Finding a non-profit partner

What is good for the community is good for business. This philosophy has been popularized in recent years. But what does it really mean for a small-to mid-sized company operating in a competitive global market dominated by big business, e-commerce and big-box superstores?

It means a lot.

National and local surveys, including one conducted by The Denver Foundation, show that consumers are more inclined to think positively of businesses that give to the community. In addition, a recent national Roper poll showed that Americans reject the argument that a corporation’s only role is to make money.

With the tremendous power that businesses wield in today’s global economy, there is an expectation for accompanying social responsibility. So, when price and quality are equal, nearly two-thirds of Americans report they would be likely to switch brands or retailers to one associated with a good cause.

Companies that engage in philanthropic causes are likely to enjoy a positive image in the community, increase their customer base and improve their bottom line. A healthy community is one where the basic needs of all citizens are met, including health, education, safety, shelter, employment and a healthy environment. When basic needs are met, businesses have a stronger workforce from which to choose and a positive economy in which to operate.

That’s not all. Approximately 87 percent of employees at companies with philanthropic programs feel a strong sense of loyalty to their employers, compared to 67 percent of those who do not have such a program, according to the 1999 Cone/Roper Cause Related Trends Report.

Philanthropic programs also have a dramatic influence on employee pride and morale. And companies seeking to hire and retain employees are recognizing that supporting a good cause provides a valuable tool for strengthening bonds with their employees.

You don’t have to be a big business to make significant contributions to the community. There are numerous ways for small-to mid-sized companies to engage in philanthropic causes successfully while benefiting the company’s bottom line.

First, you must identify why you want to do philanthropic work in the community. Do you want to increase customer loyalty? Do you want to improve employee morale? Do you want to generate positive public relations? Are you doing it purely for the good of the community? The clearer you are about your goals, the more likely you are to achieve them.

Second, determine how much time, money and effort you, your organization and your employees are willing to devote to the efforts. A recent study conducted by the University of Denver Daniels School of Business concluded that partnerships between businesses and non-profits succeed when there is effort from both sides.

Third, as with any business investment, you must be committed for the long term. By focusing on and nurturing your social investment over time, you are more likely to experience the benefits in the health of your business as well as in the health of the community and your workforce.

To ensure that your investment is realized, form a strategic partnership with a non-profit organization that has a mission that matches your philanthropic goals. Approach this partnership as you would any other business relationship: establish clear goals, identify who is responsible for what, determine measurable outcomes, communicate regularly and hold up your end of the deal. By creating a strong partnership, you are solving social challenges and creating value for each partner.

Business contributions to the partnership can take many forms. Most non-profits are always in need of financial support such as donations or sponsorships. You also can provide non-monetary support that helps your non-profit partner be successful in meeting your mutual goals.

Examples include serving on the non-profit’s board, providing training programs for their staff or volunteers, helping with computer technology, loaning executive personnel and donating equipment and supplies. You also can create an employee volunteer program that gives employees meaningful opportunities to contribute to your philanthropic partnership.

In turn, the public goodwill engendered by your non-profit partnership will be a very positive reflection on your business. The non-profit organization can include your company name in promotional materials, newsletters, annual reports and provide recognition at events.

To identify your philanthropic cause or causes, start close to home. Survey your employees to find out where they contribute their volunteer time and charitable dollars. This will help you determine what is important to the people who help your business to thrive. Some non-profit organizations address quality-of-life issues such as arts, education and the environment. Other non-profit agencies serve the health and housing needs of the underprivileged, while still others administer to the safety, welfare and employment needs of the community.

You may also consider causes that are important to your customer base or a potential market you wish to reach or expand. Or find a program that is aligned with your business’ mission. Be creative. You can be sure that no matter what philanthropic goals you identify and support, you will be making a difference in the lives of your employees, customers and community, as well as your bottom line.David Miller is the executive director and Marlene Casini is director of Advancement and Communications at The Denver Foundation, a community foundation serving the six-county Denver-metro area, including Boulder. A goal of The Denver Foundation is to increase philanthropy in the community, making life better for all.

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