Strategic corporate partnerships: why they’re more important than ever

For this edition’s special focus on corporate partnerships, we ask fundraising experts from across Europe why it’s ever more important for nonprofits to be looking at co-creating strategic partnerships with brands.

Corporate partnerships have always had immense value for nonprofits. But while traditionally these partnerships have been (and often still are) centred around donations, increasingly nonprofits, NGOs, and commercial organisations alike are realising the greater value of longer-term strategic partnerships.

Working together on a set of agreed aims, the nonprofit receives funding, volunteers, skills and expertise, enabling them to go further faster towards achieving their objectives.

Francisco Fernández, Fundación Gmp

Francisco Fernández, director at Spain’s Fundación Gmp comments:

“Unfortunately, social needs are greater than the resources available to nonprofit organizations, and for this reason, corporate partnerships can be a very interesting ally to reduce these needs. Moreover, we live in a time when no organization can succeed on its own. For our foundation, corporate partnerships are essential because they allow us to expand our impact and reach more people in need.

“For example, since 2014, at Fundación Gmp we have maintained a collaboration with Plena Inclusión Madrid, which has allowed us to provide scholarships for early care treatments to more than 500 families with children with intellectual disabilities or developmental disorders. This collaboration has not only increased our support capacity but also strengthened our strategies for inclusion and equity.”

Brands seeking to do good

Now too, there is a real opportunity for nonprofits to co-create more meaningful corporate partnerships as growing numbers of brands seek to become purpose driven and make a positive impact of their own. It’s a move that is evident in the rise of B Corps, CSR and ESG, and as companies seek to align with the Sustainable Development Goals (SDGs) and reporting demands such as the EU’s Corporate Sustainability Reporting Directive (CSRD).

Srđan Janjušić, Caritas Austria

Introduced in January 2023, the CSRD for example mandates that around 15,000 companies in the EU (phased in from 2025 to 2027 for fiscal years 2024 to 2026) must report transparently on their sustainability performance. For NGOs, this opens new avenues for collaboration says Srđan Janjušić, head of corporate partnerships and philanthropy at Caritas Austria:

“Businesses, under pressure to demonstrate significant advancements in their sustainability efforts, will seek partners that can contribute tangible, positive impacts. NGOs, with their deep expertise in social and environmental issues, become vital allies in helping companies meet their CSRD obligations.

Drivers for more strategic partnership

This, he says, fosters a move away from traditional donation-seeking towards forming strategic, mutually beneficial partnerships, continuing:

“NGOs can offer consulting and support for achieving SDGs, guiding companies through the implementation process and addressing ESG KPI gaps along their value chains. 

“These collaborations can lead to integrated sustainability projects, where NGOs provide the necessary guidance, implementation support, and credible reporting, enhancing corporate sustainability narratives. The CSRD not only incentivizes corporations to engage more deeply with NGOs but also empowers NGOs to expand their influence and impact through strategic, goal-oriented partnerships.”

Alongside this is the need to meet a growing expectation from consumers that companies will be directing some of their profits into good causes, and ensuring their operations and products are environmentally sound.

Gunn Inger Røkke Ruud, Salvation Army, Norway, Iceland & the Faroe Islands

Increasingly then, the benefits of partnering with a nonprofit are just as apparent for the commercial partner as the other way around. Gunn Inger Røkke Ruud, strategic adviser corporate partnerships, Salvation Army Norway, Iceland & the Faroe Islands comments:

“In Norway, seven out of 10 people think the corporate world should do more to contribute to sustainable development and there’s an expectation that brands should have a focus on their Corporate Social Responsibility and their social impact. That might be their initial reason to start looking to partner with NGOs but after a while, when it’s well-managed, they start seeing that it’s really good for business. It’s good internally and for retention because people feel proud to be a partner that’s doing good, and it’s beneficial for building their own brand so it’s profitable for them as well.”

An opportunity for nonprofits & NGOs

Clearly, this move to become more purpose-driven is a shift in strategy that nonprofits need to be aware of and, where relevant, respond to. For brands seeking to do good and moving into areas they may not have existing expertise or experience in, partnerships with nonprofits that specialise in these areas can be invaluable. By seeking out and nurturing strategic partnerships, nonprofits can ensure the two work together to achieve the greatest impact, whilst also ensuring they remain involved where they are best qualified to help.

Rolf Bangsgaard, Raform

Rolf Bangsgaard, partner & adviser at Denmark’s Raform says:

“This big shift in corporate strategies means NGOs need to understand how they can help a company create value while at the same time solving a problem, or it will become more and more difficult for them to make a difference in the areas they’re working in.

“Companies need to understand how to integrate doing good into their core, but often don’t really know how to make that part of their value chain or integrate that into their business. So there’s a huge opportunity for NGOs to help companies solve real problems, if they’re ready and prepared, and if they understand the corporate challenge­ – that companies need projects, ideas and causes they can work with but don’t necessarily know what they are or how to do it.”

But of course, while many organisations will seek nonprofits to partner with, they won’t all be a good fit. Nonprofits must ensure then – as much as possible – that they make a good match, and that any partnership is sustainable with mutual value. For useful insights on how to achieve this, read our top tips piece.