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Innovation: Catalyst for Corporate Collaboration

Conventional wisdom says that in partnerships between corporations and nonprofits, it’s the company who is the giver and the nonprofit who is the receiver.  But a unique partnership between Heads Up and three well-respected corporations turns conventional wisdom on its ear.  Through their association with Heads Up, the three companies—Scholastic, Inc.; Michaels Stores, a specialty retailer of arts and crafts materials; and Binney & Smith (parent of Crayola)—found a way to work together with each other beyond the traditional buyer/vendor relationship as active partners for a civic purpose.  And Heads Up gained long-term partners who are helping it accomplish its goal of serving young people and families in the nation’s capital. 

Shortly after Heads Up became a VPP investment partner, VPP investor Jack Davies joined its board.  Jack brought with him enthusiasm for Heads Up, corporate connections, and extensive experience in marketing.  One of the first things Jack did was to encourage Scholastic, Inc., on whose board he sits, to help stock Heads Up’s on-site libraries with thousands of donated books.  The donated books not only opened up the joy of reading for more Heads Up students, but the content these materials provided proved a major asset in helping Heads Up transform its curriculum.   

Not long afterward, Heads Up Executive Director Darin McKeever contacted another VPP investor, Richard Hanlon, who had once worked with Jack at AOL and sits on the board of Michaels.  Darin was hoping to secure product donations to support Heads Up programming.  As it happened, Richard had been thinking of ways that Michaels could be more involved in their communities.  He approached Michaels, which generously agreed to donate craft products to enrich Heads Up after-school and summer camp programs.  It also offered training at two local stores to Heads Up summer instructors about ways to use the products with children.  The trainings were a hit.  Store managers and employees loved the interaction.  Heads Up took the crafts further, developing a collection of curricula that connected the stories in Scholastic Books with Michaels’ crafts supplies.  After reading a book together, the kids would craft a series of products that helped to bring the tale to life.

Darin showed Richard a few of these kits—the book, the curriculum, the list of required craft items, and assembly instructions.  Impressed by the success of these kits with DC youth, Richard felt that these kits should be available on a wider basis.  He took the concept to Michaels, which enthusiastically agreed to pursue it, assigning it one of their top buyers.  Michaels then approached Binney & Smith/Crayola about providing crayons, as well as creating the packaging for the books, crafts, and Heads Up curricula.  The Read and Create Craft Packs were born.

In late 2004, the Craft Packs hit Michaels Stores for a market test.  In the first four weeks, 600 Craft Packs were sold, twice the average sales rate for Crayola’s product offerings.  Each of the corporate partners donated 25 cents of the unit sale price to Heads Up.  But the real value for Heads Up is its expanded network of supporters who are providing not only financial help but advice, goods and services that strengthen its programming.  The collaboration also demonstrates the tremendous value that nonprofits have to offer corporations.  The Heads Up curricula brought the crafts, the reading, and crayons together, something the three companies had been exploring themselves but without success.

The Craft Packs are being sold by Michaels Stores for the 2005 holiday season. All of the parties involved are exploring ways to develop a whole product line based on Heads Up's curricula.  Scholastic and Crayola would provide product, Michaels would provide retail space and promotion, and Heads Up would receive both the branding and a significant piece of the revenue.  And, with the relationship with Michaels now established, there are interesting opportunities for events, products, and other activities that would involve the creativity of the Heads Up staff and the children they serve.



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