Organizations must scrutinize their philanthropic behaviours and as such need to ensure they manage the types, benefits and rationale. There are different motivations and types for philanthropy ranging from public purpose partnerships, strategic philanthropy, cause-related marketing, and cause branding.
Public purpose partnerships are made in an effort to reconcile financial an social goals for an organization. This type of philanthropy occurs when a for-profit business enters into a cooperative arrangement with an non-profit organization for their mutual benefit. (Carroll, Archie B, Buchholtz, Ann K (2006), page 487) From the organizational perspective, public purpose partnerships provide an opportunity for simultaneous achievement of economic and philanthropic objects. For example, the McDonalds Corporation and Georgia Institute of Technology entered into such a partnership where McDonalds gave $5.5 million to complete the financing for a sporting complex and in return, McDonalds had their logo on the tickets, on the basketball court and program covers plus other signage.
Strategic philanthropy is form of public purpose partnership whereby it is an approach by which the corporate giving and other philanthropic endeavours of a firm are designed in a way that best fits the organizational mission, vision, goals or objectives. (Carroll, Archie B, Buchholtz, Ann K (2006), page 488) This strategy ensures that the organization only donates or enters into a partnership with another party if the partnership will contribute to the overall organizational plan, which includes profitability. Therefore unlike other philanthropic options, entering into a strategic philanthropic partnership must produce economic success for the organization in a direct or immediate fashion. To achieve the success desired, the program needs to be planned well and managed, thus needs to have clear goals, objectives, connected if possible with other community programs, have a defined...