Giving back to the community

I can't help but address the topic of giving back during this holiday season. In some way, it should be part of your business's public relations plan because the Truckee Meadows has been good to many of our businesses. With the right strategy, your small business could make a big difference to a nonprofit that is improving our community. And your company will benefit as well.

Consumers are really expecting corporations to do good things and charitable partnerships are becoming standard business practice. According to the 2005 "PR Week" Cause Survey, 45 percent of corporations expect their budgets dedicated to non-profit partnerships to increase this year. And the majority of respondents (78 percent) felt that such partnerships are a necessary practice in today's competitive landscape both for marketing to customers and recruiting employees.

There are many reasons why many businesses shy away from corporate philanthropy. Do you think your business is just too small, or not profitable enough to consider a charitable program? Thanks to several common myths, many business owners have a hard time figuring out how to start a charitable-giving program in their companies. I will begin by addressing some misconceptions.

No.1: Charities need cash. How can a cash-strapped business offer any help?

Although nonprofits can always use money, many have equally pressing needs for equipment (especially office equipment such as computers and fax machines), food and clothing, and volunteers. Those volunteers might range from people who can spend an hour reading to children, to executives who can offer business-management skills.

The important thing to remember is that you can get involved through your products, through your time, or through your or your company's cash. If cash gifts aren't an option, look for alternatives such as donations of equipment or inventory, or programs that promote employee or customer involvement.

No. 2: If your company is small, it can't possibly make a significant impact for a non-profit.

If you target your involvement to small programs within our community, you'll be able to have a notable impact, often quite quickly. There are reading and book programs, tutoring, computer programs for seniors and low-income families, food for the hungry and lots more. I have found a contribution of $1,500 can make a significant impact on a stand-alone program. Consider targeting small organizations whose needs fit your company's scope and let gift giving grow along with your business. Look for ways that your employees who want to help can do so.

No. 3: You'd like to be part of a high-profile charitable drive, but you worry that the organizers will pay attention only to companies with big names and big bucks.

That's changing, in part because of a recent trend among nonprofits to look for ways to form partnerships with both large and small companies. A good example is last fall's Dine Across America program, a fund-raising effort for Share Our Strength, a national anti-hunger nonprofit. American Express and some other big companies covered the program's expenses for administration, advertising, and the like. That helped the small companies that participated largely restaurants and food wholesalers to channel all the money they raised directly to the needy.

Investigate your joint-venture options by contacting large nonprofits that appeal to your interests. Also ask your trade association or chamber of commerce about relevant national and regional drives.

No. 4: Selecting a charity, program, or cause and the evaluation effort can be daunting.

When you're looking for ways to give back, the opportunities and options can be overwhelming. You might first consider nonprofits that share similar interests and demographics as your customers. Also, ask your employees to submit ideas and form a committee to review submissions. The process may create buy-in and excitement within the company. Based on the Better Business Bureau's Wise Giving Guide, five key areas need to be evaluated to determine the right partner for you. They are: mission and values of the organization, financials, board governance, operational efficiency and organizational strength.

These Web-based resources can help focus your charitable activities in ways that are meaningful for you -- and for your company. Gifts In Kind International (www.giftsinkind.org) serves as an intermediary, collecting clothing, office technology, building equipment, and other useful materials and then distributing them to more than 50,000 nonprofits and schools nationwide. The Better Business Bureau Wise Giving Alliance offers guidance to donors on making informed giving decisions through charity evaluations, various publications and publishes the Wise Giving Guide available at www.give.org.

No. 5: What is/isn't deductible. After all, your business should benefit in some way.

Did you know that ... although the IRS recognizes more than 20 kinds of nonprofit organizations, not all of them are eligible for fully tax-deductible gifts? Generally, the best tax benefits are available for gifts to those nonprofits classified by the IRS as "public charities." You can identify a public charity by requesting a copy of its 501(c)(3) documentation, issued by the IRS. Other nonprofit organizations, such as civic leagues or private foundations, are not deemed to provide benefits for the whole public.

What about donations of equipment or goods? In general, if the goods are new, you can deduct their fair-market value, within the relevant limits. Consult your accountant before making any donations or claims on gifts of inventory or used equipment, because the rules are complex.

No. 6. Can you really expect to receive media coverage of your charitable efforts?

The answer is a resounding no, if you don't get started in some kind of charitable effort. It is also no, if you don't let the media know. You will notice in almost every form of media this time of year that all media is looking for feel-good stories. So, let them know what you are doing.

Finally, partnering with a nonprofit can provide a company with not only an enhanced company image but also the process can be fulfilling to your employees. Careful attention to the process of choosing your charity and then managing the donation or partnership will provide your company with the public relations goals you are looking for, as well as having a positive impact on your non-profit partner, and your community.

Marlene Olsen is president of olsen & associates public relations, creative collaborations, etc., in Reno. Contact her at molsen@o-apr.com