NFIB

Gift Management
10/ 01/ 2002

by Nancy Jackson

If you're like most small business owners, you're inundated with solicitations from various charities, and most of them probably sound both worthy and legitimate. But no small business can donate to every group, and it can be challenging to manage all the requests.

"Many small businesses don't have any type of policy for charitable giving," says Bennett Weiner, chief operating officer of the Better Business Bureau's Wise Giving Alliance (WGA). "It's important to stop and think about what you want to accomplish, so that you know your donations are helping reach your goals."

A plan for giving can be as complex or as simple as you want, but it should include a few basics:

Narrow your scope.

By identifying a particular area that your company wants to support (such as the elderly or the environment), you'll be able to give larger gifts to the charities you really care about, and you'll have a good reason for saying no to groups soliciting from outside that specific area.

"We focus our charitable giving on youth sports and school activities, because that's our market," says Roseanne Stuedeman, owner of Papa Joe's Pizza in Vestavia Hills, Ala. "We host team parties, and families come here to eat after their children's ballgames, so youth activities are a logical way for us to give back to the community."

Decide on a budget.

At the beginning of each fiscal year, determine the total amount you're willing to donate. Working from a big-picture perspective, rather than responding to requests as they emerge, keeps you in control of your giving.

"By placing a cap on your giving amount, you have an easy way to refuse those groups you're not able to help," Weiner says. "You can simply say, `Sorry, we've spent our contributions budget already. Try earlier next year.' "

Align business and giving goals.

If, like most small businesses, your customer base is the local community, it makes sense to give to charities that are in the neighborhood.

"We only give to local groups because they're the ones that can actually come in our store," says Stuedeman. "I have plenty of regular customers who started coming here as kids when I sponsored their ball teams." But don't make uninformed assumptions about a group's locality.

"Groups can seem local but may not have any activities actually happening in the area. If you want to help your local community, check out the charity and make sure it shares that goal," says Weiner.

Know who you're giving to.

Make sure your donated dollars are accomplishing the right goals by learning about the organizations receiving your money. Ask the charity to provide a copy of its annual report, IRS Form 990, or its audited financial statement so you can check out its financial history for yourself. In addition, Weiner suggests looking beyond the numbers and finding out exactly what the charity does - who's in charge, how is money spent, what programs are offered.

Say no.

If your goals don't match those of the charity, don't be afraid to deny a contribution. There are plenty of ways you can diplomatically refuse to give without jeopardizing your business or reputation. Maybe you've already reached your giving budget, or the group doesn't meet your specifications. Whatever your reason, there's nothing wrong with giving a brief, honest explanation and moving on.

"I try not to turn down anyone coldly," Stuedeman says. "I just tell them my decisions are based on what I can afford to do."

Before you write a check...

Visit the WGA Web site (www.give.org), where hundreds of charities and soliciting organizations are rated and reviewed based on their financial and management practices.

If the organization isn't listed on give.org, try contacting your local Better Business Bureau. In most states, charity groups are required to register with a state agency, so check with your state attorney general's office to find out if a particular organization is legitimate.

---

This article originally appeared in the October/November 2002 issue of MyBusiness magazine.

Small Business Sound Off
Does this story hit home?  Share your story with us