The business world is changing its strategies and expectations for corporate giving, a shift that is causing heartburn in the nonprofit sector, an article says.
Traditional corporate philanthropists made donations to needy causes based on the needs of people and groups in the community, says a new article in the Stanford Social Innovation Review.
“Philanthropy, Inc.,” by Keith Epstein, says many corporations now are expecting a return on their charitable investments and want their donations to complement their business objectives.
By combining business objectives and corporate giving, companies can bolster sales, get employees more involved and gain new customers, the article says.
This new strategy, sometimes referred to as strategic philanthropy, cause-marketing or value-led marketing, means that nonprofits must become more strategic themselves, the article says, making sure their cause are truly worthwhile and developing assets that can lure interested corporate partners.