Bridging the Gap: Why Companies Struggle to Engage with Charities

In recent years, the commercial sector has become increasingly aware of the importance of social impact and the need to improve their Environmental, Social, and Governance (ESG) credentials. Despite this growing awareness, many companies still struggle to effectively engage with charitable and non-profit organisations. This disconnect presents a significant challenge for both sectors, as well as a missed opportunity for meaningful collaboration and positive change.

Understanding Corporate-Charity Partnerships

Corporate-charity partnerships have become increasingly popular in recent years, with many businesses recognising the benefits of partnering with charitable organisations. These partnerships can bring numerous benefits to both parties involved, including increased brand awareness, improved reputation, and access to new audiences.

Benefits of Partnerships for Both Parties

For charities, corporate partnerships can provide a significant source of funding, expertise, and resources. Charities can benefit from the business’s marketing and communication channels, which can help raise awareness about their cause and attract new supporters. Additionally, corporate partnerships can provide charities with access to new skills and expertise, such as marketing, finance, and project management.

For businesses, partnering with a charity can enhance their reputation and demonstrate their commitment to social responsibility. This can lead to increased customer loyalty, improved brand image, and a competitive edge in the market. Moreover, corporate-charity partnerships can provide businesses with opportunities for employee engagement, team-building, and skills development.

Challenges in Establishing Effective Partnerships

Despite the benefits, establishing effective corporate-charity partnerships can be challenging. One of the main challenges is finding a charity that aligns with the business’s values and goals. Charities must also ensure that they are not compromising their mission or values by partnering with a business.

Another challenge is managing the partnership effectively. This requires clear communication, defined roles and responsibilities, and regular evaluation and monitoring. Both parties must also be aware of the potential risks and challenges associated with the partnership, such as reputational damage or conflicts of interest.

The Role of Charities in Society

Charities play a vital role in society, providing essential services and support to vulnerable individuals and communities. They also contribute to the economy, employing millions of people and generating billions of pounds in revenue. Charities are also a key driver of social change, advocating for policies and practices that promote equality, justice, and human rights.

In the UK, charities such as the Royal National Lifeboat Institution, the National Trust, and the Royal Society for the Prevention of Cruelty to Animals (RSPCA) are well-established and respected organisations that provide critical services and support to individuals and communities. These charities rely on donations, fundraising, and corporate partnerships to continue their work. The larger charities are able to afford marketing and media to promote themselves, but the vast number of other charities are too small and under-resourced to make this a priority.

The Visibility Challenge

Perhaps the most significant obstacle preventing corporates from engaging with charities is a lack of awareness of which organisations they could be helping. Companies often overlook the most impactful and relevant charities due to a lack of visibility. This is particularly true for smaller, grassroots charities that are focused on service delivery and unable to dedicate scarce resources to marketing and self-promotion.

The Scale of the Problem

With over 195,000 registered charities across the whole of the UK, each focused on making specific contributions to society, it’s no wonder that companies find it challenging to navigate this vast landscape. These charities operate at varying scales, with difficult-to-quantify evidence supporting their impact. This complexity makes it hard for commercial organisations to identify popular charities for their CSR initiatives.

Geographic Limitations

Typically, location is an essential criterion for companies looking to engage with local charities in England, Wales, Northern Ireland or Scotland. However, available data is available in separate sources and often lacks geographic search facilities, making finding charities operating in specific areas challenging. This information gap can lead to missed opportunities for both businesses and charities that could benefit from local partnerships.

Identifying the Right Charity Partner

With so many charities to choose from, identifying the right charity partner can be a daunting task. Here are some tips to help businesses find the right charity partner:

Researching Charities and Their Missions

Before selecting a charity partner, businesses should research the charity’s mission, values, and goals. This can be done by visiting the charity’s website, reviewing their annual reports, and speaking with their staff and volunteers. Businesses should also evaluate the charity’s impact, efficiency, and transparency to ensure that they are making a meaningful difference.

Businesses should also consider the charity’s reputation, credibility, and accountability. This can be done by checking the charity’s registration with the Charity Commission, reviewing their financial reports, and evaluating their governance and leadership.

By taking the time to research and evaluate potential charity partners, businesses can ensure that they are partnering with a reputable and effective organisation that aligns with their values and goals.

The Need for Better Tools

To address these challenges, there is a growing need for comprehensive ‘charity finder’ resources that the commercial sector can use to research and identify a shortlist of charitable organisations they might engage with. A comprehensive charity finder could include a dedicated page for each charity to facilitate better engagement. Such tools could revolutionise how companies approach their corporate social responsibility efforts and charity partnerships.

Benefits of a Comprehensive Charity Finder to Improve Fundraising

1. Improved Matching: A robust charity finder would allow companies to quickly identify charities that align with their values, goals, and geographic preferences.

2. Increased Efficiency: By streamlining the search process with multiple dedicated pages, businesses can save time and resources typically spent on researching potential charity partners.

3. Enhanced Due Diligence: Access to comprehensive, up-to-date information would enable companies to perform better due diligence on potential charity partners.

4. Support for Smaller Charities: A well-designed charity finder could help level the playing field, giving smaller, less visible charities a chance to connect with corporate partners.

5. Data-Driven Decision Making: With access to more detailed information, companies can make more informed decisions about their charitable engagements.

Introducing SoGood Partners: A Solution in the Making

We’re excited to announce that SoGood Partners has been working for over a year to create a reliable back-end data store that pulls information from multiple sources. This innovative platform cleans and attributes the data to add significant value to what is commonly available in the public domain. Additionally, the platform helps charities fundraise more effectively by providing better data and tools.

The Future of Charity-Corporate Collaboration

The team at SoGood is now turning their efforts to developing interfaces designed to meet the needs of specific use cases – starting with promoting better collaboration between the commercial and charity sectors across the UK. This platform aims to address many of the challenges discussed earlier, providing a powerful tool for companies looking to enhance their social impact.

Overcoming Engagement Barriers

While improved visibility is crucial, it’s not the only factor preventing effective engagement between companies and charities. Other challenges include:

Misaligned Expectations

There’s often a gap in expectations between corporate volunteers and the charities they engage with. Companies may offer short-term help when charities need long-term support, or they may not understand the true needs of the organisations they’re trying to assist.

Resource Constraints and Volunteers

Many charities struggle with limited resources, making it difficult to manage corporate partnerships effectively. This can lead to missed opportunities or partnerships that don’t reach their full potential.

Lack of Understanding

Both sectors need to work harder to understand each other’s needs, motivations, and operational realities. Without this mutual understanding, it’s challenging to develop truly impactful partnerships.

The Way Forward

To improve engagement between the commercial and charity sectors, we need a multi-faceted approach:

1. Better Data and Tools: Platforms like the one being developed by SoGood Partners will play a crucial role in connecting businesses with suitable charity partners. Companies can use innovative strategies to raise money for their charity partners through events like polar plunges, dance marathons, and head-shaving fundraisers.

2. Education and Training: Both sectors need to invest in understanding each other better. This could involve workshops, exchange programs, or dedicated liaison roles.

3. Long-term Thinking: Companies should focus on developing long-term, strategic partnerships with charities rather than one-off engagements.

4. Flexible Support: Businesses should be open to providing various forms of support, including unrestricted funding, which is often more valuable to charities than specific project funding.

5. Impact Measurement: Developing better ways to measure and communicate the impact of corporate-charity partnerships can help justify and expand these initiatives.

In Summary

As the commercial sector increasingly recognises the importance of social impact and ESG credentials, the need for effective engagement with the charity sector has never been greater. Effective fundraising in charity-corporate partnerships is crucial to ensure that these collaborations can drive meaningful change. By addressing the visibility challenge through innovative tools like SoGood Partners’ platform and by working to overcome other engagement barriers, we can create a future where businesses and charities work together more effectively to drive positive change in our communities.

The path forward requires commitment, understanding, and the right tools. With these elements in place, we can bridge the gap between the commercial and charity sectors, unlocking new possibilities for social impact and creating a more sustainable, equitable future for all.