1. Institute of Fundraising Corporate Fundraising Special Interest Group 6 December 2011

2. Paul Gillespie Good Values Peter Bull HSBC in the Community

3. Today’s presentation: 1. Corporate giving – the climate and key trends 2. HSBC in the Community - an insider’s perspective 3. Five top tips – how to be ‘CR friendly’

4. Corporate giving Climate and trends

5. About Good Values A leading Corporate Responsibility agency working with companies to: Develop and advise on CR and sustainability strategies Create and deliver award-winning Community Investment (CI) programmes Manage NGO selection process for flagship CI programmes Deliver social impacts and a bottom line business return Using our understanding of the corporate world to help charities: Maximise return on investment from fundraising strategies Deliver a step change in high value fundraising e.g. Corporate, Major Donors, Development Boards Develop a compelling brand and case for support

6. Key market insights: P.E.S.T. influencers P S ocial Growth in NGO & consumer power -better co-ordinated & global reach via web. T echnology Media age. Ease and speed of global communication  reach/influence all Questions asked about role of business in society with increasing scrutiny & pressure from myriad of stakeholders (NGO, consumers, government) P olitical “Fall of government, rise of corporations”. Diverting pressure onto companies. E conomic Gained greater power & influence via globalisation & technology revolution. CSR is now an inescapable priority for business leaders Challenge is HOW to respond and proactively achieve long term COMPETITIVE ADVANTAGE

7. Public trust for companies at an all-time low (41% in the UK and just 16% for financial services) Transparency, trust, community and employee welfare is more important to consumers than ever before 75% of Chief Executives report that corporate social responsibility is an essential issue to their business (BiTC, 2010) 90% of employees whose co’s have a CI programme feel proud of their co’s values v’s 56% of those co’s who don’t Companies that consistently manage & measure their corporate responsibility outperformed their FTSE 350 peers in seven out of the last eight years (BiTC, 2010) What this means for companies... Corporate Social Responsibility continues to remain a core issue at boardroom level even in the current economic climate

8. Compliance to Corporate Social Leadership to differentiate Brands/companies need to win hearts and minds Breakthrough CR clutter - creativity, innovation, investment needed More Alliances : confrontation to collaboration : industry partners –tackling social issues : corporate/NGO partnerships Increased Return on Social Investment (ROSI) expectations from CR and CI programmes More £1m+ long term strategic ‘flagship’ CI programmes being created that work nationally and locally What this means for companies...

9. 9 What this means for you... Corporate giving trends (2010): The top 600 companies in the UK ‘invested’ £800 million in the community, including over £500 million cash Cash invested stayed on par with previous year with significant increases in TIK/GIK (corporate volunteering increased 150% between 2008-2010) Usual suspects continue to dominate all areas of giving and CSR market (top 25 contribute in excess of £300m = 32% of overall market) Between 60-70 companies ‘give’ consistently in excess of £1m pa Top giving sectors (by total contribution) continue to be: Banks and financial services Supermarkets Utilities Pharmaceuticals

10. Corporate fundraising (now & the future): Still viewed as ‘real’ growth area and increasing resources allocated Six charities have sustained in excess of £5m corporate income across the past five years (strong brands, highly emotive causes) Five out of the top six involve ‘leadership’ – e.g. Corporate Development Group to deliver sustainable income Increasingly compelling commercial ‘cases for support’ that deliver greater measurable value (social impact, business return) For smaller charities – half of Fundraising Directors report a reduction in corporate income, whilst a third report an increase (Good Values survey 2011) 10 What this means for you... The most successful charities understand market changes and respond appropriately with a sound strategy

11. What this means for you... Successful NGO’s are demonstrating to companies that: Their ‘cause heartland’ has a strong strategic business fit They can offer ‘real’ differentiation and standout They provide marketing & PR support across all channels including social media They can measure the long term impact of their programmes and create a ‘legacy’ They have a track record of professional business partnerships – with outstanding stewardship 11

12. HSBC in the Community An insider’s perspective

13. Counter public negative opinion and reinforce company values Influence the public and key opinion formers Positively contribute to brand image, marketing & communications Business benefits – employee engagement and skills development Make our employees proud Why we do community programmes

14. What we were looking for in a flagship partner

15. Well-known charity? Or one where corporate can really make a difference Operations that mirror company’s geographical coverage Programme more important than the partner’s name? Focus of cause area must fit corporate aspirations It’s all in the name... or is it?

16. Not too big... not too small... but just right Big enough investment to make a real difference But not so big that the charity is over dependent The Goldilocks theory

17. Show me the numbers! Easily communicated outputs and impacts Breadth (large numbers) and depth (best in class models for a multiplier effect)

18. It’s all about people Contacts that exist before the deal The ‘pitch’ team Who will be working together? Keen, knowledgeable, passionate, professional, personable, responsive

19. How can the work outlive the partnership? Leverage – and legacy How can the partnership itself enhance the NGO’s longer-term future? All good things come to an end

20. The process

21. Project initiation HSBC plan to create new community programme Desired results - greater impact for society & business Good Values hired to create initiative & lead process using ROSI Model

22. Return on Social Investment (ROSI) Model TM

23. Project initiation HSBC plan to create new community programme Desired results - greater impact for society & business Good Values hired to create initiative & lead process using ROSI Model Define cause area Health check: stakeholder engagement, societal needs, competitor benchmarking Ideation: cause areas, community ideas, strategy development Testing: Cross function workshop, quantitative/qualitative research, think tank

24. © 2010 good values Identifying the BIG cause idea Fits with brand, organisation and objectives Societal impact - meets a clear societal need Relevant and emotive to stakeholders BIG CAUSE IDEA

25. Project initiation HSBC plan to create new community programme Desired results - greater impact for society & business Good Values hired to create initiative & lead process using ROSI Model Define cause area Health check: stakeholder engagement, societal needs, competitor benchmarking Ideation: cause areas, community ideas, strategy development Testing: Cross function workshop, quantitative/qualitative research, think tank Partner selection Desk research & face-to-face meetings (20+ charities) RFI (17), RFP (5), both reviewed against criteria matrix plus due diligence Three charities invited to final face-to-face pitch with HSBC and Good Values

26. Scoring matrix Good Values robust selection criteria included: A total of 39 categories Five mandatory elements Strategic direction, scale, experience, reputation Programme assessment Account management/ability to work with

27. Project initiation HSBC plan to create new community programme Desired results - greater impact for society & business Good Values hired to create initiative & lead process using ROSI Model Define cause area Health check: stakeholder engagement, societal needs, competitor benchmarking Ideation: cause areas, community ideas, strategy development Testing: Cross function workshop, quantitative/qualitative research, think tank Partner selection Desk research & face-to-face meetings (20+ charities) RFI (17), RFP (5), both reviewed against criteria matrix plus due diligence Three charities invited to final face-to-face pitch with HSBC and Good Values Final negotiations Define programme Agree contracts Implementation and partnership management

28. Five top tips for being ‘CR friendly’

29. 1. Think ‘stand out’ The 26,000 factor - truly differentiate yourself Be brave and innovative Utilise all media channels including social media

30. 2. Put yourself in the company’s shoes Strategic and values relevance Think win-win Sector exclusivity How will this deliver ROSI?

31. 3. Ensure your proposition is truly compelling Make the corporate feel ‘special’ How will a CI investment change society? New vs. ongoing work - positioning

32. 4. Get the chemistry right Show you will be a great partner First impressions count, but play for long term People give to people

33. 5. Pay attention to the basics... Win over the agency as well as the company Answer the brief Deliver on time