Commercial Partnerships at Board Level in the NFP sector
” how does the Board help to make it happen?”
The NFP sector has grappled with the challenges of a sustainable revenue source to under pin all other casual activity in fund raising.
This critical need for regular revenue is what many NFP organizations class as an operational problem, when in fact its resolution starts in the Boardroom with not just the Finance committee but in fact the whole Board.
In our experience most NFP organizations make it a priority to engage commercial partners that may be able to fund the ongoing work of the organization, but often these engagements are not sustainable or the funds large enough for them to create a strong revenue model.
The Board via its individual director network should therefore have serious input into where commercial partnerships are formed and how they are structured. It is unfortunate that at times Board members do not want to open up their networks to the NFP, but this fear of disturbing the smooth business relationships they have must be overcome. In our experience we have had to help Boards adjust their thinking so that Directors would have an acceptable approach strategy and so feel comfortable with the process of introducing commercial partnerships.
It goes without saying that nowadays more than ever before Commercial Partners want and demand deliverables for their financial support. This is where the management team should work closely with key Board members at defining the benefits that the Commercial Partner will derive from the investment as well as the benefits to the end user of the services provided by the NFP organization.
With this in mind we ask you and your NFP Board:
Does your NFP organisation have the right commercial partners to support your financial needs?
Does your NFP organization have a sustainable Revenue model based on commercial partnerships?
Does your Board have a strategy and implementation plan to “gaining & retaining“strong commercial partnerships?
Call us to find out how to implement models for sustainable revenue!