News

Good news! Researching companies is easier than researching people. We do not have to pursue the (sometimes) lengthy process of wealth assessment and propensity to give. We simply take a look at the latest set of company accounts to identify whether that company has the ability to support our organization. We do not have to scan a mass of websites or press articles to establish past support to charitable organizations. Unlike individuals, who might give quietly or anonymously, companies generally like to demonstrate clearly the philanthropic or sponsorship support which they make to charities.

A simple and accessible selection of tools is all that is needed to conduct effective research into companies. In the first instance these tools can be the Internet and a telephone. Before we begin our whistle-stop tour of researching corporate funders, it is a good idea to take a step back to ask the following questions:

• What kind of corporate support are we seeking: in-kind gifts; pro-bono work; corporate donation, corporate partnership or sponsorship?
• Do we have the infrastructure/systems/staff in place to offer an appropriate level of accountability, stewardship and benefits to a potential corporate benefactor?
• What is it about our organisation that will particularly appeal to this company? Clearly identify where the ‘fit’ lies before picking up that phone to sell your project.
• Have we allowed enough lead-up time to secure funding for our project? If we need sponsorship for a conference which is being staged next month, then the answer is likely to be NO!

There is another important element to company research. Many organisations today are concerned about the risks of associating with a particular company. It might be because of their involvement in the arms trade, their turnover from tobacco, or their human rights record. Or you may be researching companies where there will be beneficial associations between your brand and theirs. If these are important considerations, now is the time to add another question to our list:

• Are we comfortable aligning our organisation with a particular company and its brands?

Answers to these questions should set us on the right path to identifying and researching companies who have the potential to support our organisation. The art of good corporate research, particularly in the early stages, is brevity – less information is definitely more. When initially considering an approach to a company it is important to establish several key pieces of information:

• Accurate and current contact information to include:
  i. Primary contact name, job title and direct telephone number
  ii. Full company name, address, switchboard number and website
  iii. The company’s registration number; this helps us distinguish the company from the others with similar names
• Other key personnel, typically Chairman and Chief Executive
• Brief description of the company’s activities including key subsidiaries and brands
• Financial information to include:
  i. Turnover/sales
  ii. Pre-tax profit or loss
  iii. Share price
• Brief description of the company’s corporate giving policy to include:
  i. What (if any) is the company’s corporate giving policy?
  ii. How much does the company typically give on an annual basis?
  iii. Does the company have a separate grant-making foundation?
  iv. Who are the recipients of the company’s philanthropy?
  v. What (if any) is the company’s sponsorship policy?
  vi. How much does the company commit to sponsorship?
  vii. What projects does the company sponsor?

This information should equip a fundraiser with enough information to make an informed decision about whether or not to add the company to her prospect list and formulate an appropriate research and cultivation strategy.

So, where do we find these generous companies? It’s all about knowing where to look. The list which follows, although by no means exhaustive, offers signposts along the ever-changing highway which is prospect research….

• Look within your organisation – With which companies are your board members/governors/senior staff/volunteers involved? These connections should be exploited as fully as possible and they present an excellent opportunity for your stakeholders to really engage with their organisation.
• Business in the Community – BiTC has a membership of more than 700 national companies. These companies have ‘earned their stripes’ by demonstrating socially responsible behaviour and are, therefore likely to understand an approach from you on behalf of your charity. The BiTC website lists all its members and gives basic contact information including websites and switchboard numbers.
• Social Venture Network Europe – SVN is similar to BiTC in that its members are committed to ‘make a significant contribution to solve social and environmental problems locally and globally’. You might also want to investigate SVN America and SVN Asia – more details on the SVN Europe website.
• Press and Media – Publications such as The Financial Times, Marketing, Campaign and PR Week are useful for getting a broader sense of the markets and enable you to monitor which companies are on the ascendant and those which are on the way down. Local press is good for identifying successful companies within your charity’s immediate vicinity.
• Directories – Publications such as DSC’s The Guide to UK Company Giving and the Hollis Sponsorship Yearbook are invaluable for gathering preliminary information on corporate philanthropy and sponsorship. Caritas Data’s Top 3,000 Charities lists company giving to UK charities and DSC’s Trustfunding online is good for identifying those companies which have set up grant-making foundations.
• Annual Reports – These can be divided into three categories:
  i. Quoted companies – their annual reports can usually be accessed via the Internet (Carol and Hoovers are useful) or you can phone the company to request that a report is sent to you via the post.
  ii. Unquoted companies – their annual reports can be purchased from Companies House.
  iii. Non-profit organizations – the donor pages of the annual reports of charities list donations from companies as well as grant-making trusts and individuals and provide a good indication of which companies are engaging in corporate philanthropy.
• Public Libraries – get acquainted with your nearest reference library or business library (here if you are based in London). Libraries come to the rescue when a research tool is financially out of reach or is just needed for a ‘one-off’ research project. You do not need to refer to publications such as Who Owns Whom or Kompass Business Directory on a daily, or even weekly, basis but you might occasionally need to check out the parent company of a potential corporate funder or have to source products when thinking about in-kind gifts.

© Elizabeth Dixon 2005