Monday, October 17, 2005

Charity Village�NewsWeek: Cover Story

Charity Village�NewsWeek: Cover Story: "Corporate connections: Why the business world needs nonprofits
October 17, 2005
By Elisa Birnbaum

'It's not only important to make money, it's important to give back to the community.' These words, spoken by Donald Trump, one of the more notable corporate and philanthropic leaders of our time, say a lot about the ever-increasing role that philanthropy plays in the business world today. Wanting to enhance their reputation in the competitive marketplace, as well as attract and retain employees, corporations look to the nonprofit sector to fulfill those needs. Likewise, as government funding continues to decline, there is a growing focus by nonprofits on securing valuable corporate relationships to make up for the shortfall.

Yet, while these symbiotic partnerships are becoming more popular, one must question just how significant they are to the nonprofit sector's bottom line. After all, in 2003, the National Survey on Nonprofit and Voluntary Organizations reported that just 3% of the total revenue of charities and nonprofits is attributed to corporations. So, are these relationships simply a symbolic measure of the corporate world's intensified public relations strategies, or are they actually creating profound and long-lasting effects on the not-for-profit sector? The answer, it seems, depends on the organization's strategic vision, the partners they've chosen, the realistic goals they've adopted, and the level of synchronicity that binds them all."

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