Published on: October 4, 2024
Written By: Chuck Kapelke for ANA
In 2022, Tropical Smoothie Cafe, a national chain of more than 1,400 cafes, sought a nonprofit partner to help reinforce the company’s vision “to Inspire Better,” which encompasses everything from its better-for-you food and smoothies to community engagement.
“We went out on a search to look for partners that we felt supported our mission,” says Deborah von Kutzleben, CMO at Tropical Smoothie Cafe, LLC. “We were looking for food-related organizations, because there is clearer alignment with the brand.”
Tropical Smoothie Cafe ultimately chose to partner with Share Our Strength’s “No Kid Hungry” campaign, which aims to reduce child hunger in the United States. With the participation of franchise owners, crew members, and guests, the Tropical Smoothie Cafe restaurant system has raised over $3 million for the campaign.
“We knew No Kid Hungry was the right partner for us,” von Kutzleben says. “We’re a retail company, so it helps that we don’t have to spend a lot of time explaining the cause to our customers. People get it immediately.”
Partnering with nonprofits can be a powerful way for companies to promote their brand purpose. Yet surprisingly few companies focus on such partnerships, according to “Reassessing Purpose As Society’s Expectations for Business Rise,” a report published by The Internationalist in partnership with the ANA’s Center for Brand Purpose.
According to the February 2024 survey of marketers, 66 percent agreed that a “strong brand purpose is an organization’s North Star, consistent with its mission and culture,” and 85 percent agreed “A purpose without substance will do more harm to the company than good.” But only 25 percent said that “Nonprofits play an important role for us to fulfill our mission and serve our constituents,” and just 15 percent said that “Right now, donating to nonprofits is important to our company.”
“Most marketers realize that they should be the custodians of brand purpose, but getting it right is the hard part,” says Deborah Malone, founder of The Internationalist. “There is an opportunity for brands to be better at collaborating with nonprofits. It goes beyond charity, and it goes beyond just donations. The most amount of good comes from true partnerships.”
Defining the Purpose
Before seeking out a nonprofit partner, brands need to have a firm grasp on their purpose — their reason for existing beyond profit. “Brand purpose is not to be confused with social purpose, but over the past few years, people have conflated the two, and that has caused all kinds of troubles,” says Dipanjan Chatterjee, VP and principal analyst at Forrester. “Purpose is fuel to the brand’s fire. Just because some companies are walking back their commitment to social issues doesn’t mean brand purpose doesn’t matter.”
A purpose should connect to the brand’s value proposition. For example, Whirlpool has a corporate vision to “be the best kitchen and laundry company, in constant pursuit of improving life at home.” “It’s really the ‘improving life at home’ that sets us apart,” says Rosa Skinner, senior manager of global corporate social responsibility (CSR) and community relations at ANA member Whirlpool Corporation.
Whirlpool carries out its mission in part through a partnership with Habitat for Humanity. The company donates appliances for newly built homes, and sends teams of employees to help with construction. “We didn’t want to just hand over dollars and leave,” Skinner says. “We wanted to make sure we were having a bigger impact with the dollars we were giving.”
Key takeaway: Brands should connect with nonprofit partners that align with their strategic goals, and invest in programs that elevate their brand. “The closer the activity is to what the company does, the more authentic it is,” Chatterjee says. “If you build in mechanisms for your people to work with the nonprofit, that can help infuse it back into your company.”
Setting the Guidelines
Brands should treat nonprofit partnerships like any business relationship, with defined agreements about each party’s obligations. “If your company is expecting the nonprofit to give you lift, however that’s defined, it needs to be structured into the relationship, and the partner needs to have the capacity to deliver it,” says Mark Feldman, founder and managing director of Cause Consulting, a firm that has worked with clients like Samuel Adams, Starbucks, and GoDaddy. “Before you go into the partnership, it’s important to know what your goals are.”
When the Home Depot Foundation works with nonprofit partners to improve the homes and lives of U.S. veterans, support communities impacted by natural disasters, and train skilled tradespeople to fill the labor gap, its partners are required to provide reports on their impact. “We have transparent communication with our partners, and we work with them before a grant is even written to say, ‘Here’s the number of veterans we’re going to serve, and here’s the impact we’re going to make,'” says Heather Prill, senior philanthropist of strategic partnerships and programs at the Home Depot Foundation, part of ANA member the Home Depot. “Then we can see how we’re doing and course-correct if necessary.”
Food and beverage maker Danone North America has a purpose focused on “bringing health through food to as many people as possible,” says Linda Bethea, CMO at ANA member Danone North America. The company sustains a range of partnerships with nonprofits, including City Harvest, providing donations of food products and volunteer support. “A strong partnership entails having mutual goals and purpose, along with accountability,” Bethea says. “My advice would be to ensure that your partnerships are really founded on common ground and have aligned missions so that the community feels the partnership is relevant and authentic.”
Companies should not be shy about making their nonprofit partners aware of their business goals. “Be honest about the business objectives,” advises Allison Shuffield, managing director of corporate partnerships at ANA member Share Our Strength, the nonprofit behind the No Kid Hungry campaign. “It helps if our partner companies have clear KPIs like ‘We’re trying to break into the Latino market’ or ‘We are trying to reach consumers in certain cities.’ That will help us bring the best we have to the table. As with any good relationship, it’s important to listen to each other.”
Key takeaway: Brands that invest time and resources in nonprofit partnerships can generate buzz inside and outside their companies, but it’s important to be candid and publicize the outcomes honestly. “If it feels like the partnership is about generating press or advertising, and there’s no substantive impact, it’s less authentic,” Feldman says. “Whether it’s greenwashing or ‘cause-washing,’ people want to see real commitment and impact.”
