Tree Shaker :: MediaVision USA

When The Verizon Foundation recently announced its award of $2.2 million for an after school program to the National Council of La Raza and the National Urban League, it provided standard fare for the typical corporate press release.

Congratulatory praise for Verizon and its signature educational initiative, Thinkfinity.org. Verizon benefits in the eyes of its customers, investors, and media from associating its brand with those of the National Urban League and National Council of La Raza, worth far more in free media and advertising than the grant. The Urban League and La Raza walk away with a piddling $2.2 million in cash or educational resources.

As the philanthropic arm for Verizon Communications, the foundation’s business model did not require positive publicity as much as its corporate parent.

Thousands of corporations use foundation entities to polish their corporate brands, which too often lobby —far more well-financed and influential operations than their philanthropic arms—- against the very public policies that would benefit their nonprofit charitable recipients.

It is hardly a secret that Verizon has joined other cable and phone companies that aggressively lobby against Net Neutrality, the pending legislation that would insure the continuation of an accessible, level, and affordable playing field for all Internet users (including those children in after school programs, especially in low-income communities). For two iconic national organizations in both the African American and Hispanic communities, the $2.2 million award is striking in its miniaturized form. Publicizing this award would appear to be more of a PR deficit than an asset. It draws attention to disparity in diverse communities and organizations, and to corporations who buy good will on the cheap while spending many more millions lobbying against the interest of those organizations— and customers to which they are bonded.

But what heartless creature could be against $2.2 million for after-school education for children? No one –if the bar is set so low.

To be fair, The Verizon Foundation has an impressive philanthropic track record. It awarded about $10.4 million last year to nonprofit groups in New York State alone, with $76.4 million to nonprofits nationwide. Yet the impact of these dollars, spread in relatively small amounts across a vast terrain of overtaxed organizations, is minimal.

Both corporations and nonprofit organizations should move away from the old model of charitable parent and needy recipient and adopt a new model of co-branding alliances. Co-branding offers opportunity for equitable business relationships of mutual benefit, discarding the paternalism of parent giving to needy recipient.

Unless you are ValuJet or Enron, all brands have value. We accept this about corporations and other private entities. It is long overdue to accept the same about nonprofits with solid reputations, credibility, identity - and constituencies that are existing or potentially new customers.

Bigger outcomes are possible with real partnerships or alliances that deploy the brand power of both corporate and nonprofit entities, building strategic relationships based on mutual business interests.

Instead of only using their philanthropic arms, corporations could partner with compatible nonprofits, and co-brand in corporate advertising, merchandise, customer services, and philanthropy that would add robust value to corporate brands and provide significantly more financial resources to nonprofits. But that means adopting a business strategy that absorbs philanthropic investments along with other operational expenses and investments. These strategic business relationships offer unlimited potential, particularly during a growing recession and other meltdowns in the economy when customers will gravitate and bond long-term with companies that show leadership in business and community.

For that to happen, however, a different mind set and strategic approach are imperative. Both sectors could gain extraordinary value if they retire the charitable giving model, and embrace a strategic alliance model where each party brings brand value to the table. Messag: business, not charity.

Tags: Corporate Philanthropy
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