Giving smartly

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.