In immediately’s aggressive panorama, C-suite leaders are more and more searching for philanthropic initiatives that do extra than simply generate goodwill; they have to ship a measurable return on funding and align with core enterprise aims. The strain is on to show that company giving could be each a robust engine for social change and a strategic driver of enterprise development. A 2025 report by The Convention Board underscores this shift, noting that company citizenship packages at the moment are anticipated to exhibit clear enterprise worth and improve price effectivity [1].
Many for-profit leaders imagine that important grant funding is past their attain, relegated to the world of nonprofits. They typically chase small, inconsistent awards that do little to stabilize their enterprise or assist long-term development. The fact, nonetheless, is that large-scale funding flows by means of nonprofits, and essentially the most strategic manner for for-profits to entry it’s by means of purposeful partnerships.
That is the place the 1-3-5 Technique emerges as a transformative framework for constructing a shared funding ecosystem. It’s a mannequin I’ve used to assist small communities safe hundreds of thousands in funding by structuring collaboration between nonprofits and for-profits. This technique turns company philanthropy from a easy donation right into a sustainable funding in group capability, creating a robust ripple impact of financial and social advantages.
The Downside: Siloed Efforts and Missed Alternatives
In lots of communities, notably smaller or rural ones, nonprofits and for-profits function in separate spheres. Nonprofits typically wrestle with restricted sources, duplicating providers and competing for a similar small pool of funding alternatives. They function in isolation, which funders view as a major threat.
Concurrently, for-profit companies, which possess invaluable experience and providers, are locked out of main grant alternatives as a consequence of eligibility constraints. They lack the tax standing or public function necessities to steer large-scale grant proposals. This siloed method ends in a fragmented ecosystem the place nobody wins. Nonprofits burn out, for-profits miss out on steady income streams, and the group’s wants stay unmet.
The Resolution: A Shared Funding Ecosystem with the 1-3-5 Technique
The 1-3-5 Technique supplies a transparent and coordinated construction that offers each group a task, a lane, and a stake in the neighborhood’s success. It’s not a theoretical idea however a sensible framework for constructing a resilient, year-round funding cycle. Right here’s the way it works:
- One Core Concern: A nonprofit anchor group identifies its single most crucial difficulty.
- Three Key Actions: It focuses on delivering three core actions that instantly tackle that difficulty.
- 5 Strategic Companions: It secures 5 companions—together with for-profit companies—that reinforce and ship these actions.
This construction transforms the nonprofit into an anchor for shared impression, defining who they’re, what they ship, and which companions are important to their success. Funders belief this degree of coordination; they put money into programs that exhibit alignment, not isolation.
How For-Income Plug In: The Vendor and Subgrantee Mannequin
The 1-3-5 Technique opens the one dependable path for companies to take part in main grant-funded work. When a nonprofit leads a grant utility, the for-profit accomplice could be built-in in two main methods:
- As a Vendor: The for-profit enterprise is contracted to supply particular items or providers, paid at a good market fee by means of the grant.
- As a Subgrantee: The for-profit takes duty for delivering an outlined piece of this system’s work, receiving a portion of the grant funds to take action.
Each are reliable, fundable roles that create actual income for the enterprise whereas strengthening the nonprofit’s program. For instance, if a nonprofit targeted on workforce improvement runs a monetary literacy program however lacks experience in credit score restore, it may herald a neighborhood credit score restore enterprise as a subgrantee. The enterprise delivers its specialised service, the nonprofit’s program turns into extra sturdy, the enterprise beneficial properties a steady revenue stream, and the group advantages from enhanced capability.
That is how rural and underserved communities can construct steady funding ecosystems from inside. The technique creates a relentless pipeline of funding, not simply one-off grants or emergency scrambles. As funding cycles transfer, companions rotate by means of lead and assist roles, guaranteeing everybody stays linked and funded.
The ROI for C-Suite Leaders: Past the Backside Line
For C-suite leaders, investing in a 1-3-5 Technique delivers a multi-layered ROI. By encouraging their for-profit companions or subsidiaries to interact on this mannequin, they aren’t simply donating to a trigger; they’re constructing a extra resilient market.
When a for-profit turns into a vital a part of a group’s funding ecosystem, it achieves:
- Repeatable Income: Grant-funded contracts present steady, predictable money move.
- Enhanced Visibility: The enterprise’s model turns into related to group impression and optimistic change.
- Market-Fee Compensation: Companies are paid for, guaranteeing the partnership is commercially viable.
- Measurable Influence: The enterprise’s work is tied to clear knowledge on group enchancment, satisfying stakeholder calls for for accountability.
This mannequin turns company philanthropy right into a strategic device for market improvement. It stabilizes native economies, builds a stronger workforce, and creates a extra vibrant group the place companies can thrive. It’s the final alignment of function and revenue.
Constructing Collectively: The Way forward for Strategic Philanthropy
The 1-3-5 Technique is greater than a funding mannequin; it’s a brand new mind-set about company duty. It calls on leaders to cease struggling alone and begin constructing collectively. By fostering these purposeful partnerships, C-suite executives can guarantee their philanthropic {dollars} aren’t simply spent, however invested in making a shared, sustainable future.
That is how we transfer from checkbook charity to strategic funding. That is how we construct capability in our communities with out ready for out of doors assist. And that is how we create a world the place nonprofits and for-profits work in live performance to unravel our most urgent challenges.
Written by Megan Pater.
