Partnerships between companies and charities are increasingly longer-term, higher-value and more strategic, according to a report by the consultancy C&E Advisory.

C&E’s annual Corporate-NGO Partnerships Barometer  shows a 12 per cent rise this year in the proportion of charities saying that their various partnerships with companies are worth more than £10m a year in total. 

The barometer, the fifth in the series, is based on a poll of 130 companies and charities, split 53 per cent and 45 per cent respectively, with 2 per cent of respondents categorised as ‘others’, including corporate foundations and international non-profit agencies.    

Of the charities that responded to the online survey this summer, 22 per cent said their organisation secures corporate partnerships totalling more than £10m a year, an increase of 12 per cent compared to last year’s survey.

Thirty-two per cent of respondents said their partnerships were worth £1m or less a year, but this was down 14 per cent on 2013.

Of the companies surveyed, the majority, 33 per cent, said their partnerships were worth more than £10m annually, showing little movement on last year’s results. Companies saying their partnerships were worth £1m or less, were up 13 per cent.

The survey also asked respondents which charity corporate partnerships they most admire – Marks & Spencer and Oxfam came top of the list with 11.1 per cent of the vote, followed by Boots and Macmillan with 7.9 per cent and GSK and Save the Children with 7.1 per cent.

Long-term stability and impact

The report finds both companies and charities are putting greater emphasis on long-term stability and impact of their partnerships, reflecting a greater understanding from both sides of the business potential of partnerships. They are “leveraging each sector’s assets to maximise mutual benefit”, it says.

Asked why their organisation enters into partnerships, 73 per cent of corporates said for long-term stability and impact, as did 71 per cent of NGOs. These findings were up 13 per cent and 15 per cent respectively on 2013.

The report found 90 per cent of all respondents were confident that strategic partnerships were meeting their objectives and delivering value.

Of the companies polled, 59 per cent said their charity partnerships were changing their business practices for the better, up from 46 per cent in 2013. And 87 per cent of corporates believed their charity partners have helped their organisations to better understand social and environmental issues.

The report found there is still a disparity between how charities and corporates perceive the value of non-financial support. Almost half of charities, 48 per cent, acknowledge the impact of non-financial support, which is up 12 per cent from the 2012 figure. This compares to 69 per cent of companies.

Manny Amadi, chief executive of C&E, said: “The wider understanding of the business and mission relevance of cross-sector partnerships is evidence of the maturity of the partnering agenda. No longer just a question of seeking funding or enhancing reputation, partnerships between corporations and NGOs are becoming increasingly important to the business models and strategic aims of both sectors.”

Most admired partnerships 

Amadi said more “truly successful and effective” partnerships now have a mission-led focus, which is illustrated by the report’s most admired partnerships.

M&S and Oxfam’s Shwopping campaign for more sustainable shopping saw customers donate four million garments last year, worth £3.2m to the charity, up £900,000 on the previous year.

The partnership was been named most admired for the fifth year. Andrew Horton, Oxfam’s trading director, said: "The repeated admiration from our peers is a reflection of the depth of thinking and mutual benefit that the partnership brings to Oxfam, Marks & Spencer and the environment, in keeping clothes out of landfill.”

Boots and Macmillan stayed in second place for the third time this year for their brand and mission-led focus on customer and supporter care. The partners have trained more than 1,850 Boots Macmillan information pharmacists and more than 200 beauty advisers, who have volunteered for additional training.

Lynda Thomas, interim chief executive at Macmillan Cancer Support, said: “We believe its success lies in the strategic approach, which delivers on both organisations core objectives and is integrated across the whole business. Macmillan strongly believes in the value of innovative and effective partnerships with businesses and is keen to expand this area to help develop modern approaches to supporting people affected by cancer.”

GSK and Save the Children came in third place again after becoming a new entrant in last year’s 'most admired' list. Their initiative to save the lives of a million of the poorest children in the world by combining their organisations’ expertise, resources and influence, received comments including “brave and innovative – a true co-creation”.

Ramil Burden, vice president, Africa and developing countries at GSK, said: “When we launched our partnership just over a year ago, we set out with an ambition to challenge the way the private and not-for-profit sectors can work together to bring about real change for some of the world’s most vulnerable children.”