Why an increasing number of companies choose to sponsor more than one organization.
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At last count, more than a quarter of Satell Institute members sponsored at least two nonprofits at the minimum membership level or more, with several choosing to support five, ten or even more nonprofits.
Some members make the commitment at the time they join the Satell Institute. Others do it later, as they gain interest in supporting additional nonprofits aligned to their missions.
What’s driving this increasing trend? CEOs find that investing more in Corporate Social Responsibility yields tangible benefits for their own companies in many ways, including:
1. Attracting better talent and positively impacting retention.
This is true especially for younger, high-skilled workers, who increasingly want to work for companies that give back. A new generation of talent is attracted to businesses that are purpose-driven, where they can achieve self-actualization working for ideals beyond a paycheck.
In the war for talent, a company with a strong record of community investment gains an important competitive advantage in what remains a tight labor market.
Supporting multiple nonprofits directly supports multiple causes that are important to employees.
2. Attracting and keeping better customers.
Reputation matters to consumers, especially those with a choice to do business elsewhere. Community investment adds to customer pride when using your brand, reducing the sense that business is made up of “takers.”
WSFS Bank, a longtime Satell Institute member, has supported 11 diverse nonprofit organizations through SI (including seven it added last December). Those nonprofits are engaged in work — education, economic development, ending food insecurity — that aids individuals and creates a more vibrant region. Customers recognize that.
3. Creating a better business environment by increasing the competitiveness of their community.
Companies that contribute back through Corporate Social Responsibility create places to live that are thought of as better not only for themselves, but for their children and grandchildren. These communities become a draw for talent and are capable of competing for regional resources, thanks to strong civic and community institutions made possible by well-funded nonprofits.
In Pittsburgh, SI member S&B USA sponsors two nonprofit organizations through the Satell Institute, the Allegheny Conference and the United Jewish Federation. “Our selection of two nonprofits through Satell has an intentional connection to our company’s interests in supporting those in need, building a more inclusive world, and helping to advance the regional economy of Pittsburgh,” says Grant Ervin, Vice President of External Affairs and Sustainability at S&B USA. The Allegheny Conference, he notes, is focused on workforce development, job creation, and infrastructure investment — all of which not only aid individuals in the Pittsburgh area, but make Pittsburgh a better place to do business.
4. Creating stronger nonprofits whose increased capacity can better meet the interests of donors and the needs of the community.
Finally, nonprofits that are supported by a member of the Satell Institute automatically become affiliate members of SI at no charge. This gives them access to training through our think tank, networking at our non-profit summit, and the tools and community resources required to grow and thrive.
“The relationship building that takes place is invaluable,” says Vernita Dorsey, WSFS’s Senior Vice President and Director of Community Strategy.
Many companies also see SI’s four-year funding requirement as an important aspect, allowing nonprofits to plan with confidence and implement multi-year programming by ending the yearly funding scramble. Predictable funding allows nonprofits to operate at a level of efficiency not otherwise achievable on a constant one-year budget horizon.
“The benefits to a nonprofit of a multi-year commitment was something that we hadn’t really thought of before we joined Satell,” says Lori Cushman, Executive Director of the Justamere Foundation in Chester County, which sponsors four nonprofits through SI. “I now look at all my grants from a multi-year perspective.”
Looking Ahead
Long-term, the many benefits companies get when they support multiple nonprofits points in one direction: As the Satell Institute continues to expand geographically, the number of members choosing to maximize their community impact by supporting multiple nonprofits that align with their interests will only expand as well.
It’s a phenomenon that gives even deeper meaning to Ed Satell’s motto, “Think WE, not just me.”