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Olivia Richards, Pareto Fundraising, 133 Dowling Street
Woolloomoolloo 2011
New South Wales  Australia
Tel 02 9380 8414
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Pareto Talk: Corporate Fundraising

Pareto Talk

Corporate Fundraising – Beneficial to charities or just making corporate look good? 

By Dominique Antarakis

P1010157.JPGThey arrived armed with props – a big stick, a pink wig, a bar of soap, a bottle of water – to argue the proposition Corporate fundraising – beneficial to charities or just making corporates look good?

First in to bat was Mei Ling Ho, from United Way. Ho maintained that not only is the corporate sector responsible for a considerable slice of the fundraising pie, accounting for $3.3 billion out of the $11 billion raised each year, “the opportunities are huge, and charities need to capitalise”.

“There’s enormous growth potential, and if you look at the fact that 30% of companies are not engaged, if we can demonstrate how others are benefiting, we can convince them to engage as well,” she said.

The way to do that, she said, was to “encourage corporates to look good by promoting Corporate Social ‘Opportunity’ rather than ‘Responsibility’”, based on the understanding that if corporates get into it for the opportunity rather than because they feel they have to, they will be in it for the long term.

She acknowledged, though, that strategic philanthropy requires a corporation finding an organisation to support that is a good fit. “And the relationship needs to work for the charity as well – and if it’s not working, we need to improve it”.

“Don’t bother” was the message from the opposition team on the night, made up of Julijana Trifunovic from Jeans for Genes, and John Burns, Médecins Sans Frontières Australia.

“Charities who engage with corporates are living in fantasy land,” claimed Trifunovic. “We’re making corporates look good, but [on their side] it’s an act, a performance. CSR, corporate volunteering – they’ll say, we can’t give you any money, but 30 people from Finance can come over on July 20. What’s the use of people volunteering in the office on a date that suits them – give us their salaries instead!”

Trifunovic told the audience that corporates use the connection with charities to shamelessly promote their own products and make money. Wielding a cake of soap which supposedly raises money towards breast cancer research, she claimed that there’s often a cap to the corporate donation – say, $150,000 – and once that’s been reached, buying more of a product isn’t going to add to that pot. Yet people continue to buy the soap in the mistaken belief that they are supporting a charity.

“People would be better off buying the best value product and giving the money they’ve saved to the charity directly,” she said.

But one member of the debate audience took issue with this, saying that purchasing a product linked to a cause was a way of engaging members of the public who don’t normally give to charity. The counterargument given was that these people may think they are giving to charity, but if all the trees have already been planted, or all the money raised, it amounts to a bit of con.

Martin Paul, ex-Cancer Council NSW Fundraising Director and now working with Pareto Fundraising, reminded us that corporate engagement is not always about the money.

“Corporates can also help us reach more people to spread our message,” Paul said, giving the example of Cancer Council NSW’s partnership with NAB to help 27,000 people access the LifeSmart risk assessment tool, raising awareness of the connection between cancer and lifestyle in the process.

“Charities can engage with corporates by the carrots or stick method,” said Paul, and it was clear which method works better. “Look at Greenpeace – they browbeat companies into doing better; whereas an organisation like WWF works with companies to help them with environmental audits, and improve their performance collaboratively.”

Both Paul and Ho asked the question: why do we judge corporates for advertising their commitment to a cause, when if someone does something ‘good’ like giving blood, they get a sticker which they display proudly, and are lauded for their efforts?

Maybe, countered John Burns from MSF, because it’s hypocritical for corporations to try to be do-gooders – and for charities to accept their money – unless they are above reproach when it comes to their business dealings.

“We need to look at what these companies are doing, their ethics,” he said. “We claim that taking their money is for the greater good, but we need to take a good long look at what we are doing and why.”

As the final speaker for the night, Burns had the last word. “In the end, it’s not about coming up with a ‘win-win’ for charities and corporates – it has to be about doing what’s best for our beneficiaries.”

For further information on our masterclass and debate series, please contact us on masterclass@paretofundraising.com

Expertise | Integrity | Passion