizations to hel address these needs.

When negotiating sponsorship contracts, think beyond the cash mentality and recognize pro bono as a currency that can garner recognition and bene ts. This will underscore its value and encourage more of it.2

28. What of cial pro bono services does the company provide, and how could you use them to further your mission?

29. How could you leverage product donations from this company?

30. Can you show ROI from in-kind donations and help the company champion the work in an annual report?

PARTNERSHIP: The difference between the word sponsorship and partnership is important in the landscape of corporate philanthropy. A sponsorship implies writing checks to help pay for events, materials or programs. A partnership, on the other hand, is a more powerful word that suggests a certain equality and mutual respect in the relationship. Nonpro ts and companies open to framing relationships as partnership may grow deeper, more sustainable relationships that leverage and amplify the unique assets of both organizations.

31. Are you willing to partner?

32. Do you have the experience, knowledge and resources to dedicate to building and sustaining a relationship with this company?

33. Would you be willing to co-brand aspects of the relationship, such as an event, set of materials or program?

34. How willing are you to share the spotlight with this company?

35. What are your key learnings from past partnerships, including successes and failures?

TIP

Find a corporate nonprofit partnership that you respect and try to incorporate those ideas in your proposal.

COLLABORATION: Your willingness to work with other nonprofits,particularly others in the LGBT arena, on a proposal for a company could be a creative way to build a partnership or get corporate resources. The journey toward LGBT equality is a complicated and ever-changing landscape. A collaboration of nonpro ts with a clear and aligned missionmight be more interesting for a company unsure of the organizations with hom it should partner.

36.Have you explored working with other nonpro ts?

37. What nonpro ts, whether LGBT or not, have missions that align with yours?

38. How would these other nonpro ts amplify your strengths and address your weaknesses?

39. Have you built, or worked as part of, a successful collaboration in the past?

40. Why would a collaboration of nonpro ts working together be better for this company than working apart?

OWNERSHIP: Companies seek to differentiate themselves from their competition by creating competitive advantages. Whether attracting and keeping clients or recruiting and retaining employees, companies want to develop products, services and partnerships that stand-out from the competition. Developing a partnership with an LGBT nonpro t might be an opportunity to do just that, to create something unique for the company.

41. Is your idea ownable?

42. Who are the company’s competitors and what have they done?

43. What have those competitors done on LGBT equality and other issue your organization addresses?

44. Are you proposing an idea for this company that has been done before?

45. How might your idea give a competitive advantage to this company?

National Gay & Lesbian Chamber of Commerce

The National Gay & Lesbian Chamber of Commerce (NGLCC) is the business advocate and direct link between LGBT business owners, corporationsand government, representing the interests of more than 1.4 million LGBT businesses and entrepreneurs. The NGLCC is committed to forming a broad- based coalition of LGBT owned and -friendly businesses, professionals and major corporations for the purpose of promoting economic growth and the prosperity of its members.

As a national umbrella organization, the NGLCC is a clearinghouse of ideas and information for and between businesses and organizations. Representing 47 local and regional LGBT chambers of commerce in the United States, as well as internationally (through its sister organization, the IGLCC), NGLCC is the premier advocate for LGBT-owned businesses, professionals, students of business and corporations that seek to expand the community's nancial opportunities, economic growth, continued innovation and equality.

Through its Supplier Diversity Initiative, NGLCC provides certi cation to LGBT businesses whose owners hold a 51 percent or greater stake in their business. The certi cation opens doors to lucrative private and public sector contracting opportunities at many of the world's largest corporations and some domestic government agencies.

HIGHLIGHTS

The NGLCC website contains a wealth of information intended to help LGBT- owned businesses, employees and employers. Some of the items of interest on the NGLCC website include:

• Supplier Diversity Initiative, which offers businesses tools to makeconnections with American’s top corporations and each other

• Regulations or changes that relate to small business through agencies such as the U.S. Department of Commerce and Small Business Administration

• Community section that contains a listing of LGBT Business Organizations by state

• Resources to help women and transgender-owned businesses

WHY THIS IS A GOOD RESOURCE

We believe that the LGBT Business Organization listing of the Community section may be of particular interest to local or regional organizations. The section contains a listing, by state, of the local af liates of the NGLCC with contact information and a link to the af liate’s website. (Note: Not all states or regions within states may have a local af liate.)

The listing is a good resource for local organizations to identify businesses in their region with which they might be able to establish partnerships. Many of the local af liates host regular networking meetings and other events, most of which are publicized on their websites. Such opportunities provide nonpro t professionals with the opportunity to meet business leaders in their region to talk about how they might establish mutually bene cial partnerships.

Rating Equality Organizations and Indices

LGBT nonprofits and corporate partners can offer each other mutually beneficial resources. Among them is talent recruitment and retention. Supporting, partnering with, and otherwise engaging LGBT nonpro ts enhances a company’s placement on several indices for diversity and inclusion, corporate citizenship and social responsibility, and innovation. Chapter 4: Rating Equality: Organizations and Indices offers background information on a few notable organizations that evaluate, rate, support or promote companies advancing LGBT equality in their work or workplace. Nonpro ts should consider how the resources, surveys, statistics and studies from these organizations can be incorporated into proposals or partnerships with a company. Corporate readers should find some of this information useful as a benchmarking tool when evaluating their own companies and LGBT initiatives.

HRC’s Corporate Equality Index

www.hrc.org/workplace

Since its beginning in 2002, the HRC Foundation’s annual Corporate Equality Index (CEI) has provided major U.S. businesses with a roadmap for establishing and maintaining inclusive workplaces for LGBT employees. The number of employers rated from the rst CEI to the present has jumped from 319 to 590; it has quickly become the premier benchmark for businesses to gauge their success on LGBT inclusion against competitors.

The largest and most successful U.S. employers are invited to participate in the CEI and are identi ed through the following lists:

• Fortune magazine’s 1,000 largest publicly traded businesses

• American Lawyer magazine’s top 200 revenue-grossing law rms

Forbes magazine’s ranking of the 200 largest private businesses is also included in CEI results, but HRC cannot guarantee that each was invited because contact information is not as easily accessible as for the Fortune and AmLaw lists. Any company with more than 500 employees may also request to be surveyed.

Businesses that achieve a rating of 100 percent in this report are recognized as Best Places to Work for LGBT Equality. See www.hrc.org/placestowork.

Businesses are rated on the following six categories:

1. Non-discrimination policy, diversity training—sexual orientation

2. Non-discrimination policy, diversity training and bene ts—gender expression or expression

3. Partner bene ts

4. LGBT employee resource group/diversity council

5. Appropriate and respectful advertising and marketing or sponsorship of LGBT community events or organizations

6. Responsible behavior toward LGBT community; does not engage in action that would undermine equality

HIGHLIGHTS

• HRC Employer Search, a free online database of several thousand U.S. employers, available at www.hrc.org/employersearch. Detailed information on each employer rated in the CEI is included.

• Buying for Equality, a consumer-oriented guide based on CEI ratings,available at www.hrc.org/buyersguide. Distributed every November to coincide with the start of the winter holiday and shopping season, the guide offers LGBT consumers—with an estimated buying power of $759 billion in 2009, according to Witeck-Combs market research—an accessible reference to the most recognizable consumer brands and their corresponding CEI rating.

• Best Places to Work 2010, a listing based on CEI results and segmented by industry.

• Top Law Firms for Equality, a list of surveyed law rms as part of the CEI ratings.

WHY THIS IS A GOOD RESOURCE

A CEI rating cannot convey all the nuances of a business’ particular approach to LGBT workplace inclusion, but it can be a baseline reference for employers, as well as current and potential employees, consumers, investors and potential nonpro t partners.

Eighty-three percent of CEI-rated businesses report some form of external engagement with the LGBT community, through marketing, advertising and recruitment efforts or philanthropic contributions to LGBT organizations. Through philanthropic nancial support or donations of products or services, businesses can support LGBT nonpro ts. Typically, this is strategically connected to the core business of a company.

The employer database provides information on whether or not the company is engaged in some form of activity with LGBT nonpro ts. It also includes contact information for the company’s Employee Resource Group for organizations looking for an introduction or point of entry to a company. For large companies with local or regional of ces, this could be a good place for local and regional organizations to make an initial contact, as well as for national organizations. Go to www.hrc.org/workplace for full details on all reports.

DiversityInc. Top 50

www.diversityinc.com

Now in its 10th year, DiversityInc’s Top 50 competition involves a detailed, analytic survey of more than 200 questions. The overall intent is not just to track metrics but to draw an accurate picture of a company's culture.

The survey is sent annually to any company requesting it that has more than 1,000 U.S. employees. Companies are assessed within the context of their industries and employee skill sets. The questions have predetermined weightings and are evaluated based on ratios of certain questions, such as work-force demographics compared with new-hire demographics, and relativity of one subject to another, such as mentoring best practices and management promotions.

Any company that does not offer health bene ts to same-sex partners of employees is automatically excluded from the DiversityInc Top 50 and the 11 specialty lists.

HIGHLIGHTS

• DiversityInc Top 10 Companies for LGBT Employees, one of the specialty lists that strives to determine what companies are the right place for LGBT

employees and their friends and families to work. They review several factors, including inclusive bene ts for same-sex partners of employees, strong diversity training programs, recruitment efforts aimed at LGBT people and the vitality of the company's LGBT employee-resource group.

Since workplace demographic data on LGBT employees is inconclusive (most companies don't ask about orientation, and even those that do believe a certain segment is uncomfortable coming out), they also include ratings from HRC's CEI.

DiversityInc also examine the company's web site to assess its visible commitment to the LGBT community, as well as its relationships with external LGBT organizations. They give companies extra points for marketing to the LGBT community and for use with LGBT suppliers certi ed by the National Gay and Lesbian Chamber of Commerce.

WHY THIS IS A GOOD RESOURCE

All the companies listed on the Top 10 Companies for LGBT Employees also have a 100 percent HRC CEI rating. And, 74 percent of The 2009 DiversityInc Top 50 Companies for Diversity received a 100 percent CEI rating this year, compared with 52 percent in 2006 and 28 percent in 2004.

Much like HRC’s CEI, DiversityInc’s lists provide a clear, brief snapshot of a company’s commitment to LGBT efforts. Such information is invaluable to nonprofit organizations seeking partnerships with these companies or for those preparing for a meeting with one of the companies. The listing also indicates other Top 10 lists the company is noted on based on other DiversityInc ratings, including Top 10 Companies for Executive Women, Top 10 Companies for African-Americans, etc.

Go to www.diversityinc.com to view details on the 2009 Top 10 Companies for LGBT Employees.

Fortune 100 Best Companiesto Work For

www.money.cnn.com/magazines/fortune/bestcompanies The 2009 100 Best Companies to Work For® list provides welcome and much-needed good news to employees, employers and the broader public. On average, 90 percent of employees from the workplaces represented on this year’s list say their organizations are great places to work.

To choose the 100 Best, Fortune conducts the most extensive employee survey in corporate America. More than 81,000 employees completed the Trust Index© survey, created by Great Places to Work Institute, as part of the list competition, with 26,000 of those employees representing the companies that made the 100 Best list. They offered their views on the credibility of their leaders, the respect they experience, and the fairness of policies and practices in the workplace. They also spoke of the pride they feel in the work they do and reputation of their companies, and of the tremendous camaraderie they experience among their co-workers.

Ninety percent of employees believe that management is honest and ethical in its business practices; 92 percent believe that they make a difference at work; and 90 percent experience pride when they consider their accomplishments.

As has been the case in the past, this year’s 100 Best continue the tradition of con rming that great workplace practices—treating people well, sharing information and answering questions, and investing in employee’s professional development—all combine to contribute positively to the bottom-line. At the Best Companies, turnover is lower, recruiting is easier and employee morale is stronger than at other workplaces across the country. Over the long term, the publicly traded 100 Best Companies continue to outperform the S&P 500 and the Russell 3000.

Companies on this year’s list added more than 57,000 new full-time and 22,000 new part-time jobs during the last year and invested signi cantly in training opportunities for the people who took them.

Any company that is at least seven years old with more than 1,000 U.S. employees is eligible.

HIGHLIGHTS

Some of the categories rated for this report are of particular interest to LGBT employees and nonpro t organizations, since the rating is determined by company employees. Gay-friendly bene ts and policies are two such rating categories.

The following bene ts are evaluated in the survey: 

• 100% Health Care: Companies that pay 100 percent of an employee's health-care premium

• Onsite child care: Companies that provide an on-site child care center

• Telecommuting: Companies that allow employees to telecommute or work at home as a regular work arrangement (i.e., where employees telecommute or work from home at least 20 percent of their time)

• Job sharing: Companies that offer employees a job sharing program (e.g.two people share one job)

• Compressed workweek: Companies that offer employees compressed workweeks (e.g., work four 10-hour days and take Fridays off) on a year- round, regular basis.

• Fully paid sabbaticals: Companies that offer fully paid sabbaticals

• Onsite gym: Companies that have an on-site tness center

• Gym discounts: Companies that subsidize off-site tness center memberships

• Gay-friendly bene ts: Companies that offer domestic partner bene ts for same-sex couples (where permitted by law)

• Gay-friendly policy: Companies that have a written non-discrimination policy that includes sexual orientation

WHY THIS IS A GOOD RESOURCE

Of the 2009 Top 100 companies, 42 are rated in the HRC’s CEI and 31 of the 42 received a rating of 100 percent.

As we know from the CECP survey mentioned throughout this guide, employees are critical stakeholders in helping to determine a company’s giving strategy. In cross-referencing this report with the HRC CEI, we can get a bit of a sense for the climate for LGBT employees in these companies though recognize that it is not necessarily an exact snapshot. Companies also receiving strong CEI ratings may make good potential partners for LGBT nonpro t organizations.

Go to www.money.cnn.com/magazines/fortune/bestcompanies to view details on the 2009 Top 100 Best Companies to Work For.

A Guiding Glossary Terms from the landscape

As the landscape of corporate philanthropy evolves, so too does the terminology used to describe and de ne it. Changing corporate structures and “org charts,” unusual department names, and rapidly emerging disciplines all complicate the landscape and make it dif cult to navigate. Chapter 3: A Guiding Glossary highlights some of the more important terms to help nonpro t professionals, as well as corporate employees themselves, nd resources, developrelationships and create effective partnerships.

BUSINESS UNIT
A Business Unit—sometimes known as a Strategic Business Unit, Division, Af liate or Segment—is an operating structure that exists within an overall corporate entity. Most often associated with large, multi-national corporations, Business Units are often self-contained, separately managed organizations that have their own business strategies, objectives, brands and competitors that differ from that of the parent company.

Why This Is Important:
MANY POSSIBLE POINTS OF ENTRY. Business Units can be an important
point of entry, especially for smaller and/or local nonpro ts. Business Units are not necessarily located within a larger corporation’s headquarters or main campus, but instead might have a more local presence. Local organizations wanting to establish a partnership with a large corporation may nd that company has a Business Unit nearby that has an interest in partnering with local organizations.

CAUSE MARKETING
Cause Marketing—or Cause-Related Marketing—refers to a type of marketing where a company connects the marketing of a product or service to a cause and/or anonprofit. Cause marketing—sometimes the responsibility of the marketing organization, while other times the responsibility of individual employees embedded in the business—differs from Corporate Philanthropy or Corporate Giving, in part, because it is a marketing relationship with expenditures that are not generally tax-deductible.

Why This Is Important:
CREATING SOMETHING NEW FOR CONSUMERS TO CONSIDER. Cause Marketing has been around for decades, giving consumers the choice to support a cause through buying a product. Nonpro ts might consider working with a company to co-brand a product related to their cause, and share the revenue from its sale.

COMMUNICATIONS (EXTERNAL)
Most large organizations have a Communications department, while smaller ones might have specific personnel dedicated to coordinating external messaging. This department or employee may also be labeled Strategic Communications, Corporate Communications, Press, Press Relations, Public Relations or Media Relations. Common activities may include writing press releases, speaking at conferences, developing and executing events, and working with the press.

Why This Is Important:
MESSAGES FROM MANY PLACES. Not all organizations use the same terminology for their communications structure. But a communications strategy to external stakeholders and the media regarding a company’s philanthropy can be an important part of developing awareness of and support for a nonpro t partnership. That strategy should begin by understanding an organization’s communications structure and the roles and responsibilities of the personnel in it.

COMMUNICATIONS (INTERNAL)
Sometimes organizations separate communications responsibilities between external and internal messaging. People working in the Internal Communications department of an organization coordinate messages and announcements to employees.

Why This Is Important:
ENGAGE EMPLOYEES. Engaging a company’s employees and making sure they know about new partnerships, volunteer events, diversity initiatives or other social responsibility opportunities is important. Nonpro ts that build partnerships with companies should ask about ways to engage the Internal Communications team to make sure the message gets out.

CORPORATE PHILANTHROPY
Corporate Philanthropy or Corporate Giving is the act of corporations donating a portion of their pro ts or resources to various nonpro t organizations. The function of corporate giving can be handled directly by the corporation or through a company foundation. The most common resource that corporations donate is cash; however, corporations also donate the use of their corporate facilities; property (such as used computers, buildings or land); gifts of products, services and equipment; advertising support; or executive loans. Many corporations also have employee volunteer groups that donate their time. Corporations give to a wide variety of nonpro ts, which include education, the arts, human services, health, the environment, public bene t and many others.

Why This Is Important:
A VARIETY OF OPPORTUNITIES FOR RESOURCES. Corporate Philanthropy is a term that encompasses the many ways that a company provides resources to nonpro t organizations. Nonpro t organizations should not think about Corporate Philanthropy strictly as cash but as the wide variety of resources provided by a company that could bene t nonpro ts.


CORPORATE SOCIAL RESPONSIBILITY (CSR)
Sometimes known simply as Corporate Responsibility, Corporate Social Responsibility (CSR) is when a company tries to understand and embrace the impact it has on the world inside and outside its walls, including the environment, consumers, employees, communities, shareholders and other stakeholders. Other terms that companies sometimes use to describe aspects of their CSR work include Community Relations, Corporate Citizenship or Responsible Business. CSR might be managed by a sophisticated global organization, a cross-functional task force, or a single person—depending on the size, budget and commitment of the company.

Why This Is Important:
KNOW A COMPANY’S COMMITMENTS. CSR has gained attention in recent years as consumers, community groups, shareholders and other stakeholders have become more interested in companies acting and operating responsibly. Many companies now issue periodic CSR reports that summarize their commitments, strategies and long-term visions for improving their impact on the world around them. Sixty percent of business leaders worldwide said CSR is more important to their businesses now than it was a year ago, with only six percent saying it was less important. And 69 percent of leaders of private and public organizations worldwide expect pro-social initiatives to have a positive impact, and they are making their largest investment increases in this area among all the topics surveyed.2

DIVERSITY & INCLUSION (D&I)
Sometimes referred to simply as Diversity, Diversity & Inclusion (D&I) departments and personnel may drive a company’s commitment to diversity initiatives both inside and outside the organization, including the development and operation of Employee Resource Groups (ERGs). Some organizations have Chief Diversity Of cers, embed the function in the Human Resources (HR) department, and/or publish the details of their diversity commitments and policies on their corporate websites.

Why This Is Important:
DEVELOP A RELATIONSHIP WITH D&I. An organization with a commitment to diversity—through HR personnel, D&I departments, ERGs or publicly available diversity policies—may indicate that hiring and training a diverse workforce, creating diversity-related initiatives, or supporting diverse organizations are priorities. Nonpro ts may nd opportunities to develop speci c partnerships and nd resources in these and other diversity-related structures of a company.

PepsiCo and Parents, Families & Friends of Lesbians and Gays (PFLAG) Expanding Workplace Equality

ORGANIZATIONS

PEPSICO is a multinational food and beverage corporation headquartered in Purchase, NY, whose brands include Quaker Oats, Frito-Lay and Tropicana, among others. At the core of PepsiCo is Performance with Purpose— achieving business and nancial success while leaving a positive imprint on society. PepsiCo de nes its business success by being—and by being recognized as—a leader in sustainability. PepsiCo launched Performance with Purpose in 2003.

PARENTS, FAMILIES & FRIENDS OF LESBIANS AND GAYS (PFLAG) is a national

support, education and advocacy organization for the LGBT community and their families, friends and straight allies. Acting to create a society that is healthy and respectful of human diversity, PFLAG believes that change happens at the grassroots level in local communities. One of the organizations core programs, Straight for Equality, aims to equip straight allies with strategies that promote an open and inclusive workplace for the LGBT community.

THE CHALLENGE

Building a distinct, clear, broad LGBT strategy owned by, and activated through, key functions of PepsiCo, including Human Resources /Diversity; the Employee Resource Groups—EQUAL; and Philanthropy /PepsiCo Foundation.

Though most companies have diversity and inclusion statutes written into their corporate bylaws, there are too often limitations on how strongly such policies are enforced. Being openly LGBT in the workplace is still a problem in many areas of the country. When employees feel uncomfortable at work, there can be adverse affects on health and job satisfaction, and job performance is often diminished as well.

Recognizing the value of diversity and inclusiveness in the workplace, PepsiCo’s Performance with Purpose includes Diversity & Inclusion as an important component of the platform, with emphasis on fostering an open and safe space for all employees. (Each year since 2004, PepsiCo has achieved a perfect 100 score on Human Rights Campaign’s Corporate Equality Index.) To ensure this corporate value extended to its LGBT employees, PepsiCo’s employee resource group (ERG) EQUAL partnered with an organization that could provide a framework and training with actionable steps to advance LGBT inclusiveness as a mainstay of an equal workplace environment and culture.

THE APPROACH

PepsiCo and PFLAG came together after more than a year of partner and solution searching, spearheaded by PepsiCo’s Foundation, human resources division and employee resource group EQUAL. The corporate team held a series of roundtable meetings with preeminent LGBT groups. At the heart of these in- depth dialogues was the charge to identify the critical horizon issues in the LGBT space related to American workplaces and come up with practical programs and resources to address these challenges. The horizon issue for PepsiCo was how to de ne equal culture in business, particularly the nuances and intangible elements of corporate culture.

Out of this shared exploration, the PepsiCo Foundation developed a theory of change framework for workplace equality investment. The LGBT Horizon Plan emerged after 16 months of investigation, collaboration, learning and due diligence. A four-stage strategic plan was laid out, which hinged on gaining alignment and go-ahead from the board of directors of the PepsiCo Foundation for workplace equality as a plank within its diversity and inclusion funding priority. The green light was given. Philanthropic LGBT investment then became a component of PepsiCo’s overall presence and commitment as a responsible global corporation and citizen.

PEPSICO FOUNDATION STRATEGIES

1. Use philanthropy as a strategic tool to strengthen, integrate and catalyze

2. Fund issue-areas that otherwise aren’t funded that will drive signi cant advancement for all

3. Maximize investments with alliances, collaboration and engagement

4. Look at the long haul to drive sustained bene ts and success

The LGBT mission for the Foundation then was fundamentally to collaborate and fund organizations to design resources, toolkits and engagement programs that would enable companies in the United States—large, medium and small in size—to advance equality in their workplaces by focusing speci cally on Culture, Climate, Policy and Compliance.

Activating the mission meant giving companies the tools they needed to measure and evaluate their workplace climates and then to navigate through adjustments and changes in their corporate cultures and work environments.

Human Rights Campaign received the rst Foundation grant for the LGBT Workplace Climate to create:

The LGBT Inclusion Toolkit for Corporate America…Workplace Equality— creating safe and af rming environments for LGBT employees and their colleagues

Simultaneously, the PepsiCo Foundation paired PFLAG National with its employee resource group EQUAL across its three headquarter locations to anchor its second grant program: PFLAG’s Straight for Equality.

With more than 350 chapters and af liates across the United States, PFLAG stood out because of its ability to engage a large network of individuals on the local level. “They had a proven track record of effectively mobilizing their network. They know how to engage society one-by-one to vote, to pledge support and to take a stand for equality,” says Lyons. “They are also experts at empowering straight allies to stand up for LGBT equality. Allies are crucial and a pillar in the Foundation’s workplace equality strategy.”

The PepsiCo Foundation provided PFLAG with seed funding to develop a pilot concept of Straight for Equality and the following year funded a two-year grant for the creation and rollout of the full Straight for Equality program with an emphasis on their workplace training program as well as the development of additional ally-building modules.

Leveraging more than 35 years of experience transforming opinions and attitudes of the LGBT community, PFLAG’s Straight for Equality program provides training seminars, publications as well as online tools and resources that educate straight peers on the importance of being allies at work and in their communities. A key component of the program encourages straight colleagues to sign a pledge to speak openly about their status as a straight ally and proactively speak out against anti-LGBT attitudes and comments in the workplace.

PepsiCo immediately recognized Straight for Equality as a building block and lever to secure LGBT equality in businesses nationwide. Working with staff from PFLAG National, PepsiCo developed a partnership whereby the company would offer a multi-year grant for PFLAG to expand its workplace outreach. The grant served to further development, design and implementation of Straight for Equality by providing a more solid programmatic infrastructure, a detailed website equipped with user-friendly tools and resources, and grassroots support and local resources that could be activated and accessed through the 350-plus PFLAG chapters nationwide. PepsiCo fully believed in Straight for Equality and recognized that its value lies in its ability to bring a new perspective to LGBT diversity training in the workforce that focuses on climate change rather than policy change and provides targeted training as well as a connection for businesses to community-based resources through PFLAG’s membership network.

build Straight for Equality. However, PepsiCo’s contribution did not end there. By promoting Straight for Equality and its workplace training programs throughout its own company, PepsiCo was able to generate interest in the learning program and bring Straight for Equality training to work sites nationwide. While many training sessions took place in more corporate environments in the company, PepsiCo also brought Straight for Equality to line workers and staff who generally have less access to diversity trainings. Notably, Frito Lay (a PepsiCo division) in San Antonio, TX, brought PFLAG staff in to train its entire plant. Other smaller sites leveraged the online training services to bring Straight for Equality to its staff, who might otherwise not have access to the training.

Behind the scenes, PFLAG and PepsiCo worked together to develop strategies to ensure successful implementation of the program within the company. Beginning at the PepsiCo headquarters in New York, PFLAG representatives provided thought leadership training to senior executives, covering topics including workplace sensitivity and crisis management. (PepsiCo has been the target of numerous boycotts regarding their LGBT-inclusive values.).

Outside of PepsiCo, PFLAG has been able to dramatically expand its Straight for Equality outreach in workplaces across the country. By the end of 2009, Straight for Equality will have been offered in more than 35 major U.S. corporations, with the vast majority of these trainings featuring local PFLAG chapter members working with National staff, ensuring lasting community connections for companies long after the training has ended. More than 3,500 people have been touched by these trainings and demand continues to be strong.

Additionally, PepsiCo’s support has enabled PFLAG to distribute more than 40,000 copies of its rst Straight for Equality publication: The Guide to Being a Straight Ally. The Straight for Equality team also used a portion of its PepsiCo funding to support the development and publication of a second book, Straight for Equality in Healthcare, which will have a companion training program available in 2010. Finally, research and development for the next Straight for Equality module, which will focus on faith communities, is in the works.

The partnership between PepsiCo and PFLAG continues to grow, with PepsiCo employees marching alongside PFLAG in parades; a senior PepsiCo executive has also joined PFLAG’s Board of Directors.

TIP FOR CORPORATE ERGS—Your voice is important. Employees’ ideas can help strengthen the design of a company’s giving program. Decide on two or three organizations you think would be an ideal match for your company, draw up a proposal that aligns their missions with your company’s values and goals, and present it to your Philanthropy Of cer.

The Landscape - "Evolution of Corporate Philanthropy"

A CHANGING SOCIAL CONTRACT

The corporate world has always had a contract with society, but the dynamic of that relationship is rapidly changing. As recently as the 1980s, companies believed that by making cash donations to hometown charities, they were administering effective philanthropy that would help ful ll their social contracts. Today, society’s expectations have changed dramatically.

Consumers now have more ability to put pressure on companies to contribute to the public good. Shareholders are exerting pressure to increase companies social investment. And the news media, employees, community activists and nonpro t organizations are all increasing attention on what companies give and how they give it. All of these groups can in uence, and may even rede ne, the social contract and what it means to a company to ful ll or exceed it.

–67% of US consumers continue to believe “it is important to purchase products with social and environmental bene ts.”2

–51% say they are “willing to pay more” for those kinds of products.3

“Fifteen years ago, responsible shareholders knocked on the doors of corporate America and asked companies to add no discrimination on sexual orientation to

their human resources policies,” says Timothy Smith, senior vice president of Boston-based Walden Asset Management and chair of the board of the Social Investment Forum. “Today, 99 of the Fortune 100 companies have included this in their policies.

So where does this lead us? CECP leaders say a company’s contract with society is not an obligation but a source for competitive advantage and a powerful opportunity to attract and retain talent and ensure the health of their markets over the long term.5 With this in mind, companies are now focused on the development of sophisticated, holistic approaches to their corporate philanthropy.

A MOVE TOWARD STRATEGIC CORPORATE PHILANTHROPY

–84% of corporate executives believe that society expects businesses to take a more active role in environmental, social and political issues than it did ve years ago. Corporate philanthropy is one effective way to meet these new expectations.

How does the current economic climate impact corporate giving?

Historically, corporate philanthropy is most affected by Gross Domestic Product (GDP), pro ts and changes in top marginal tax brackets. According to Giving USA, corporate philanthropy in 2008, including both nancial and in-kind donations, accounted for ve percent of all charitable giving in the United States in 2008, about $14.5 billion.

Though this gure is down from $15 billion in 2007, corporate philanthropy has withstood what some are calling the “Great Recession” in relatively good condition, considering corporate pro ts were down 16 percent during the same period. One reason why corporate giving did not decline as much as corporate pro ts could be the rise in in-kind donations. 2008 saw a marked trend toward increased in-kind giving, suggesting many companies want to maintain their support for the nonpro t sector through more creative ways that may not involve cash.

Looking ahead, forecasts for 2010 indicate that 52 percent of corporations and 47 percent of corporate foundations are reporting declines in their giving budgets.7

Adding complexity and pressure to the corporate philanthropy landscape are consumers, many of whom have become savvier about the goods and services they purchase. They are asking, and in many cases requiring, more authenticity, commitment and transparency from companies regarding how their businesses impact people and the environment. Strategic corporate philanthropy can offer signi cant competitive advantages to companies trying to build relationships with consumers and be heard over the din of negative news.

By now, you might be asking what’s the good news here?

In the past, much of corporate philanthropy was done without realizing the strategic value it provided. Recent re-evaluations from corporate givers provide a powerful impetus to leverage change. The long-term outcomes will likely be more strategic and deliberate corporate philanthropy, improving outcomes for both the corporation and the community.

CREATING WIN-WIN SCENARIOS

Giving back to the community can and should create a win-win scenario for businesses and the public. From boosting employee job skills, opening new markets, and heightening brand recognition, business and society both stand to bene t greatly if companies can demonstrate programmatic effectiveness, scal accountability, and good stewardship in their philanthropic contributions.

While large corporations typically have staff dedicated to philanthropy with structure and parameters built in, giving at small companies tends to be more grassroots. Small and privately held companies can utilize unique ways to give, such as putting their companies in a charitable trust or donating company stock. But, businesses of any size can reap the bene ts of social investment when communities support socially responsible businesses in turn.

Strategic philanthropy helps the company meet its mission of nourishing people and ideas, and strengthens ties with its employees. Giving back to the community matters to employees and, therefore, helps to attract and retain good people. Top CEOs recognize that prospective employees are highly in uenced by corporate culture, and philanthropy is an integral component of a desirable work environment. College graduates frequently have long records of community service and therefore seek employers that support their interest in community engagement.

A NEED TO MONITOR PHILANTHROPIC PROGRAMS

“We treat our philanthropic foundation as a business unit… We say: how much did you disburse, what is your penetration, what are your measurements, how are you communicating, what’s your return on investment?”

—Ivan Seidenberg, Chairman and CEO, Verizon Communications8

Getting corporate philanthropy right is challenging. Business leaders recognize that in order to be effective, their philanthropy programs should be actively monitored, measured and communicated. Consumers expect transparency, and shareholders expect speci city about the business value of corporate philanthropy.

Managing corporate philanthropy similar to other key business disciplines, with clear objectives, established metrics and reporting structures to senior management, re ects best practices and helps ensure the stability of these programs, especially in periods of company change and volatility.

Among shareholders who rate a company’s philanthropy favorably, 78% say they will continue to invest in the company.

A NEW WAY OF DOING BUSINESS

When businesses think of corporate philanthropy as social investing, not charity, they become more alert to possible inef ciencies. Due diligence with potential nonpro partnerships ensures that every dollar is spent wisely. Collaborating with other companies on philanthropic initiatives provides for even greater impact. Collectively, businesses can move the needle on important social issues far more than any individual company.

When companies adopt the approach of social investment to up-level their competitive context—using their charitable efforts to improve the quality of the business environments in the locations they operate—they align social and economic goals. They improve their long-term business prospects and direct their philanthropic activities to areas where they can be far more effective.

NO TIME LIKE THE PRESENT

“Typically, in a bad market, companies spend less money on marketing,” says Philip Nourie, President of Park Lane Communications in New York City. “But in this instance, there is a great opportunity for companies to take a strategic approach to how they market their services and their track record. By cutting philanthropy in a time of greater community need, companies may miss an opportunity to communicate their messages and reinforce their brands.”10

Governments at the local, state and federal level have fewer dollars available to address the most pressing problems within communities. Companies have an opportunity to ll the void, make investments in their communities and leave lasting legacies. “The best corporate philanthropy is about passion,” says Nourie, “and consumers and the public are drawn to a company that has a passion for something.”

Nourie recommends a few tips for successfully protecting a company’s philanthropic investment:

—Don’t consider philanthropy solely a marketing expense. Consider it an operations expense that re ects human resources and nancial objectives as well.

—Increase payout in down markets, even if pretax pro ts will be lower. The impact of a company’s giving will be noticed more during dif cult times.

—Retool the philanthropic construct. Is it nancially based, a combination of goods and services or all three? Where is the greater need, hence opportunity, for a corporate presence and response to the needs of targeted constituencies?

—Clarify expectations with nonpro t partners. Ensure that there is agreement on the expected outcomes of contributions. Build an evaluation component into the giving strategy to measure the investment over a reasonable time period and determine whether the company’s philanthropic commitment was met with stated goals and objectives.

—Be patient. Successful philanthropy is often a learning process, in any market. Patience, continuity of involvement and open communication are important criteria for success. This is even truer in a troubled economy where trust and good intentions will need to be earned, not assumed.

—Leverage opportunities. With fewer dollars it may be advantageous to all parties to explore how to partner with other corporate entities or executives.