NFPs Need to Create Shared Value Partnerships
Tuesday, 23rd July 2013 at 11:32 am
World Vision CEO Tim Costello has told Not for Profit organisations that the sector is entering a new phase of convergence with corporate partnerships and shared value.
Speaking at the Not for Profit and Corporate Partnerships conference in Sydney this morning, Costello said the categories of how poverty can be beaten has changed.
"It used to be that if we raised the dollars here and transferred it to them there, that’s our job done," he said.
"Now World Vision is into social ventures.
"These categories of Not for Profit and business, not just in fundraising but in terms of what you do, is converging.
"It seems to make sense for businesses and NGOs to work much more closely around shared value.
"We both depend on stakeholder and consumer perception.
"The convergence is happening and we are seeing it right down at the ground level."
But Costello reiterated the importance of creating a strong relationship with corporate business partners.
"You need to understand your partners or prospective partners," he said.
"We just don't take a fantastic grant that takes us into another area just because it is there, that's not our purpose.
"We need to keep a focus on our purpose, our key assets.
"Our grassroots knowledge, our awareness of challenges and trends is important for corporates.
Costello said the time was right for convergence because the Not for Profit sector itself had transformed and was working better together, no longer being fragmented.
"These [corporate partnership] opportunities haven't traditionally been ours because we have actually seen ourselves as competing for the charitable dollars with each other," he said.
"The collaboration of the sector has been fragmented but we need to overcome that."
Costello said a co-creating relationship between Not for Profit organisations and For Profit businesses was key.
"We can't wave magic wands, we can't change the world on our own…but we can bring in things that co-create.
"Partnering is a bit of a courtship."
Costello said there was three key principles in a successful partnership:
"In the 21st Century our sectors are converging, build trust and take those processes seriously," he said.