B2C/C2B – Building Connectivity between business and charity

Networking among businesses is nothing new.  It is well established that collaboration and communication enhance a corporation’s chances and opportunities for growth. 

This axiom also exists for the charitable or not-for-profit sector. 

Networking and collaboration between these two sectors is nothing new as well … at least for some organizations.  Unfortunately, often connections between small/medium-sized businesses and local charities and service clubs are not as prevalent as they could be. 

The reasons vary; lack of time and/or scheduling conflicts, lack of opportunity, lack of need awareness, and a general lack of connectivity are a few reasons.  Another perhaps is the lack of measurable benefits for either type of organization.  Additionally, lacking a pathway to create collaboration can be an impediment. 

There are ways however to bridge those gaps. 

A good reputation is invaluable for businesses of any size in a small town or city regardless of its size.  The ability to make a difference can often depend on the perception the organization has in the eyes of its community, its workers, and its customers.  Supporting the connections between businesses and local charities can be a very effective tool to accomplish this. 

Local charities and service organizations rely almost exclusively on fundraising.  The programs they offer help strengthen their communities.  If more local businesses could help charitable organizations financially, existing programs would be stronger and more programs could become available.    Taking the time to learn about specific charities and service organizations whose missions and values mirror those of the businesses would be appreciated by all the charitable organizations. Charities understand businesses can’t support everyone.     

The charity or service organizations should always ask for a “donated by” card from the donor business so the donation can be publicly acknowledged.  In addition, when applicable encourage your volunteers to patronize the donor’s business.  

When asked to support a raffle or door prize, businesses should try to donate practical and useful items.  For example, a $500 coupon off a $2,000 mattress is not something that many people could use whereas the donation of a $500 mattress would be much more attractive for people purchasing tickets.    

Sponsor minor sports.  For a business, the cost of sponsoring a team is usually quite affordable.  Survey your people and see if someone on your team coaches a local sport, not only does it help the sports organization; it can help build morale in the sponsoring business.  Good community building involves sponsorship that is more than just financial support.  Businesses should also include taking an interest in the team, post pictures on social media, and displaying team pictures to demonstrate community involvement.  Parents, the players, and anyone watching their games and practices will have another reason to learn about the organization.  Some organizations choose to sponsor one particular athlete as opposed to a team both methods can work well.

Become the primary sponsor of a community event.  Although potentially expensive, being one of two or three primary sponsors can work very well for the business and its community.  Businesses can underwrite costs, support advertising, and even pay staff to assist and donate prizes.  For the service club or charities, ensuring that banners, posters, and media coverage recognize the business partners can provide valuable public exposure to help the sponsors.

A key competitive advantage for businesses that support local charities and service clubs is informing their community of that support.  Advertising the logos and organizations supported helps to build awareness of the charities and the business.    

Offering special discounts to organizations that support your community.  While many service clubs and charities would prefer donations of the products and services they need, they also appreciate that local businesses must earn money to operate.  Offering products and services at cost or with a reduced margin is great way businesses can support their community.  Even small discounts can make a difference to charities like food banks, meal programs, and community gardens. 

Donating returns or used items in good condition can really help certain charities or service groups.  For example, a furniture store quite often removes older furniture that is in good condition, for customers that could be donated to crisis centers or charities that assist people needing a house is a big help.  For other retailers, many times merchandise may be written off by suppliers for any number of reasons, if the items are useable and in good condition if they can be diverted to help vulnerable people.  Grocery stores and restaurants can divert certain unused foods to “Food Rescue” programs and help alleviate food insecurity.    

Participate in co-operative education with local high schools.  Having one or two co-op students is an excellent way for businesses to allow students to work and learn valuable skills.  Normally they are not paid; however, the opportunity to learn and help businesses benefits everyone.  Businesses might consider a certificate or some kind of “bursary” to be used for their post-secondary education.  Additionally, co-op graduates make great employees.

Actively encourage your people to get involved in your community.  Increasingly some businesses are donating paid staff time to help charitable and service organizations.  These organizations benefit from people serving as corporate drivers, food processors, telephone receptionists, and a host of other roles.  For businesses, having people serve on a charitable board of directors can enhance and develop their skills and sense of community.  Using social media sites is a great way to recognize their contributions. 

Additionally, having business people make presentations at local schools on business or marketing topics, as well as skills such as “how to find a job” or “how to keep a job”.  Many people working in business volunteer their time to teach Karate or Kung Fu, coach minor sports and serve as cubs, guides, and scout leaders who could be recognized for their contributions.  Businesses could also make allowances for scheduling to accommodate their involvement in these activities.

Invite representatives from local service organizations and charities to speak to business people to make everyone aware of what their organizations do.  For example, having people speak about food insecurity, the stigma about mental health, human trafficking, what service legal clinics offer, as well as a host of other topics can help businesses and their people be more aware and informed about the issues in their community.

For “retail-type” businesses, provide customers with the opportunity to make a donation with each transaction.  Many people who wish to donate to charitable organizations may be willing to provide small donations each time they make a transaction as opposed to large single donations.  Liquor stores, grocery stores, and many retailers participate in this type of promotion and raise considerable sums for charities.  Although the risk of donor fatigue may occur, usually those people just say “no thank-you” and there are no or few negative incidents.  It is vital though, that charity or service groups take to time to ensure that the people working for the business fully understand the programs the fundraising support in their community.

In keeping with the concept of small regular donations, many businesses have set up payroll deduction plans to support local charities.  This very effective and almost unnoticeable deduction can pay huge dividends to local charitable groups.  The funds can accumulate and if recognized in an annual ceremony can be a source of pride and community goodwill that helps the donor organization and the charitable group(s).

Businesses can donate “in-kind” products and services to service organizations and charities.  For example, automotive repair businesses can provide “free oil changes” for charities with vehicles, local farmers may donate beef to a community meal program, and an accounting organization may provide financial services, the list of possibilities is almost endless.  As long as your region’s taxation laws have been adhered to this is another way for businesses to support their local charities. 

An indirect way for businesses to help support local charities and service clubs is to reduce the demand for certain programs.  If the business pays a living wage to their people, if they operate with full-time people who are provided with benefits, and if more businesses did so in every community there would be less poverty.  Poverty drives the need for so many of the social programs that charities provide.  Organizations like food banks were meant to be temporary, but because of the resistance of our society to tackle poverty, food banks still exist almost fifty years after they were created.

Supporting charities and operating a profitable business are not mutually exclusive.  Being socially responsible by supporting local service clubs and charities, paying a living wage, and getting involved in community causes and services, are all just part of being a vital part of the community in which they operate.  Businesses can help in so many ways, but like any collaboration, charities and service clubs can help businesses.  Recognition through all types of media, word of mouth, and patronage are all ways to help local businesses, and in small towns and cities, both can benefit.

Thank you,

Paul.