An alternative to measuring social performance with the Need » Goal/Objectives » Activity » Evaluation model is to form a strategic partnership with a nonprofit organization that is aligned with your company’s values and social goals, and measure your social performance by your share in that organization’s achievements. This method essentially outsources your social accomplishments to a public benefit corporation, which specializes in the delivery of social impact.
Though profitable philanthropy is no longer an oxymoron, think beyond donations or grants. A simple cash or goods transfer is just that; you can’t measure something you handed over. Outsourcing social impact is about investment, and investments are about getting a return. Similarly, cause marketing can yield tremendous benefits to a socially responsible business. If done well and for the right reasons, promoting a cause or partnership with a nonprofit, sponsoring, licensing, co-fundraising, and facilitated giving all work well for both sides. However, the objective is ultimately financial: raise funds for the nonprofit, increase brand awareness and sales for the business.
So what is a values-based business to do to outsource its social impact? First, choose a nonprofit whose values, goals, activities and outcomes align with your vision for your company’s social impact. Questions to ask:
- Does the nonprofit have a values statement it lives up to at all times, with its words and actions? Do its stakeholders’ words and actions confirm the nonprofit’s values? Does your business have the same, or at least very similar, values?
- Does the nonprofit have a concise needs statement? Does your company want to have an impact in the same area?
- Does the nonprofit state its goals and objectives for alleviating the community need? Does the nonprofit measure the outcomes of its activities (and report on them)? Is the Need » Goal/Objectives » Activity » Evaluation model in place?
- Does the nonprofit have a demonstrable history of success in achieving its objectives and delivering measurable outcomes? Do your respective organizations work toward the same goals? (This means you set social performance targets for your business. Of course, you can also partner with the selected nonprofit on developing them.)
After you’ve identified the right organization or organizations, determine the level of your commitment, which should be commensurate with the social impact you wish to accomplish. You can contribute finances as well as time (your or your employees’ sweat equity). This requires learning more about the nonprofit’s operations and services, particularly the cost structure of each activity. You will measure your social performance only on the portion of the nonprofit’s performance you supported. The larger your investment, the bigger impact you can claim to have achieved.
Finally, set up a rigorous reporting mechanism. Talk to the nonprofit’s long-term foundation funders to learn more about the ins and outs of reporting (but keep in mind foundations give grants). The more significant your investment, the greater the nonprofit’s accountability to you for its results. Ensure the nonprofit understands your commitment is not a donation, but an investment, which gives you a stake in the organization’s success. Agree on a reporting schedule and outcome benchmarks.
Keep the lines of communication open at all times. Transparency is key. Above all, enjoy yourself, you’re helping to change the world!
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Image: kokjebalder.
