When NPOs turn to philanthropy

When NPOs turn to philanthropy

2024-11-09 05:00:00

This text is part of the special Philanthropy section

The gloomy economic context and the ghost of austerity complicate the activities of non-profit organizations (NPOs) and social economy companies… and push them to show creativity in their fundraising. Philanthropy can certainly be a solution, according to BNP Philanthropic Performance.

The needs of NPOs are immense at the moment, says Christian Bolduc, CEO of BNP Philanthropic Performance.

For 25 years, the consulting firm has been offering services to help NPOs set up fundraising campaigns and foundations, recruit human resources employees, meet their legal needs or even give them a helping hand in their government relations.

“Governments have been relatively generous following the pandemic period, according to Mr. Bolduc. Except that we are going to enter a new era of budget cuts and austerity. We will therefore have to be more imaginative and, consequently, find innovative solutions to the social issues that our NPOs want to address. »

Because in a difficult economic context, the general public also tends to reduce their contribution to charitable organizations.

“We must diversify our solicitation methods to meet contributions differently, and seek major donations from donors who are less affected,” explains Mr. Bolduc. Generally, when there is an economic crisis, you have to remember that not everyone is hit in the same way. »

The world of philanthropy has changed a lot over the past 25 years in the province: “in our Quebec Inc., we are in the second or third generation [d’entrepreneurs]so some of them sold their business to the next generation and are capable, today, of paying $25,000, $50,000 or even $100,000 to charity,” underlines Christian Bolduc.

Many BNP clients have also managed to do well despite a reduction or even a refusal of subsidy, he adds.

A “non-comfort” zone

The Hochelaga-Maisonneuve Collective Kitchen (CCHM) had to completely reorganize its structure in recent years, when the organization experienced great growth. While it used to generate 60% of its revenues from its own activities, the expansion of projects caused the share of these revenues to drop to 30%, then to 20%.

“Our ambitions made us realize that between our self-generated social economy income and our subsidies, we would not necessarily be able to deploy all of the things we wanted to do,” relates the general director of the organization, Benoist de Peyrelongue. We had to have another complementary approach, a philanthropic approach… which was absolutely an area of ​​non-comfort for us, which we did not know at all. »

The NPO therefore decided to embark on the creation of a new structure to meet its needs: a foundation. With the help of BNP, the organization structured this new entity by involving its partners and set up a major fundraising campaign.

Ultimately, this new approach developed thanks to the advice of BNP allowed the CCHM to find donors… who in fact become partners, explains Mr. de Peyrelongue.

Some companies also get their employees involved with the CCHM or organize team building activities on the organization’s farm. Another lent land to the organization so that it could plant vegetables, which it then gave back to the community in eastern Montreal.

“In certain foundations, large donors are entitled to a plaque on the wall with their name,” underlines Mr. de Peyrelongue. For us, if you give us money, you will come and plant a fruit tree. There is an exchange that takes place, we give each other news. We developed this notion of belonging. Yes, there is a financial aspect, but there is something else behind it. »

The importance of status

Retired entrepreneur Jean Champagne, well known in the Beauce region, set up several organizations during his career that he still manages.

He used the services of BNP, in particular, to have three of them officially recognized as charities with Revenue Canada and to set up fundraising campaigns.

“In the non-profit aspect, we may have good intentions, but if we want to carry out a fundraising campaign and submit receipts for charitable purposes to the government, we must be a charitable organization… And, there, we falls into another level of complexity,” explains the man who will receive the Volunteer Award par excellence in philanthropy on November 13, awarded by the Association of Professionals in Philanthropy (Quebec section).

This content was produced by the Special Publications team at Dutyrelating to marketing. The writing of the Duty did not take part.

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Cceed, ‌we need to adopt⁤ a professional approach,” says Mr. Champagne. ⁤”Recognition as a charity⁣ opens many doors; it enhances credibility and allows us to reach donors who may not have considered contributing otherwise.”

He emphasizes the importance of transparency and accountability in NPOs. “Donors want⁢ to see ‌where their money ⁢is going and how it’s ⁣making a​ difference. ⁤The more transparent ‌we are, the more trust ‍we⁢ build with our supporters.” ​This sentiment is echoed by various leaders in the non-profit sector,⁣ as they strive⁣ to maintain ⁤and⁤ enhance⁣ relationships with the community and potential funders.

Moreover, Mr. Champagne ‌notes that establishing a solid governance structure is vital‍ for the sustainability of NPOs. “Having a clear mission and a dedicated board of directors ensures that the organization remains focused and accountable,” he explains. “It instills confidence in ⁢donors that their ⁣contributions⁣ are well-managed and directed​ towards impactful initiatives.”

In light of the current economic climate, he acknowledges that⁢ competition for funding is intensifying. “There are ⁤more organizations vying for the same pool of philanthropic dollars. ‌This means we must continually innovate and demonstrate our unique value proposition to stand out.”

Ultimately, as NPOs‍ navigate ⁤challenges posed by budget ⁣cuts and shifting donor landscapes, the necessity for creativity in fundraising strategies and a solid operational framework has never been more critical. The collaborative partnerships, innovative ​outreach methods, and commitment to transparency will be key factors in ​ensuring their viability and success ‍in‌ the future.

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