Good Causes
How to Develop a Successful Donation Strategy
The needy, the ill, the associations, the parties –
chances are you’ve had donation requests from all of these groups and
then some. It’s nice to say yes, but realistically you can’t say yes
to every request. Fielding the numerous requests for sponsorships or
donations can become a full-time job. The process can leave you
wondering where and how to draw the line. The fastest way to burn out is by trying to be all things to all people.
Deciding which causes to donate to can be such a complicated and emotional topic. Because of this angst, many companies never get around to drafting a strategy or a policy around giving. Often the result of this inaction is a shotgun approach to giving. We say yes to some and no to others without any sense of how our gifts are benefiting the causes we give to or our businesses. We can take a page from large organizations who have decided to give larger amounts to fewer charities. This approach ensures that their support is making the desired impact and it allows the gifting organization to really focus on something they believe in. You can easily develop a gifting strategy for your business by addressing the following points:
Choose With Conviction
It’s your business that’s making the donation so it’s perfectly reasonable that the benefactor be an organization that is personally relevant to you. Perhaps literacy, children’s causes or cancer research resonate with your conscience? It’s also quite sensible to ensure that the charities you choose to support complement your brand image and the nature of your business. “Forget-me-Nots” have often been used effectively to bring awareness to Alzheimer’s disease. This is a great example of a strong link between business and charity. Once you’ve decided on which causes you will support, this becomes the filter through which all requests must pass.
Set a Budget
You won’t be any help to anyone if your business overspends on donations, so make sure you start each fiscal year with a clear idea as to how much you intend to give. Ask your accountant and financial planner to advise you on how to structure the gifting to maximize benefit to both the recipient and to your business.
Develop a Process
Now that you’ve identified which recipients you will be giving to, defining a procedure for responding to all other requests will make things easier. Some companies actually create an anonymous voice mailbox for all requests to be directed to by reception. The outgoing message will state your corporate policy on gifting. Specify the charities you support, and ask the caller to put their request in writing. It’s perfectly acceptable to ask that the request to be written, it weeds out those groups that aren’t serious about their fundraising. Set expectations regarding speed of your response. It’s not unreasonable to allow several weeks to formally respond to a request for donation. Having a time frame for a response will also weed out those organizations wanting an answer right away. You may wish to develop a post card or form letter that says, “Thank you for your interest in our company. We have allotted our donations for this fiscal year but will keep you in mind for the future.” Simply pop this in the mail to answer requests you won’t be fulfilling and you will have a turn-key method for closing the loop.
Communicate Your Policy
Make sure all of your staff understand which organizations you will be supporting and why. Brief them on your policies and procedures around donation requests so that most of these requests can be managed by the process without necessarily getting you involved. Post your donation policy on your website so those looking for support can easily access the information.
Keep Financial Records
Make sure you get receipts for all of your contributions. There are tax benefits available to those who support good causes and your accountant will be able to leverage your generosity on your tax return. Our government wants to reward us for giving – having the money in your pocket will make it easier for you to continue giving in the future.
Charitable giving has become more strategic as businesses choose to align themselves with key causes. CIBC has become synonymous with the “Run for the Cure” marathon in support of breast cancer. The alliance has been a good news story for both CIBC and cancer research. It’s not easy to say no to people asking for help. If money grew on trees, we’d say yes to everything – but that’s not reality. Trying to be all things to all people often causes us to scatter our energies. The end result is often not very effective. Pick your causes and choose a new one each year if you wish to have several charities benefit from your philanthropy. By spending some time addressing the issue of charitable giving, you’ll definitely sleep better at night.
Michelle Brisebois is a marketing professional with experience in the food, pharmaceutical and financial services industries. She specializes in brand strategies.
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