June 16, 2010 - Small businesses like yours may often be seen as the lifeblood of the community. Your shop is a place where locals shop for family and friends, a place where they gather for special sales and events and a place they look to for support when they need it. No doubt you receive numerous calls throughout the year from people requesting either monetary or floral donations, fundraising help or sponsorships. They are all for great causes that you’d love to support but, as a business, you have to draw the line somewhere or risk draining your resources. Here are a few ideas to help develop a donation strategy.
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Source: CFIB report, “Small Business,The Gift
that Keeps on Giving |
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Why donate?
There are many benefits to supporting your community. On the most basic level, it can help out others in need and make you and your staff members feel great. Many charities depend on local businesses to keep them afloat, especially after the recent recession.
From a marketing perspective, supporting a local cause endears the community to your business and encourages them to shop with you. You are also exposing your brand name and product to a new market of customers that you might not have reached otherwise. It also might be a great idea to team up with a charitable group to create your own promotion.
Budget ahead of time
Plan out how much money you’d like to donate to charities and local causes per year.
Look at the amount you’ve donated in the past and the cost of charitable activities to your shop. Decide which ones are important to you, your staff and your community and mark these as a priority. You also need to evaluate what you get out of particular promotions and fundraisers. Are they helping to expose your name and creating a win-win situation for both parties?
Things to consider
When someone walks into your shop asking for your help, there are several things you need to ask and consider. Here are some tips to keep in mind when making charitable donations:
• Ask for ID from the solicitor and investigate the cause or organization. Make sure you are giving your money or time to a legitimate group. You can visit the Better Business Bureau’s website and check out the Charities and Donors page to make sure the group adheres to BBB standards.
• Ask the organization how much of the money will actually go to the cause. Promoters or organizers will use the money raised to cover the fundraising expenses so it’s rare that “all proceeds go to the charity.” Break down the costs so you know where your money goes.
• Don’t give money on the spot. Take time to look at the request to see if it’s a good fit for your shop. If the charity is in a rush to get your cash, this may be a red flag.
• Develop a donation form that you can display on your website and give to people who come into your shop. This will allow you to collect the information you need in an organized manner. Once you develop a plan, ideally you could ask that all donation requests for the coming year be submitted to you by a certain deadline.
• If you’re giving flowers to an event, ask organizers if you can display your logo on the flower containers or a card, or somewhere at the event. You’ll want to take credit for the beautiful design you donate. Don’t forget to give fresh flowers and make sure the display looks great!
• Don’t give cash – instead opt for a cheque, address it to the charity rather than the individual and request a receipt. Keep track of these documents for tax purposes. If you’re volunteering your time only, keep track of your out-of-pocket expenses, as you may be able to deduct these costs.
• When you don’t have the budget to support the cause but still would like to help out, offer to hang a poster in your shop window or hand out flyers in your shop.
• If you’re asked to take out an ad or sponsorship in a publication or flyer for charity, ask the same questions you would if you were placing the ad in a newspaper. Request circulation numbers, ask who the audience is and where the materials will be distributed.
• Work with charities or local causes to come up with a fundraiser that benefits both of you. You might want to try establishing a fundraising program in which a portion of sales at your shop goes to the group. This could be applied to a particular product or if a shopper mentions the program at the checkout.
• Tell people about your efforts – if you’ve started a donation program, are hosting a charity event or taking part in a local cause, let your customers and the media know.
Creating a clear donation strategy will maximize your volunteer time and the money you donate. It’s a marketing effort that does more than just promote your shop. Giving back is a rewarding action that helps make your community stronger and can unite your customers and your staff.
What do you do to support local charities? Share your ideas and promotions with us! Email
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