Franken-Profit: How to Approach For-Profit Funders

This weekend we celebrate the birth of Frankenstein’s monster, along with its true creator, writer Mary Wollstonecraft Shelley.

Mary Shelley wrote her gothic story of a mad scientist sewing together bits and pieces of people to create a new being—his monster—as a dare. We’re sure she would never have guessed that nearly 200 years later, this creature would become a worldwide symbol for unlikely things forming a composite, or the inspiration for a blog on nonprofit management!

I beheld the wretch - the miserable monster whom I had created--Mary Shelley, "Frankenstein"

But actually, a mashup of for-profit and nonprofit goals is a beneficial choice for many nonprofit leaders hoping to expand their outreach and ensure their mission’s sustainability. By joining up with potential for-profit partners, your nonprofit may have a lot to gain—and it won’t be a monster! In fact, any “Franken-profit” collaboration that you might be able to attain has plenty of positive points going for it.

What kinds of collaboration are there?

There are several kinds of collaboration that your nonprofit may be able to arrange with a for-profit partner. In this blog post from FieldStoneAlliance.org they mention:

• Organizational collaborations
• Smart leases
• Financial collaborations
• Reverse investments
• Collaborations with no financial reward

Invention, it must be humbly admitted, does not consist in creating out of void, but out of chaos.--Mary Shelley, "Frankenstein"

It may be possible for your organization to partner with several businesses, using various types of collaboration. What’s important is how you frame that collaboration.

As Simon Mainwaring writes on Beth Kanter’s blog, many nonprofits focus too much on their mission when negotiating with a for-profit. Instead, they should couch their points with the company’s goals in mind. Tell your for-profit friends how the collaboration will help them instead of only how they should help you.

Approach any potential partners with these points in mind:

Reputation

From the nonprofit’s side, a collaboration with a well-known business in your community can add weight to your reputation, and add to the appearance of stability from the community. This can be especially important if you are a newly funded nonprofit or if you are beginning programs in a new community.

From the for-profit’s side, collaboration with a nonprofit makes them look good too. People reward businesses they feel are investing back into the community with loyalty and increased sales. According to a 2010 report by Cone Communications, 85 percent of Americans have a more positive image of a company when it supports a cause they like. And, the same report states that 29 percent of consumers have researched a company’s business practices to see if they have a sense of corporate responsibility.

Short-term goals

Perhaps there’s a community event, such as a marathon or fair, that both organizations could take part in. Coming together for a short-term fundraising goal or other collaboration will help you both raise awareness about your brands and missions, while pooling volunteer staff and other resources.

One area where a nonprofit/for-profit alliance for short-term goals may be most beneficial is in crowdfunding appeals, giving days, and other campaigns that rely on raising wide awareness in a short period of time.

Opportunities for growth

Mainwaring recommends highlighting the metrics you will use to count your successes. This is as important to for-profit companies as it is to funders, and should be important to your nonprofit, too. A successful short-term collaboration now will open other doors in the future for both your team and the for-profit, so be sure to emphasize the potential long-term rewards to your contacts.

Of what a strange nature is knowledge! It clings to a mind when it has once seized on it like a lichen on a rock.--Mary Shelley, "Frankenstein"

So, what do you think? Would a Franken-Profit work for you? Read more at the links below, and contact us on Twitter if you have anything to add!

NB: Original image of the "Franken-Profit" poster above by Employee(s) of Universal [Public domain], via Wikimedia Commons.

Looking to read more?

• Inc. magazine offers some case studies of nonprofit/for-profit hybrid organizations.
• The US Small Business Administration gives some tips to for-profits looking to work with nonprofits on cause marketing.