How do corporations differ from individuals

December 21, 2011

Filed under: Fundraising — Tags: — jonathanpoisner @ 3:21 pm

No, this isn’t a blog about Citizens United and the inanity of the Supreme Court giving corporations the right to make unlimited contributions in elections.

As I work with clients on fundraising, many of them manage corporate giving and major donor giving as very independent efforts, while others treat them as entirely the same.

I’d advocate for a middle ground recognizing the differences in the ways corporations give, and the differences between different types of corporations.

If you’re thinking about how corporations differ from individuals when you’re soliciting a $250+ gift, here’s some of my rules of thumb.

Very Small Companies

Very small corporations are not different than individuals. You should be speaking with the owner and their motivations for giving and the methods of solicitation should be no different than an individual donor.

Most Small/Medium Sized Businesses

Most small and medium businesses have no formal process for making contributions.

They tend to be on an ad hoc basis with the owner and/or manager having some authority.

Most donations are done either because the owner/manager has a strong connection to the charity or because the giving is done in a way that generates marketing. You should be clear going into an ask which motivation you’re focused on so the pitch can be appropriate.

While managers may have some authority, you are almost always better off talking with the owner if you can solicit them directly.

Large Corporations

Large corporations tend to have formal processes for making contributions.

These processes often have significant lead times prior to making a decision

Managers/staff are the decision-makers, not owners.

Different managers may have separate budgets for giving. A public affairs manager may have one budget and a marketing manager may have a separate pot of funds.

People other than those directly with the authority to make donations are generally not all that helpful as a route to generating a donation, unless they are higher in the corporate hierarchy than the person making the decision.

While these corporations tend to have policies around donations, personal relationships still are king – if you have a personal relationship with the person making the decision, you are far more likely to secure a donation.

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