Forum Brief: Charity and business links

The Charity Commission has published the findings of its research into charity-business partnerships.

The report, "Charities and Commercial Partnerships", is the second in the charity watchdog's series of regulatory reviews examining the state of the nation's charities.

Forum Response: Charity Commission

John Stoker, chief charity commissioner, told ePolitix.com: "With the current trends of fundraising innovation and of corporate social responsibility, it is not surprising that our research has identified plenty of successful commercial partnerships.

"But trustees must take great care to ensure that the risks are minimised and the benefits maximised. An unsuccessful partnership, where stakeholders perceive the charity to have sold out, can damage both its income and profile and have a wider impact on public trust.

"In particular, charities must actively negotiate their contracts, do their homework on their prospective partner and monitor the arrangement regularly. We recommend that trustees consult both publications and, if in doubt, to contact us for guidance."

Forum Response: Guide Dogs for the Blind Association

A spokesman for the Guide Dogs for the Blind Association told ePolitix.com: "There is much in the report that is common sense. Most charities have become increasingly professional in their partnerships with business and commercial development with a much greater awareness and understanding of brand and brand values.

"Changes that have taken place in the charity market place over the last few years have made corporate relationships increasingly important, but all parties must enter them having established realistic objectives, measures and safeguards."

Forum Response: The Prostate Cancer Charity

John Neate, chief executive of The Prostate Cancer Charity, told ePolitix.com: "The Prostate Cancer Charity welcomes the Charity Commission's report as a helpful guide.

"The Prostate Cancer Charity has formed valuable partnerships with companies in a number of sectors. It believes that such links should bring advantages to each partner.

"During the negotiations that lead to the formation of such partnerships the Charity is always mindful of the fact that it is considering lending its name to a commercial organisation and that this will provide endorsement to the company's name and brands. The Charity therefore approaches each and every negotiation with great care and the knowledge that it is responsible for not only its name and reputation but that of the cause that it represents.

"Where a charity operates in a field that links directly with a specific commercial sector it must seek to maintain an even balance in its links and partnerships so that it is not perceived as favouring a particular company."

Forum Response: Cancer Research UK

Jackie Tanner, head of national corporate partnerships at Cancer Research UK, told ePolitix.com: "Cancer Research UK welcomes the publishing of the Charity Commission's report. We support its efforts to promote best practice and the processes required of charities in the development and management of charity-business partnerships and indeed we take great care to comply with those recommendations."

Forum Response: Help the Aged

Anne Grahamslaw, director of fundraising and marketing at Help the Aged, told ePolitix.com: "We welcome the Commission's report. Charities are increasingly recognising the benefits and opportunities of working with businesses and the nature and scope of these relationships are becoming more and more sophisticated. However, to be successful, these should be true partnerships and charities must be aware of the value of their brand with both parties entering into the relationship agreeing what they want to achieve from it.

"For example, Help the Aged has had a hugely successful and award winning relationship with British Gas since 1999 that is based on a strong matching of objectives. Over the years, they have provided support to Help the Aged totalling around £4.3 million, resulting in more than 1.3 million beneficiaries.

"Help the Aged is also about to launch a new partnership with Zurich Community Trust which will help older homeless people, who are some of the most marginalised older people in the country.

"We hope that this report will help other charities develop similarly beneficial and strong corporate relationships by offering advice and highlighting the potential pitfalls."