The Muttart Fellowships Partnerships: Profits and Not-for-Profits Together Partnerships: Profits and Not-for-Profits Together Martha Parker Partnerships: Profits and Not-for-Profits Together MMartha Parker Price $10.00 Printed in Canada Each item in The Muttart Fellowship Products Series carries “the look” designed for the program. The concept incorporating pebbles and water fits with the Zen-like qualities of the visual identity of the Fellowship Program. Each front-cover pebble is different—representing the uniqueness of each fellow and what s/he has to offer. Applicants are like pebbles among pebbles. After each is refreshed and renewed through the Fellowship year, s/he has an impact on the nonprofit charitable sector like the rings the pebble creates on a pond of water. The varied use of this design recognizes the individuality of the Fellows while also creating a unified look to the Muttart Fellowship Products Series. The Muttart Fellowship Program—unique in Canada—was created in 1996. A project of The Muttart Foundation, a private foundation based in Edmonton, Alberta, the program is designed to: • develop research and other materials that will benefit the charitable sector in Canada. • provide senior managers within the social-services sector with an opportunity for a sabbatical year—a chance to recharge and renew themselves. Up to five fellowships are awarded each year to people working in senior-management positions in social-service charities within the Foundation’s funding area—Alberta, Saskatchewan, Northwest Territories and Yukon. During the Fellowship year, the Fellow leaves his or her agency to work on the chosen project. The Foundation makes a grant equal to the salary and benefit costs for the Fellow’s position, and provides a budget for expenses related to the project. At the end of the Fellowship year, the Fellow returns to his or her agency for at least a year. For more information about the project, please contact: Executive Director The Muttart Foundation 1150 Scotia Place 1 10060 Jasper Avenue Edmonton, Alberta T5J 3R8 M Partnerships: Profits and Not-for-Profits Together A Muttart Foundation Fellowship Project August, 1999 Martha Parker Executive Director, Volunteer Calgary Calgary, Alberta Published by: The Muttart Foundation ©Rights to this material are held by The Muttart Foundation. Permission is granted to any not-for-profit organization to use the material, in whole or in part, for any non-commercial purpose, provided that credit is given to the author and to the Foundation. Permission for any other use must be obtained from The Muttart Foundation. The opinions expressed in this material are those of the author, and do not necessarily reflect the views of the The Muttart Foundation’s Board of Directors. Canadian Cataloguing in Publication Data Parker, Martha, 1944- Partnerships, profits and nonprofits together Includes bibliographical references. ISBN 0-9687041-3-1 1. Corporations--Charitable contributions. I Muttart Foundation. II. Title. HD4028.C6P37 2000 361.7’65 C00-900813-6 Second Printing April 2002 Dedication To abundance thinkers everywhere Acknowledgements Thanks go to: • the Muttart Foundation for offering me a challenging learning opportunity and for their vision in encouraging research from the trenches. • the Board and staff of Volunteer Calgary who were happy to see me leave for a year and who I believe were also happy to have me return. Particular thanks to Colleen Kelly, who gave up a year of her life to take on the Executive Director responsibilities of a very busy volunteer centre and who survived quite nicely. • the corporations who shared their stories with me, particularly those which had the dubious honor of becoming “a case study,” and to their many not-for-profit partners who were prepared to reflect and debate the value of partnership thinking. They are leaders all. • the many bright minds along the way who encouraged me, assisted me — friends and colleagues — who gave me the gems of their wisdom. Special thanks to Bob Wyatt from The Muttart Foundation, Chris Pinney from the Canadian Centre for Philanthropy, Richard Steckel of AddVenture Network, Inc., Eric Young of EYE, Heather MacDonald from the United Way of Calgary, Dan O’Grady of Canadian Airlines, Gillian Kinch of Chevron Canada Resources, Dianne Young of TELUS, Tara Addis and Richard Pringle of Glaxo Wellcome, Valerie Tibbles of Corporate Community Relations, and Martin Garber-Conrad and Merrill Cooper — both new fellows and now old friends. • Linda Brackenbury from the Comtac Corporation who deserves a medal for not only teaching me how to turn on this computer, but how to create magic....on a good day. • Samantha-jane Mugridge from Engineered Writing who has made this document readable, grammatically correct, and quite honestly more than I could ever have made it to be. • forever and always and singularly the most important people in my life, my family — Stewart, Karly, Alison, Brendan and the newest member — another wonderful gift of the fellowship year — Emilee — who all, at one time or another, had to deal with the raving extrovert buried in paper in the basement, cussing at the new computer and threatening to run away from home at least weekly. • And lastly, to abundance thinkers everywhere, for we are blessed. Table of Contents Executive Summary Executive Summary . 1 Chapter 1 Introduction 1.1 General Statement. 5 1.2 Evolution of the Nature of Corporate Support . 6 1.3 Charitable Funding in Canada . 7 1.4 Background to the Project. 8 1.5 Objectives of the Project . 10 1.6 Methodology. 11 Chapter 2 Case Studies 2.1 Introduction . 13 2.2 Case Study Findings . 15 2.2.1 Criteria and Issues — Corporations . 15 2.2.2 Criteria and Issues — Not-for-Profits . 16 Chapter 3 Rationale For Change 3.1 Introduction . 19 3.2 Corporate Rationale for Change . 20 3.2.1 Cynicism: Building Trust . 20 3.2.2 Market Expectations: Identifying and Addressing Stakeholder Concerns. 21 3.2.3 Accountability: Ensuring Outcomes and Impact . 24 3.2.4 Efficacy: Narrowing the Focus . 25 3.2.5 Image: Telling the Story . 26 3.3 Not-for-Profit Rationale for Change . 27 3.3.1 Government Downsizing: Diversify Funding. 27 3.3.2 Increased Demand for Service: Focus on Mission and Ends . 28 3.3.3 Accountability: Ensure Outcomes and Impact . 29 3.3.4 Competition: Build Image and Capacity. 31 3.3.5 Sustainability: Identify New Markets for Resources . 32 Chapter 4 The Evolution of Leading Corporations and Not-For-Profits 4.1 Introduction . 35 4.2 Leading Corporations . 35 4.2.1 Cheque Book Philanthropy . 35 4.2.2 Strategic Philanthropy. 39 4.2.3 Community Investment. 40 4.2.4 Corporate Social Responsibility . 41 4.2.5 Corporate Citizenship . 43 4.3 Leading Not-for-Profits. 46 4.3.1 Service Provider/Entitlement. 46 4.3.2 Strategic Repositioning. 47 4.3.3 Partnerships and Collaborations . 47 4.3.4 Not-for-Profit Social Responsibility 49 4.3.5 Not-for-Profit Citizenship . 50 Chapter 5 Reflections and Learning 5.1 Introduction . 51 5.2 What is a Partnership?. 52 5.3 Partnership Formulas . 53 5.4 Organizational Commitment . 55 5.5 Policy Development . 57 5.6 Choosing Partners . 58 5.6.1 Size of Companies . 59 5.6.2 Determining the Best Company to Approach . 61 5.7 Saying “No” . 63 Chapter 6 Summary 6.1 Introduction . 65 6.2 Responsive to Proactive . 66 6.3 Isolated to Integrated. 66 6.4 Invisible to Visible . 67 6.5 Noblesse Oblige to Societe Oblige . 67 6.6 Organizations to Causes . 69 6.7 Charity to Change . 70 6.8 Money to “More” . 71 6.9 Closing Thoughts . 72 Appendix A: Details of Case Studies A1 Chevron Canada Resources A1.1 Company Profile. A-1 A1.2 Background . A-2 A1.3 Critical Steps in Program Evaluation. A-3 A1.3.1 Positioning and Alignment . A-3 Conduct benchmark research. A-3 Create vision, mission, and value statements for the community affairs function.. A-4 Link company values with community values . A-4 Identify funding priorities . A-4 Link community investment to operations . A-5 A1.3.2 Decentralization of Community Investment Functions . A-6 Development of a Community Investment Reference Manual. A-6 Consultative Services . A-7 A1.3.3 Employee Involvement . A-8 Chevron Employee Partner Program . A-8 Chevron “Make a Difference Days” . A-9 Chevron “Retirees in Action” . A-9 A1.3.4 Internal Communication . A-9 Company Newspaper . A-9 Intranet Explorer. A-9 Community Affairs Newsletter . A-10 Other Strategies . A-10 A1.4 Focus on Core Areas and Strategic Investments . A-10 A1.4.1 Flagship Program . A-10 A1.4.2 Program Success. A-11 A1.4.3 Key Points . A-12 A1.5 Other Programs/Projects . A-13 A1.6 Strengths of the Program. A-14 A1.6.1 Entrenched Commitment . A-14 A1.6.2 Selling the Strategy. A-14 A1.6.3 A Move To Solution-Based Programs . A-14 A1.7 Concluding Statement . A-15 A2 Flint Canada Inc. A2.1 Company Profile. A-17 A2.2 Background. A-18 A2.2.1 Historical Perspective . A-18 A2.2.2 Strategy . A-18 A2.3 About Child Find . A-21 A2.4 Developing the Signature Partnership . A-22 A2.4.1 Getting Started . A-22 A2.4.2 Taking the Program to Field Offices. A-23 A2.5 Recent Developments and Current Program Status . A-24 A2.5.1 Program Expansion. A-25 A2.5.2 Current Initiatives . A-25 A2.5.3 Other Benefits. A-25 A2.6 Strengths of the Program. A-26 A2.6.1 Employee-Driven Program . A-26 A2.6.2 Leveraging Internal Resources .