In our last partnerships post, we outlined why now is the moment to rethink traditional international development paradigms and approaches. Corporate sustainability teams need new partners to scale impact. Philanthropy is a prime candidate to fit the bill.
But here's the thing: foundations don't need your money.
What they need is your secret sauce. Operational capacity. Market access. Supply chain infrastructure. Technical expertise. These assets can help foundations scale new solutions in communities they can't easily reach on their own.
Most corporate teams approach foundations with the wrong assumption. They think philanthropy only wants corporate funding or sponsorship. But that's not how this works.
Foundations Want Partners, Not Check Writers
Many foundations are eager to work with the private sector, seeing the potential to create sustainable models beyond grant funding. International development is abuzz with ideas to “unlock” or “crowd-in” private sector funding. There is recognition that both sides have something to gain and something to offer. The funding that is unlocked is expected to be commercial capital—not philanthropic.
Show me (not) the money
Here are five things that foundations actually need from corporate partners:
- Implementation partners who can execute programs at scale in hard-to-reach communities. Do you work directly with consumers, patients, or farmers in low-resource settings? Great. Those networks are like gold! What is mundane operational efficiency to you may be the key to unlocking scalable solutions to philanthropy. Funders like Roll Back Malaria (RBM) and the Global Fund work with extractives companies like AngloGold Ashanti to reach rural areas with malaria control products (e.g., bednets, medicines). The companies lower absenteeism while funders gain cost efficient rollout.
- Thought partners who bring industry expertise. Sector-wide strategies require thinking through approaches in partnership with industry actors, regulatory authorities, and even competitors. Philanthropy is eager to work with companies that see the bigger picture to find collaborative and innovative solutions. They also look for leaders willing to speak out and help move their industry towards better outcomes. The Ellen Macarthur Foundation has teamed up with CATL, the world’s largest EV battery manufacturer to build an “ecosystem of cross-industrial partners to develop and implement a blueprint for battery circularity.”
- Subject matter experts with deep technical knowledge in specialized areas. Foundations have pressure to keep their staff lean and direct resources towards giving. This means that they benefit greatly from partnering with organizations that can complement their knowledge with deep expertise in specific areas or geographies. Don't assume foundations understand what you do internally. Explain your capabilities in the context of their challenges.
- Trustworthy Customers who can provide long-term purchasing commitments to support micro and small businesses. One of your most potent tools is the purchasing power of your supply chain. Long term contracts, particularly in low-income geographies, can provide the leverage needed to justify investments in systems change. Whether it is an advanced market commitment to purchase regeneratively grown crops, or targets for gender diverse supply chains, companies can support innovation for social and environmental impact. Alphabet, Stripe, and a handful of other tech companies developed a facility to buy $1B+ of permanent carbon removal by 2030. This commitment provides the guaranteed offtake for investment in technologies. Imagine the power of adding philanthropic or concessional capital to the equation to ensure the benefits of the AMC reach at-risk communities.
- Co-funders who pair financial contribution with operational engagement. While philanthropy isn’t looking for money (they have endowments for that), co-funding projects can show that you have “skin in the game” and will be a continuous partner. This funding can take the form of in-kind donations as well as direct financing. A great example of this is the recently announced STEP up for Agriculture initiative from PepsiCo and Unilever, a multistakeholder effort to scale regenerative farming. It leverages industry players’ funding alongside philanthropic funding to ensure long term sustainability
The companies that partner successfully with foundations understand their philanthropic value proposition.
The Path Forward
The $40 billion funding gap left by USAID and other rich government funders creates an unprecedented opportunity for companies and foundations to collaborate on shared goals.
Corporate teams that secure foundation partnerships will strengthen their companies’ ability to mitigate risk and open new markets. To be successful, invest in groundwork. Craft compelling value propositions. Understand what foundations actually need from corporate partners, and remain flexible and transparent.
In our next article, we will explore how companies can get started and ensure they are ready to partner with philanthropy.
Resonance is an award-winning sustainability and impact advisory firm specializing in partnership design, management, and measurement. We work with leading companies, governments, and philanthropies to deliver impact and advance sustainable prosperity for all. Contact us to discuss your foundation partnership strategy.
Author: Rebecca Meisels is a Principal at Resonance with 20 years of experience across commercial and impact roles in the private sector. She has delivered double-digit growth to emerging market businesses and supported large philanthropies to understand build partnership strategies with private industry. Rebecca is based in Nairobi, Kenya.
