Firms need more reasons to give than just a warm feeling

It was a 7:30 a.m. business breakfast.

But this one was different.

The room at the Millennium was abuzz with good will and filled with compassionate businesspeople.

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Representatives from about 70 area businesses, the kind who have the energy to make good things happen, were recognized for donating at least 2 percent of their pre-tax income annually to non-profits. Also in the group were those who donate in-kind services and goods, and businesses that allow employees to volunteer on company time.

So this was a morning to celebrate.

Business Partners is a new program of The Community Foundation, a division of Culture of Giving in Boulder County. Companies qualify for enrollment by giving 2 percent to charities, and it’s on the honor system. Dave Gilman, president and chief executive of First National Bank of Colorado and a trustee of The Community Foundation, is at the forefront of the campaign. He would like to see 200 businesses in the program by this time next year –a tall order for Boulder, which gives below the national average.

And as time goes on, the rules of corporate philanthropy are changing. The good old boys’ network of bank presidents and CEOs has short-circuited because of mergers, acquisitions and the globalization of the economy. CEOs move in and out of communities before true friendships are made, and roots can take hold and wrap around a worthy cause. Twenty years ago they all knew each other, today they don’t, making it less likely to partner up. More importantly, company stakeholders have begun questioning the value of corporate philanthropy, said Scott Massey, a guest speaker flown in from Indiana, where he is president of the Indiana Humanities Council.

Massey, 20 years a CEO of a non-profit and author of several books on the subject, said although America is big on giving — $203 billion in 2000 ? giving at the corporate level is undergoing greater scrutiny.

The chief executive who decides to plop down a bundle on the charity of his choice in today’s climate had better be ready to ask shareholders looking for a dividend more than, “Don’t it make you feel good?”

So here you have it. Stakeholders are on one shoulder whispering, “Don’t give our money away.” Charitable organizations are on the other shoulder tugging on your ear ring pleading, “Give us your money.”

If you’re a decision-maker, and you want to help The Boulder Philharmonic Orchestra, but you can’t play the tuba, then you’ll need some justification when you write the check or encourage employees to volunteer to a worthy cause on company time.

So, you ask, “How do I measure the business value of corporate philanthropy?”

Walker Information Inc. has developed a tool kit that creates the Corporate Philanthropy Index (CPI). It’s based on how a company does its fair share to help a community and society; whether it contributes things like time, volunteers, money and sponsorships of events and causes; and if the company really seems to care about giving and making contributions.

This information creates the index. You can plunk down $75 for the tool kit at www.walkerinfo.com.

At present, the benefits from philanthropy are intangible and hard to quantify. But Walker has created four categories to track, and three of them have documented positive results.

Giving to a worthy cause can improve employee relations, making it easier to recruit and retain workers, and it can raise levels of morale, loyalty, motivation and productivity.

It can improve customer relations, acting as a tie-breaker for consumer purchasing and enhancing brand image.

It goes a long way in enhancing a company’s marketing efforts, providing a positive company image and reputation.

You’d think that the above three benefits would equate to a positive bottom-line return. At the gut level, the answer seems obvious. But alas, Walker reports that there isn’t any research yet that can prove a conclusive link between giving and making more money.

So the answer to the numbers question is still blowing in the wind.

But this much we know. Giving is a matter of choice. It promotes good will, happy employees and can influence certain customers.

Josie Heath, president of The Community Foundation, pointed out that more dead people give to communities than do businesses.

So I took from this breakfast three thoughts. One, 2 percent is a bargain to warm the cockles of one’s heart. Two, don’t wait to die to be a giver; you won’t get a free breakfast. And three, the ham and eggs were pretty tasty, as was the fresh fruit plate and muffins.