Social Services Agencies and Other Nonprofits Struggle to Build Relationships with New Corporate Partners, but Deeper Levels of

  Social Services Agencies and Other Nonprofits Struggle to Build
  Relationships with New Corporate Partners, but Deeper Levels of Engagement
  Extend Beyond Hard Dollars

Breaking the ice is biggest challenge in pursuit of partners and sponsors
along with increased competition for funding sources, according to a survey of
more than 100 Massachusetts nonprofits. More companies seeking a hands-on role
in charitable missions and increased accountability. Providers of human
services struggle most for visibility and corporate attention.

Business Wire

BOSTON -- October 29, 2012

Making the first key outreach to potential corporate partners is the biggest
challenge for nonprofits in Massachusetts, according to a survey released
jointly today by the Massachusetts Nonprofit Network and Natixis Global Asset
Management (NGAM), one of the 15 largest asset managers in the world.^1

The challenge is particularly daunting for nonprofit human service agencies,
which need creative ways to stand out amidst competition from larger arts and
cultural organizations.

More than half of the 103 Massachusetts nonprofits surveyed said they were
“least effective” in making “initial contact” with potential business partners
and identified that as the most difficult part of getting support from the
business community.

“Breaking the ice is hard in any new relationship, and it’s particularly
challenging for human service and other nonprofits pursuing corporate partners
in an increasingly competitive landscape,” said John Hailer, president and
chief executive officer of NGAM – The Americas and Asia. “Nonprofits are an
essential part of our community fabric, delivering services that provide a
safety net and help fuel our economy. Those that provide critical human
services are too easily overshadowed by large cultural organizations and
brand-name arts and humanities nonprofits.”

Even after contact is made, demonstrating the value proposition for a
potential corporate partnership is daunting. More than 35 percent of survey
respondents rated “identifying how businesses will benefit from partnering
with my organization” as one of the things at which they are least effective.
Compounding the challenge is fierce competition from others in the nonprofit
sector, including well-known arts and cultural organizations. In fact, nearly
three-quarters (almost 74 percent) of organizations surveyed believe it is
more difficult for nonprofits that focus on core social services to gain
corporate support for their organization.

“The private sector can be a powerful partner to nonprofits and, as the survey
illustrates, it is often under-leveraged by human service organizations,” said
Rick Jakious, CEO of the Massachusetts

Nonprofit Network. “Human service organizations can benefit from the time,
talent and treasure of the private sector. It is critical, however, that they
understand that strong corporate engagement must be based on real partnership,
not just checkbook philanthropy.”

Several of those surveyed said their most effective partnerships were with
corporations that took time to learn about the organization they were
supporting and who understood the significance of its mission. Many also
reported that corporations are increasingly expressing a desire to take an
active role in the work of their nonprofit partners. Other organizations said
businesses are demanding “accountability” on the part of the non-profits and
evidence of positive outcomes that result from their work.

“A plaque at a homeless shelter doesn’t reach the same number of eyes as a
sponsorship ad at a musical program or a fundraising gala,” Hailer said. “But
the relationship created offers a different – and often deeper – kind of
experience. Both parties benefit from that.”

Jakious observed that while “marketing and brand visibility” are key metrics
by which corporate funders evaluate potential partnerships, there are other
measures which play better to the strengths of human service organizations.
Chief among them: the opportunities a partnership provides to engage employees
of the company.

“Employee engagement, when executed well, is a win-win for the nonprofit and
its partner. And it can come in the form of one-day or ongoing volunteer
opportunities,” Jakious said. “Increasingly, employers are seeking out
skill-based volunteer opportunities. This can be a source of crucial expertise
to a nonprofit, such as legal support, financial guidance, marketing expertise
and so forth.”

Among the key findings of the NGAM survey:

  *The competition among nonprofits for corporate financial support remains
    fierce. Just over half (54 percent) of organizations surveyed said
    corporate funding has either held steady or increased in the past year,
    but a significant number (40 percent) said their corporate funding has
    declined.
  *Building new relationships with potential corporate partners isn’t easy.
    Nonprofits usually know whom they would like to seek out for support, but
    half (50.5 percent) said making initial contact with corporations is the
    hardest part about seeking support from the business community.
  *The current climate of economic uncertainty makes maintaining corporate
    sources of financial support nearly as difficult as securing them in the
    first place. More than a third (40 percent) of organizations surveyed saw
    their funding decrease over the last year. However, in spite of the
    present economic situation, the majority of organizations (54 percent)
    reported that their funding either held steady or increased. Specifically,
    just under a quarter (24 percent) reported that they saw no change in
    corporate funding, while nearly a third (30 percent) saw at least a slight
    increase.
  *A huge majority (86 percent) of nonprofits surveyed receive some support
    from financial services, banking, and insurance companies. This makes the
    financial services sector far and away the most frequent source of support
    for the organizations surveyed.
  *The next most common was the healthcare sector (47 percent), which was
    followed by the construction and development industry (35 percent).

Methodology

The NGAM corporate philanthropy survey reviewed the online responses of 103
nonprofit organizations from across Massachusetts. Participants responded to
an online survey of 20 questions – both multiple-choice and open-ended.
Results were calculated and then reviewed by NGAM and the Massachusetts
Nonprofit Network.

About Natixis Global Asset Management, S.A.

Natixis Global Asset Management, S.A. is one of the 15 largest asset managers
in the world based on assets under management.^1 Its affiliated asset
management companies provide investment products that seek to enhance and
protect the wealth and retirement assets of both institutional and individual
investor clients. Its proprietary distribution network helps package and
deliver its affiliates’ products around the world. Natixis Global Asset
Management, S.A. brings together the expertise of multiple specialized
investment managers based in Europe, the United States and Asia to offer a
wide spectrum of equity, fixed-income and alternative investment strategies.

Headquartered in Paris and Boston, Natixis Global Asset Management, S.A. has
assets under management totaling $711 billion (€560 billion) as of June 30,
2012.^2 Natixis Global Asset Management, S.A. is part of Natixis. Listed on
the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest
banking group in France. Natixis Global Asset Management, S.A.’s affiliated
investment management firms and distribution and service groups include:
Absolute Asia Asset Management; AEW Capital Management; AEW Europe;
AlphaSimplex Group; Aurora Investment Management; Capital Growth Management;
Caspian Private Equity; Darius Capital Partners; Gateway Investment Advisers;
H2O Asset Management; Hansberger Global Investors; Harris Associates; IDFC
Asset Management Company; Loomis, Sayles & Company; Natixis Asset Management;
Natixis Multimanager; Ossiam; Reich & Tang Asset Management; Snyder Capital
Management; and Vaughan Nelson Investment Management.

About the Natixis Global Asset Management Corporate Philanthropy Program

Natixis Global Asset Management has a long history of giving, and the company
has developed an innovative and strategic partnership between company
executives and its nonprofit partners that focuses on increased collaboration
and establishing deeper relationships. This unique model has produced better
results for the company and its charitable partners such as creating new ways
to work together, increased access to resources for the agencies, a more
strategic approach to planning and goals, and an increased level of
collaboration and engagement from Natixis employees.

The 2012 Natixis charitable partners are eight social services organizations
that collectively improve the lives of hundreds of thousands of individuals
and families each year, and play a critical role in battling a number of
social issues, including homelessness, hunger and unemployment. They are
HopeFound, Boston Medical Center, Community Work Services, Elizabeth Stone
House, Home for Little Wanderers, St. Francis House, Ellis Memorial and Strong
Women, Strong Girls.

About Massachusetts Nonprofit Network

Nonprofit organizations make tremendous contributions to the quality of life
in Massachusetts by providing assistance to communities and individuals. In
2007, Massachusetts Nonprofit Network was launched as a statewide organization
to help strengthen these nonprofits so they can better carry out their
missions.

MNN has three main goals: promote the image of the nonprofit sector as
efficient, effective, and essential; strengthen the nonprofit sector by
engaging members in advocacy and affecting public policy initiatives; and
build capacity in nonprofits across the state.

MNN represents eight sectors of nonprofit work, which are arts & culture,
education and youth, environment, health, housing & community development,
human rights, human services, and philanthropy.

^1 Cerulli Quantitative Update: Global Markets 2012 ranked Natixis Global
Asset Management, S.A. as the 13th largest asset manager in the world based on
assets under management as of December 31, 2011.

^2 Assets under management (AUM) may include assets for which non-regulatory
AUM services are provided. Non-regulatory AUM includes assets which do not
fall within the SEC’s definition of ‘regulatory AUM’ in Form ADV, Part 1.

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Contact:

NATIXIS GLOBAL ASSET MANAGEMENT
David Snowden, 617-449-2509
david.snowden@ngam.natixis.com
or
O’NEILL AND ASSOCIATES
Laura Wareck, 617-646-1037
lwareck@oneillandassoc.com
 
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