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The 12 rules for creating successful business-charity partnerships

Monday, October 24, 2005

The 12 rules for creating successful business-charity partnerships

Creating partnerships can be a precarious business. Many fall at the first hurdle because of a lack of mutual trust, respect and loyalty, or because of a poorly defined cause focus and incompatible objectives. Partnerships can fail because a charity feels that they own a cause, or a business is unprepared for the changes within the company that a charity partnership can lead to. Harmonious management styles between the partners are vital, as is due diligence, transparency and the setting up of robust success measures. Follow these 12 tips to get the most from a business-charity partnership.

1. Accountability - The charity must be able to maintain clear accountability to its own key trustees and other stakeholders, and retain independence from the business partner. At the same time, the business should not try to become the charity.

2. Authenticity - A company must be serious about driving change in its own business, within the sector or across the business community as a whole.

3. Alignment to core purpose or product - There must be an obvious link between the company and the cause.

4. Authority - Individual participants must have sufficient authority to make critical decisions on a day-to-day basis.

5. Benefits - There must be measurable social benefit; that is, the partnership must make a real difference to people's lives. Organizational benefits for each partner must also be understood.

6. Communication - There must be the potential for visibility and story telling.

7. Engagement of employees and customers - There must be opportunities for employee involvement and benefit for customers.

8. Equality - Both partners need to step up to the table as equal partners and be recognized as such throughout the relationship.

9. Issues management - There must be agreement to work together to resolve disputes or conflicts in a constructive and respectful way. Decide up front what would render the partnership untenable and agree a process for formal notice of termination of the contract.

10. Measurement - Both partners must see a tangible return on their investment and understand each other's definitions of success. Appropriate mechanisms to monitor progress must be agreed up front.

11. Rules of engagement - These need to be clearly agreed at the outset.

12. Trust - Both partners must trust each other implicitly and understand each other's needs and motivations for working together.

Adapted from "The new world of company giving" in the current issue of Corporate Responsibility Management.