Brands and Charities – what to consider when joining forces

What should brands and charities focus on when working together? What are the benefits? And what are the pitfalls to avoid? In this two part series we will be outlining key considerations for both brands and charities. Part one will focus on some of the benefits and risks that come with collaborations, whereas part two is aimed at charities, and outlines key points for them to consider when collaborating with a brand.

Benefits of collaboration between brands and charities

Successful collaborations can offer win-win scenarios for both the charity and the brand. We've set out some of the benefits below.

Fundraising

A collaboration with a brand can help a charity with its fundraising aims. There are a number of different ways this can work: a brand may make a one-off donation, or more often than not agree to donate a percentage of its sales or enter into a longer-term partnership with the brand specifically raising money for that charity over a number of years.

Depending on how the collaboration is structured the brand may be a "commercial participator," meaning that specific charity law would apply to both the charity and brand under the Charities Act 1992 and the Fund-Raising Regulations 1994. This requires the charity and brand to, for example, enter into an agreement to ensure the basic terms of the collaboration are agreed from the outset and that the public is fully informed of the benefit the charity is entitled to receive from the collaboration. We expand on these requirements in more detail in our second article.

One example of a successful collaboration is the relationship between Cadbury’s and Alzheimer's Research UK – earlier this year, Cadbury released limited-edition Dairy Milk bars featuring iconic packaging from 1915 to the present day along with the charity's logo and donated £200,000 to the charity in support of the search for a cure for dementia.

An example of a longer-term collaboration is that of Tesco and Diabetes UK who, in 2023, celebrated a 10 year partnership "helping you to live healthier", involving multiple joint campaigns, alongside fundraising programmes for Diabetes UK and a joint initiative delivering specialist training to Tesco pharmacists to support their customers. The partnership has raised over £25m, engaged millions of customers and delivered health initiatives and interventions. It is a successful example of a partnership which has significant benefits for the brand, the charity as well as the people they serve.

Public engagement and awareness

Today, more than ever before, consumers are highly conscious of the ethics and values of a brand. Partnering with a charity can help brands engage the public, as well as employees, who see the brand taking its social responsibility seriously.

For charities, having the support of a high-profile brand can do a great deal to promote a charity or cause, increase wider awareness and help the charity to reach new audiences.

For example, a collaboration between Innocent and Age UK encouraged members of the public to knit hats for Innocent's smoothie bottles and resulted in over 1.5 million hats being made in 2022. With 25p of every behatted bottle donated, the overall success of the campaign has resulted in near-iconic status for these bottles and just under £3 million being raised for the charity.

Charity work and donating to good causes can significantly affect the public's perception of an individual's personal brand. When it was revealed that Dolly Parton had donated upwards of $1 million to the development of the Moderna vaccine to fight Covid-19, the singer was hailed a 'pandemic hero' in the press and on social media.

It's key that charities and brands consider the potential benefits that a collaboration might have on their public profile alongside any potential risks, highlighted in more detail below, before entering into a collaboration.

Risks charities and brands should be alive to when considering a collaboration

Collaborations offer numerous benefits to brands and charities but there are some risks to consider before working together.

Reputation

It’s key for both brands and charities to do full and robust research before agreeing a tie-up, as any brand tie-in could involve potential reputational risks to both the brand and charity. This could arise, for example, if a brand or charity start out with similar aims – such as environmental sustainability – but later one of them undertakes activities that aren't considered by the other party to remain consistent within those aims. The reputation of the brand and charity could potentially be ruined overnight.

A partnership should also be subject to on-going reviews, with transparency at the forefront. The Charity Commission has in the past criticised charities for not being sufficiently transparent in connection with their commercial agreements and recommended trustees to review agreements to ensure they continue to be in the best interests of their charity. It's important that charity trustees comply with their legal duties and this involves putting suitable legal agreements for these arrangements which will help to mitigate risk and protect the reputation of their charity.

Aligned goals

It’s important to make sure that the values and goals of both the brand and the charity align – there is no point collaborating where the end visions are different, or the routes to get there do not match. It can otherwise lead to a breakdown of the relationship and potentially a very public falling out.

Alienating members and the public

There’s a risk that a collaboration might alienate members of a charity or the broader public. For example, there has been controversy in the past when fast-food companies have teamed up with cancer charities.

Such challenges highlight the importance of choosing a charity partner whose objectives align with a brand's values and practices in order to avoid allegations which can be damaging to a brand's reputation.

Conclusion

A partnership between a brand and charity can be mutually beneficial. They are an effective way to promote and raise awareness of a specific cause, and a brand can benefit from better public engagement and higher sales. However, as with any collaboration, they require careful consideration and management. When executed thoughtfully, these partnerships can create a win-win scenario that not only benefits the brand and the charity but also makes a positive impact on society.

Our next article outlines the key things charities should consider when collaborating with a brand.

If you would like to speak to our Brands and Charities experts on potential partnerships or collaborations either with a brand or a charity, please do get in touch.