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Opinion: Guidelines for corporate giving

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Does it seem that you are receiving many more phone calls, e-mails and mailings asking for financial support of local charities?

It can be difficult to get work done when workdays are peppered with requests from fraternity brothers, fellow church members, neighbors or valued customers, asking for financial gifts to support nonprofit organizations they are passionate about.

If those requests are familiar, you’re not alone. Between 1998 and 2008, the number of public charities registered with the Internal Revenue Service increased by 60 percent. You don’t need national statistics, however, to know that more people are frequently asking for more support for their organizations.  

Philanthropy is a really big deal in the U.S., and a lot of good is happening because of generous hearts and open checkbooks.

When determining how to respond to the deluge of charitable requests, be proactive instead of reactive. Develop a plan ahead of time, take charge of your company’s charitable donations, and actively direct the process instead of feeling drained or feeble in manufacturing excuses, or, even worse, trying to brush off or ignore them.

First, put together a plan. A corporate charitable plan should take into consideration the company’s history of giving and specific areas of passion, such as human services, children, arts, education or health care, and dictate how company leaders wish to receive requests for help.

The plan should outline a procedure for organizations to make charitable requests, and this procedure might take the form of a brief application. Internally, company leaders can set a specific dollar amount to give on a monthly, quarterly or annual basis. Requiring an application 30 or 60 days prior to an event or a donation deadline will quickly discourage last-minute, haphazard decision making and weed out nonprofits that lack discipline and organization – and there are a few of those.

Respond with professionalism. Once requests have been received, treat the requesting organizations as potential customers for your business – because that’s what they are. Charitable organizations are users of office space, furniture, technology, employee benefits, accounting services and automobiles, and the list goes on. If you sell it, a nonprofit organization probably needs to buy it. The last thing you need is a nonprofit board member hearing from a staff member that you never return calls or were rude or abrupt when contacted about charitable support. That could translate to, “I wonder if that’s how they treat their customers?” Be a professional. Return phone calls, express appreciation for the request, and offer advice or ideas to help the nonprofit solve problems. If you say, “Let me get back with you,” then schedule a time to do so, and follow through. Trust me when I say charitable fundraisers prefer to hear “no” than to hear nothing at all.

Use the right tools to help you make decisions. You have a plan, you provide an application, and you’ve narrowed down several requests to consider. Now, there are tools that can help you choose which requests to grant. It is certainly reasonable to ask the charity for a copy of its 501(c)(3) letter from the IRS, a list of current board members, and/or a copy of the organization’s most recent Form 990. The charity’s response to these requests says a lot about the nonprofit’s discipline and professionalism. It also can provide you additional information, including the financial condition of the nonprofit and specifics on how much revenue goes directly to programs supporting its mission, as well as the percentage of donations used for other expenses such as administration and fundraising.

Pick a cause with your heart but pick an organization with your head. Then look for evidence that the group receiving your company’s support is having an impact related to its mission and objectives.

Philanthropic efforts can certainly go a long way in promoting a company’s image, professionalism and community support. It’s always good business to give in support of the community; it’s even better business to plan ahead of time how that giving will be done.

Jackie Barger is executive director of the Children’s Smile Center, a nonprofit dental clinic in Ozark. He has more than 25 years of experience working in the nonprofit sector and may be reached at jackie.barger@hotmail.com.[[In-content Ad]]

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