As business leaders, we're often asked to
donate to charity.Whether it's in the form of
personal contributions, direct corporate giving
or corporate sponsorship, we receive
requests on a regular basis.
Having served the non-profit sector for 18
years, I'm continually involved with corporate
giving, either as a business owner or charitable
staff/volunteer. I'm frequently asked why
businesses are called upon as often as they
are.What I've grown to understand are two
primary reasons:
* Business leaders have direct access to
marketing, advertising and charitable budget
line items.
* Business leaders understand non-profits
and, in many cases, serve on non-profit
boards.
As a result of recent economic pressures,
business leaders are taking a closer look at
their charitable giving activities. Some are
decreasing their contributions, and some
aren't giving at all. Interestingly, a growing
number are developing strategic giving plans
as a means of showing strength, representing
goodwill and leveraging their giving to
increase business.
In a report issued by The Economist in
January 2008, 56 percent of global corporate
leaders ranked corporate responsibility as a
priority, an increase from 34 percent in 2005.
The same survey revealed that 54 percent
agreed that corporate responsibility is a necessary
cost of doing business. Further
research found through a 2006 New York
University study reported "consistent evidence
that, for firms in industries that are
highly sensitive to consumer perception, corporate
giving is associated with subsequent
sales growth." In fact, these same businesses
realized a return of $6 for every dollar contributed
to non-profit organizations.
There are many reasons why corporate
leaders invest in charitable organizations.
During these difficult economic times, it
makes even more sense. Businesses have an
opportunity to make a difference and a dollar.
Strong corporations invest in not-forprofit
efforts to:
* Recognize and celebrate its corporate
values
* Emphasize the importance of ethical
business practices
* Provide positive public relations
* Build customer confidence
* Enhance employee morale
* Maintain philanthropic goodwill
* Increase sales leads and transactions
* Strengthen the community
And, of course, it's the right thing to do.
All of this points to responsibility ... a
responsibility of businesses to increase revenues
and a responsibility to help others.
Positioning corporate giving to be effective
for both the business and the supported
organizations is not a difficult process. It can
be easily blended with existing marketing
strategies or function separately from existing
plans. Regardless of its official capacity
within your business, here are suggestions to
maximize your corporate giving.
Assess current giving. Take a good, hard
look at your past and current giving practices.
What percentage of pre-tax profits is
allocated for charitable pursuits? Review the
organizations, purposes and methods of giving;
then evaluate the benefits received. Can
you identify a relationship to your corporate
mission, marketing plan and staff connections?
Design a strategy.As you plan your giving,
consider your charitable budget. Identify
the projects, organizations or sectors you
wish to support. Determine the benefits, particularly
outreach, sales leads, visibility and
impact you wish to gain.
Monitor contributions. Maintain relationships
with the beneficiaries of your charitable
investment to ensure proper delivery of
benefits, use of funds and public awareness.
Assess and plan. Evaluate the effectiveness
of the giving strategy and its execution.
Make changes, design a new strategy, identify
new beneficiaries; all are actions you will
likely address to strengthen your charitable
giving plan.
Corporate leaders recognize the difficulty
in giving away money, particularly marked by
a lack of information, guidance and tools
required to make wise decisions. Being able
to identify the best for-profit investments is a
hugely valuable talent and a massive industry
has grown up around it. Solid nonprofit
analysis is just as valuable.
No matter what strategy you use to make
your charitable giving decisions, it makes
good business sense to ensure effectiveness,
both to the beneficiary and your corporation.
A properly executed giving program will generate
tremendous value through community
impact and revenue generation.
