Make Giving Part of Your Business Strategy

(page 3 of 3)

SPECIAL REPORT

Corporate Philanthropy

• Make Giving Part of Your Business Strategy
• Pro Bono Work for Entrepreneurs
• Partnering with a Cause
• Book Shelf: Good for Them, Good for You
• Quark Founder Tim Gill On Giving
• Slide Show: Why Leading Entrepreneurs Give
• Video: Small Business Volunteering

A client's melanoma diagnosis insipired Linkow RAY NG

Turpin gives you local nonprofits that support the arts COLBE LYSNE

Conti donates monthly to New York's Partnership for the Homeless JORDAN HOLLENDER

Story Tools

• post a comment
• e-mail this story
• print this story
• order a reprint
• suggest a story
• digg this
• save to del.icio.us

If you've chosen an organization you don't already have a relationship with, start building one by contacting either the development director or the executive director, depending on the size of the nonprofit, says Hyatt. If you know someone on the board, start there. Or, if you want to support a specific program, reach out to the program director. Although the frequency of your contact will vary depending on what kind of support you plan to offer, plan on a minimum of quarterly updates. This will give you a chance to explore future opportunities and evaluate the impact of past giving. "You want to create new opportunities, not show up and deliver a check," says Hyatt.

It's important to start small. As your business grows, or shrinks, you can adjust your giving accordingly. Decide where the donations will come from in your budget, whether it's human resources, public relations, or marketing. Appoint a person in the company to monitor these efforts, making sure that the work is recognized as part of their job duties.

You'll also want to think about how to celebrate your success. There is a fine line between good marketing and appearing self-serving, and the instinct may be to resist saying anything. But remember, most customers want to do business with companies that do good, says Hyatt. "Clients like the fact that you give something back," says Turpin. "Over the years, as one person gets to know you, they tell others. It brings your name up in front of important people. I sit on the boards of many of my nonprofit clients, and I know I've gotten business out of the relationships I've made there with other executives."

Turpin has also found that her charitable activities have boosted employee morale and retention. The average tenure at River City is eight years, a long time for a small advertising business where there aren't ample opportunities to grow. "I believe our culture, including our philanthropy, is truly what keeps people here," says Turpin.

If broadcasting your own work is off-putting, ask your nonprofit partner to send out a press release, or include a page on your company Web site that discusses your program. But don't be too shy. "We choose our annual giving day very specifically," says Linkow. "The first Monday in May is considered Melanoma Monday nationally, so we either do the Sunday before or after that in order to maximize our media exposure." And the event has helped increase his customer base. "We have an 85% retention rate as a salon, which is very high," Linkow says. "Our problem isn't keeping clients, it's getting new business into the salon. The event does that."

GIVING IN A RECESSION

An economic downturn doesn't have to mean that your giving stalls. For some businesses, just the opposite is true. Conti, for example, cuts back on the number of apartments she maintains during a recession, leaving her with more furniture to donate.

Even if you don't suddenly have excess inventory, you can still give as the economy contracts. If you need simple tasks done in the office, you could partner with a local nonprofit that offers skills development to underprivileged youth or disabled people. You might offer something as basic as the free use of your conference rooms. If you're launching a business promotion, look for a charitable tie-in. Linkow, for example, wanted to ramp up sales of certain items, so he offered customers a discount on new products if they traded in old ones. He then donated the old products to cosmetology schools where students can use them to practice on mannequins. "We don't write checks. In these economic times, money is too tight to be giving it away," says Linkow. "But it's not only money that can make a significant difference in the community and in people's lives." He, and other philanthropically minded small business owners, prove that every day.

Choi is a staff writer for BusinessWeek SmallBiz in New York.