Non-profit Partnership Agreement

Definition of a non-profit partnership

A non-profit partnership, also referred to as a charity partnership if based on charity, is a non-profit relationship. In the relationship, a non-profit entity and corporate sponsor join forces to meet common objectives based on shared values. For instance, animal shelters may partner with local banks. In such a partnership, the bank may contribute recurring donations to the animal shelter or sponsor particular events like off-site adoption events. The shelter may also acknowledge the partnerships through labelling the event “Rockville Community Bank Adoption Extravaganza”. The event could also be labelled after the corporate organization.

An organization that raises funds for kids with cancer could also partner with prominent car dealership. The preceding dealership may set donation stations in its showroom where those shopping could make their donations. All the preceding forms of a partnership should be formalized through a non-profit partnership agreement.

Goals of a non-profit partnership agreement

Some of the goals that a non-profit partnership agreement should meet include:

  • Mutual benefit. Non-profit partnership agreements are the basis of a long-lasting mutually beneficial arrangement. A partnership is considered to be mutually beneficial if it has merits for both the non-profit entity and the corporate business. The intangible benefits should also outweigh any costs incurred.
  • Alignment of the brand. A non-profit partnership agreement should also clearly outline the shared goals. The non-profit entity and partnering organization ought to have common objectives. For example, it is not reasonable for an oil company to partner with a nature conservancy company. The values of one entity could undercut the mission of another. Further, a non-profit entity should seek corporate partners whose values match theirs.
  • Constant communication. Partners that have a non-profit partnership agreement in place work best when honest and open communication is maintained. The non-profit should also open up on what it hopes to gain from the partnership. On the other hand, the corporate partner should be transparent on what it hopes to achieve.

Reasons for non-profit partnership agreements

Having a non-profit partnership agreement has several benefits for non-profit entities. Such include:

  1. A surplus of the operating funds. A non-profit partnership agreement formalizes the relationship hence recognition by the public. Though non-profit organizations do not operate for the money, the majority need the funds to operate their programs successfully. They thus receive help from the corporate partners and the public.
  2. Enhancement of community standing. Through a non-profit partnership agreement, the community may be fortunate to have a surplus of non-profits to improve the world. However, it may be difficult to stand out in the crowd. Working with corporate partners could expose the partnership to people that have never crossed the path. Further, established entities often have profound connections in society and can use them to aid non-profit flourishing and networks.
  • Increased pool of volunteers. Once a non-profit partnership agreement is formed, some of the employees are volunteers. If employees volunteer as a team, they can do a lot within a short period of time. Further, an affirmative experience volunteering with work friends could make them want to come back thus aiding the non-profit with retention of volunteers.
  1. Wider influence. A non-profit partnership agreement formalizes a non-profit partnership entity thus makes it well-known in the public. The non-profit partnership agreement also aids in securing a huge client base. When the clients become aware of the partnership, they are inspired to be involved too. A business that is well-known could also recommend donors and supporters to the non-profit entity.

Interests of corporate entities in nonprofit corporate partnerships

Although corporate entities enter into a non-profit partnership agreement willingly and give generously, they have their own interests and needs to meet. There are various ways in which corporate partnerships with non-profits benefit from the participating businesses. Such include:

  1. Community reputation

The majority of the consumers associate themselves with companies that conduct business in a conscientious, caring, and trustworthy manner. By entering into a non-profit partnership agreement, businesses become involved with charity and volunteer operations. Hence consumers think highly of such businesses.

  1. Advertisement opportunities

Once the businesses enter non-profit partnership agreements, they sponsor non-profit events. They also get advertisement opportunities through the use of their names of prominently displaying their logos. Businesses could also reference the non-profit entities in their internal marketing materials. This is done with emphasis on being proud to support the exemplary work of the non-profit partnership. Such opportunities aid in raising the visibility of the business in the public aye and creates positive brand associations.

  1. Morale of employees

Employees that are part of a non-profit partnership agreement and are satisfied with their roles are more productive. They are also likely to stay in the partnership for long. Turnover of employees has cost companies much but through boosting their morale, they can be encouraged to stay thus preventing losses. Companies that are part of non-profit partnership agreements are likely to witness enhanced employee morale. Further, knowing that the operations of a business are part of the mission to do good work in the community makes employees feel positive regarding the business.

  1. Energized client base

Basically, businesses desire to form non-profit partnership agreements with non-profit entities that their clientele love. Such include organizations that tug on the heartstrings like those that work with pets and homeless children. They may also include the organizations that have the mission of intersecting with the clients’ interests. For instance, an outdoor gear company partnering with a nature conservancy entity. If the clientele of the company is happy about the non-profit partnership agreement with such entities, they may continue dealing with the company.

  1. Increased sales

Companies are often in businesses to maximize their revenues. Thus, working with non-profit organizations frequently offers ways to do so. Some of the increasing sales could come from marketing and advertising opportunities. Others emanate from association with positive brands provided. Thus, the majority of the businesses consider non-profit partnership agreement with successful ones if they have net affirmative effects on the revenues of the business.

  1. Data

The majority of the corporate partners ask for documentation of contribution and how their donations and efforts contribute to charity. The documents include non-profit partnership agreement. Such records may be shown to their shareholders as evidence of corporate responsibility practices. They may also show their employees the effect they had. Being able to document such benefits of the partnership aids in keeping the relations between one and the corporate partner robust.

Formation of a non-profit partnership agreement

Once the partners decide on engaging in a non-profit partnership, it is best if they formed a non-profit partnership agreement. Some of the tips on forming a non-profit partnership and subsequent non-profit partnership agreement include:

  • A list of the potential partners

One of the initial steps of before drafting a non-profit partnership agreement is deciding the entities that are suitable for partnership. One should make a list of the businesses in the area that have positive and strong reputation. It would even be better if one could tie the expertise to eth non-profit work. For example, an animal shelter could potentially partner with businesses like PetCo, of foodbanks could partner with chains of local grocery.

  • Leaning on one’s connections

Before drafting a non-profit partnership agreement, one should use the community connections to get introductions with the local businesses. The board members, in such instances are invaluable since they could have connections with high-end executives like CEOs. They also often appear to be happy to facilitate introductions and reach out to volunteers.

  • Ensuring compatibility

Once one identifies the various promising businesses, one should ensure that one’s values align with them before drafting a non-profit partnership agreement. Looking into the values and cultures of the suitable company is also key since it reveals how they conduct their business. If an entity is not proud of an alliance, there is no need of partnering with it.

  • Offering solutions

When one is meeting with the potential partners, one should establish whether there are ways in which the non-profit partnership agreement could aid in solving problems. For example, a homeless shelter or food bank looking for food donations that may partner with a hotel or grocery chain to reduce food waste. Although not all charity partnerships are perfect, the business should scout for areas that need improvement.

  • Establishing one’s price

An entity should establish its level of donation, sponsorship, and volunteering that will make the sponsorship worth investing energy and time. It should also consider the contributions needed from corporate partners versus the benefits that are a mere plus.

  • Vision and goals

The objectives, mission, and vision of the partnership should be clearly communicated. If a party desires to take certain amounts of revenue every year for the programs, it should be indicated in the agreement. Other goals could include the expansion of literacy.




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