Confidential

Inside Corporate Social Responsibility (…For Nonprofits)

February 23, 2017 Clifford Yee – Managing Director Carol Chin-Fatt – Engagement Leader

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Agenda – Inside CSR For Nonprofits

• Overview and Introductions

• Part I: CSR Fundamentals • What is CSR? • Why do companies engage in CSR? • Establish the context of CSR today • Explore how companies partner with nonprofits

• Break

• Part II: Effectively Partnering with Forward Leaning Companies • A framework for creating strategic partnerships • The rise of B Corps • Inside the mindset of corporate funders

• Q&A

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Facilitator Introductions

Cliff Yee

@clifford_yee

Carol Chin-Fatt

@chinfattc

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To serve as a catalyst for positive systemic

change

A Snapshot of Raffa, P.C.

Mission

Total Employees (DC & Rockville)

275+

Total

Clients

1000+

Accounting Consulting Technology

Audit Human Resources

Tax Search & Transition Investment Advisory Employee Benefits Af

filia

ted

Com

pani

es

Professional Services $344,701

Cash Contribution

$119,571 In-Kind Contribution

$2,415,485 Pro Bono Contribution

$2,879,757 2015 Total Contributions

Community Giving

2015

Revenue

$46M

@RaffaDoMore

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Portfolio Mngt for

Nonprofits

401(k) & 403(b)

Consulting

Nonprofit Policy

Consulting

$570 AUM & 66

Nonprofit Clients*

Acts as Fiduciary

Study on Nonprofit Investing (SONI)

A Snapshot of Raffa Wealth Management @ RaffaWealthMngt

*AUM and NP Clients as of 12/31/2015

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• Peer benchmarking survey • Last year, over 700 nonprofits

participated • Helps to answer

– How do other nonprofits invest their reserves?

– Are our investment policies “normal”? – Is our investment performance in-line with

similar organizations? • FREE results report • Visit www.npinvesting.org to see last

year’s Executive Summary

The Study on Nonprofit Investing (SONI) @SONIstudy

Participate today! Deadline is Tuesday, Feb. 28 https://www.surveymonkey.com/r/2017SONISurvey_116

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“CSR refers to business practices involving initiatives that benefit society.”

-Business News Daily

Corporate Social Responsibility (CSR) defined

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Companies choose different paths with their CSR programs based on their lifecycle, mission and values

Be Philanthropic

Maximize Profit

Align with a Cause

Create Shared Value

Make a Collective Impact

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Regardless of the path chosen, companies who actively engage in CSR realize key stakeholder benefits

• Differentiation

• PR & Marketing

• Customer loyalty

• Environment

• Supply Chain

• Cost Savings

• Productivity

• Talent Retention

• Company Culture

Brand Operations Employee Engagement

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While consumers have long been pressuring companies to be socially responsible, Millennials now demand it

SOURCE: Cone Communications, Millennial CSR Study, 2015

…Millennials would switch brands to one associated with a cause (vs. 85% U.S. average) …Use social media to engage around CSR (vs. 53% U.S. average) …Are willing to take a pay cut to work for a responsible company (vs. 56% U.S. average)

91%

66%

62%

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Traditional Innovative

•Integrated

•Measure Outcomes

•Holistic/Systems

•Flexible/Disruptor

•Risk-taker

•“Collective Impact”

•Silo’ed

•Measure Inputs

•Programmatic

•Structured/Defined

•Risk- adverse

•“Checkbook Philanthropy”

Forward leaning companies understand this and have begun to embrace CSR as a strategic function

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With a new lens on CSR, socially responsible companies are finding innovative ways to add value to nonprofits

Stakeholder engagement

Supplemental funding

Technology/Products

Strategic Expertise

Marketing

Back Office Support

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Environment

Supply Chain Community

Workplace & Governance

And likewise, progressive nonprofits are finding new ways to add value back to companies

• Corporate giving • Community Investment

• Leadership development • Health & Safety

• Environmental impact • Sustainability

• Labor issues • Procurement Policies

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As a result, relationships between companies and nonprofits are transforming

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Transactional Transformational

•Collaborative

•Shared goals

•Ongoing, open dialogue

•Impact-driven

•Independent

•Misaligned objectives

•Infrequent 1-way communication

•Metrics-driven

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Not all “ships” are created equal, but all can create mutually beneficial relationships

Choose your ship:

SPECTATOR SPONSOR PARTNER

Strategic partnership

An agreement between two mission aligned organizations to share resources and work

together in the pursuit of common goals

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Part 2

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A 3-step framework for creating strategic partnerships

Identify Engage Nurture

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Identify the best potential strategic partners based on common goals

1. Motivation 2. Passion 3. Resources and Skills

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Present your organization well

• How do you present the opportunity to partner in a way that inspires interest and commitment from a corporation?

SOURCE: Simon Mainwaring, 2013

Strong Value Proposition

Inspired Storytelling

Articulated Benefits

+ =

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Highlight how your organization can add value

Brand Operations Stakeholder Engagement

How can you help build their brand and reputation?

How can you help engage their stakeholders?

How can you help improve their operations or save money?

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Brand: Give the company a platform to build its brand reputation

Event Sponsorship

Marketing

Disaster Relief

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• Walks, Runs • Care/Impact Days, Weeks, Months

• Drives & Kit Assembly • Micro-Volunteerism

• Board Service • Pro--bono Service • Mentoring • Loaned Execs • Fellowships

• Matching Gifts • Dollars for Doers • United Way/CFC • Employee Funds • Online Giving Campaigns

Involvement Projects

Employee Giving

Skills-based Volunteerism

Employee Engagement: Nonprofits can offer many opportunities for employees

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Operations: Help your partners be more efficient and save resources

Business development

Team building through

volunteerism

Inspiring stories from those you

serve

SME knowledge

Professional development

through board

service

Product creation

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Follow through - don’t disappear!

Honor your commitments

Connect regularly

Evaluate frequently

Celebrate shared success

Listen

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Trend: The rise of B Corps

90% of Americans say that companies must not only say a product or service is beneficial, but they need to prove it.”

- Cone Communications

“73% of consumers care about the company, not just the product when making a purchasing decision.”

- BBMG

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Trend: Certified B Corps

2048+ CERTIFIED B CORPS

50+ COUNTRIES

130+ INDUSTRIES

1 UNIFYING GOAL

Business As A Force

For Good

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5 Common Questions Asked by a Corporate Funder

How does this help our employees?

What business objective does this help us achieve?

How will this help tell our story?

What do we hope to gain from this investment?

How long have we been involved with this organization?

1

2

3

4

5

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Our Final Thoughts

• Be flexible! Companies look to support nonprofit organizations in a

variety of ways – through cash and non--cash resources

• Do your homework! Take the time to get to know your prospects

• Tailor your pitch! Show how your organization aligns with the social and business objectives of the individual prospect

• Demonstrate value! Partnerships should be mutually beneficial

• Be proactive! Cultivate relationships between your organization's employees and the company’s

• Stay informed! Know the latest trends and best practices in CSR

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Thank You!

Cliff Yee

cyee@raffa.com @clifford_yee

Carol Chin-Fatt

cchin-fatt@raffa.com @chinfattc

“I can do things you cannot; You can do things I cannot; Together we can do great things.”

– Mother Teresa