It was Friday afternoon one month before Christmas, when Verne Sawyer, owner of Frames Plus and Colours of Art in Frederick Mall, turned away from a line up of customers to answer the phone. It was a charity asking for a donation – the seventh request that day! As owners of small and medium-sized businesses do their best to survive, charitable giving can feel like one more demand on their limited time and money. But there are ways to make charitable giving more of a joy and less of a chore.

Setting giving priorities

When Sawyer gets a call for a donation, one of the most important considerations is whether or not the charity is local. His two stores are located in Frederick Mall, which is a small neighbourhood mall in Kitchener. His customers are mostly from the surrounding area so he donates to local schools, churches and agencies. He admits that he has not further articulated his giving criteria.

Setting priorities for giving enables you as a business owner or manager to quickly decide if you want to support a particular organization or not. Guidelines also allow you to focus your donations and see measurable results by significantly supporting fewer causes. Most large companies have giving guidelines. For example, Heffner Lexus and Heffner Toyota’s giving mandate is “to support organizations that work within, and enhance the lives of Kitchener-Waterloo residents, and to focus on arts organizations and/or organizations that work to support children and families in crisis.” They give generously within these parameters and make a tangible difference in the community. You may have fewer resources, but if you focus your giving you will be surprised to see how much good you can do.

How to set giving priorities

Brian Kelly, president of Jump Logistics in Cambridge, expanded his company in April, 2005, from a 1,200 square foot location to their current 25,000 square foot facility. Jump Logistics provides air, ground, and courier delivery services, as well as warehousing and logistics for a range of customers from manufacturing and printing businesses to medical and technology companies. With the recent expansion, and the bankruptcy of a large customer in late 2005, Kelly has had to temporarily limit charitable contributions. But he recognizes the importance giving so he and his senior management team are including charitable giving policies in current corporate plans and budgets.

The first step in delineating giving priorities is setting aside time to think and talk about it with the decision-makers in your business. Decide what is important to you. What makes you angry? What are you passionate about? What cause has touched you or someone close to you? Maybe you know someone with a long-term illness and would like to support research for a cure. Perhaps you are eager to feed needy children in the third world or protect the environment.

When Verne Sawyer gives, he considers what causes are important to his target market. Colours of Art is an art supply store. Young art students and their parents are some of his main customers. For this reason he supports school functions and donates appropriate products that allow people to sample his wares.

Kelly and his management team also keep their customers’ and employees’ priorities in mind as they make donations. Kelly says, “my own charitable contributions reflect my personal beliefs. When I am involved in decisions on behalf of the company, I like to support a cause that my employees and customers are interested in.”

Recently, a charitable request caught Kelly’s attention. Paul Runstedtler, a local man whose mother and grandmother died from Alzheimer’s disease, set a target to raise $20,000 for the cause. Runstedtler plans to participate in the Ascent for Alzheimer’s this fall as people from all over the world climb Mount Kilamanjaro in Tanzania. Kelly and his associate, Clint Macdonald of Interglobal Solutions, got on board. “I liked this fundraiser because it’s something different. It suits the corporate persona of Jump.” Jump’s tagline is “anything is possible.” Runstedtler is holding a car rally to help raise the $20,000 and Jump is going to enter some of their vehicles. In cooperation with Interglobal Solutions, Jump created a website for Runstedtler worth several thousand dollars (see the site at www.paulsclimb.com). A good fit between the charitable cause and your desired corporate image is also a significant consideration when determining your priorities.

Set a budget

Setting a budget for charitable giving helps you make an appropriate investment but not overextend yourself. Sawyer has a particular figure in mind to give each month but in spring and fall – peak times of the year for charitable requests – he gives more than he has budgeted. “My accountant gives me trouble. He says I give too often,” Sawyer comments.

Some business owners set a monthly or yearly dollar figure, while others give a percentage of sales or profit. Keeping track of what you give and who you give it to is integral to staying within your budget. Having a record of your giving also helps you celebrate the good you’ve done over a year.

The promotional benefits of charitable giving

Charitable giving can be motivated by many things, including the desire to build a positive public image and to promote your business. When a charity calls there are some questions you should ask to evaluate the promotional benefits of a request. Does the charity serve someone you or your customers care about? If you are donating a product, service, or money toward an event you should ask how many people will attend the event. Ask if the charity plans to mention your business name in the event program, and whether or not you can include your logo and website address. Always send a brochure, and/or business card with your donation and, if appropriate, consider a coupon to encourage repeat use of your service or product. Ask if they will mention your business in their newsletter and how many people the newsletter is distributed to. A good promotional opportunity builds awareness of your business among members of your target market.

Repeating your message to the same group of people helps them become familiar with your company. Supporting the same charity every year is preferable to the shotgun approach of supporting whoever calls first. Alternatively, you could sponsor a variety of organizations that serve similar causes and reach your potential customers from different angles.

When you decide a charity fits within your giving mandate, you should also ensure that they are worthy of your gifts. Some quick ways to evaluate legitimacy include asking for a charitable registration number and looking for symbols of financial accountability like the Canadian Council of Christian Charities seal or the Ethical Fundraising and Financial Accountability code. Some nonprofit organizations, such as schools, are not registered charities; in this case ask for a written request on letterhead signed by the head of the organization.

You have your priorities, a budget, and a list of worthy causes that are important to you, and your employees and customers – now you’re ready to give. Charitable gifts can take many forms including: giving an employee time off to volunteer; providing your service for a reduced rate; giving gifts in kind; or matching your employee’s financial contributions. Discover the joy of giving as you make a difference in your community and build your reputation as a good corporate citizen.

Sandra Reimer is a freelance writer and publicist with experience planning events, marketing, creating promotional materials and writing funding proposals. She has also done community and media relations as well as fundraising in the nonprofit sector. She is passionate about charitable giving personally and likes to inspire others to give as well. For more information, visit: www.reimer-reason.ca.