How are people’s and companies’ attitudes to giving changing? What levers can motivate and encourage them? In the current panorama, sustainability and collaboration with NPOs are certainly strategic levers for Italian companies. Despite some critical issues, profit-nonprofit partnerships seem destined to grow and evolve towards more structured and integrated models.
This is the picture that emerges from the Donations Observatory, carried out annually by Eumetra in collaboration with WaldenLab. The Observatory provides an in-depth analysis of the current and future orientation of solidarity and giving in Italy and monitors the changes taking place both in the private sphere and among companies. This year, for the first time, the Observatory will be extended to the rest of Europe, including France, Germany, Spain and the UK.
Sustainability as a strategic value
The survey confirms that sustainability is an increasingly central value for SMEs and large companies (81%, including 36% ‘very much’). This is reflected in greater integration into corporate strategies and operations, more direct involvement of employees and increased awareness among top management.
Initiatives focus on both social aspects (employee welfare and community support) and environmental aspects (improved production processes and environmental management).
Working with NPOs is seen as an integral part of the sustainability strategy, overcoming the logic of isolated initiatives of the past.
Partnerships with NPOs: a consolidated experience
Partnerships between enterprises and non-profit organisations appear to be a consolidated experience, with the majority of enterprises reporting collaborations that have been active for more than five years and an average of two ongoing projects. The focus is mainly on local and territorial initiatives (52%), a choice that reflects the deep roots of SMEs in the Italian economic fabric.
Among the areas of intervention, medical and scientific research stands out with 33% of preferences and activities to combat social hardship with 30%. Commitment to environmental protection is also significant (22%), followed by cultural intervention (16%) and the protection of artistic heritage (11%). These data highlight the diversification of the areas of cooperation, all of which aim to have a positive impact on the community and the territory.
Areas of collaboration with NPOs
Source: Donations Observatory, Eumetra-WaldenLab, 2023, % values
Drivers, impacts and critical issues in for-profit-nonprofit collaborations
When companies decide to work with NPOs, the main factor influencing their decision is the consistency with the company’s values and mission (73%). This is followed by the good reputation of the NPO (51%) and the link with the territory where the company operates (35%), which reflects a focus on local roots.
The criteria for selecting NPOs
Source: Donations Observatory, Eumetra-WaldenLab, 2023, % values
Partnerships are viewed positively in a number of ways. Among the most obvious benefits, companies report improved community relations, a positive impact on the company’s internal climate, and a strengthening of its overall reputation. However, the impact on financial performance and competitiveness is more marginal.
Satisfaction with these partnerships is almost unanimous: 95 per cent of companies say they are satisfied and 92 per cent intend to continue along this path, expanding partnerships into new areas such as medical-scientific research, environmental protection and culture.
However, there is no shortage of critical issues. One of the most important is the lack of tools to assess the impact of initiatives, which often lack structured measurement. In addition, companies tend to prioritise internal communication (85%) over external communication, which receives less attention (44%), limiting the public visibility of collaborations.
These elements point to growth potential to make partnerships even more effective and strategic.