FundClass Archives:

Corporate Giving: full opening message

Full opening message of FundClass Topic #07, October 1997

Our facilitator for this FundClass topic is Don Murray

"The Resurrection of Robin Hood"

Corporate Giving . . . Developing the Corporate Relationship

Corporate Fund Raising? Just how different is corporate fund raising from whatever else we do to raise money? How do we gain access to corporate dollars and other corporate resources? How do we make our organizations come out on top in the charitable quest to collect corporate contributions when there are so many "good causes" knocking on the same corporate doors? For Pete's sake, how do we even get to know the people we should ask? The answer is in developing RELATIONSHIPS.

Although many major and some smaller corporations have adopted policies to "give" so many dollars back to their community, the hard part is, of course, to be on the receiving end of this corporate gift. How do we maximize our opportunities to develop relationships which will increase the number of corporate gifts we receive. I decided to offer an opening which would discuss the development of corporate relationships. (It's much more fun than discussing the tax advantages of pre-tax employee contributions.)

As I began to think about the above questions and ponder our small organization's relative success in the corporate giving area, I realized that the strategy which we have employed has successfully linked us to literally hundreds of corporations and businesses in about 10 months time. In addition, this strategy maintains this link. As a result of corporate relationships, our small organization has recently received beautiful office furniture to completely re-do two offices (formerly ustilized by bank executives), two large copiers with maintenance contracts, donated postage for large mailings, boxes of envelopes, offices supplies and hundreds of hours of donated manhours.

On a larger scale, corporate giving is also responsible for a pledge of a low 6 figure gift from one corporation this coming December and a mid 6 figure gift from another organization in August of '98. It also appears that we have created an ongoing, annual funding stream, in the mid 6 figures, beginning in August of '98 as a result of our strategy for developing corporate relationships. We are also in the final stages of negotiating a gift of 20 acres of land worth approximately $490,000, as a result of corporate relationships.

I am the Founder, President and CEO of a small agency who is in the pre-construction phase of building a 20 acre campus for the care and treatment of abused and neglected children. We are a young organization, less than 18 months old. As the only full-time paid employee, I am assisted, full time, by my wife, who receives a small stipend for her efforts, and a half-time administrative assistant. As you might suspect, it didn't take me long to discover that I needed some additional help to accomplish what needed to be done. Our 12 person Board of Directors are very busy people and many see themselves as mentors, as opposed to workers. (They're great in their perceived roles, too.)

During the first half of my professional life, I had been an integral part of mainstream corporate America. I know that corporate America contains vast resources in every conceivable area . . . man hours, office equipment, office supplies, and management expertise as well as substantial amounts of hard currency available for charitable contributions. I needed all of that stuff and had little or none of it. It seemed, then, logical to come up with a plan to encourage the transfer of this "stuff" to our organization. I considered many options to help corporate America part with this excess. I'm sure I felt much like Robin Hood must have felt, years ago, as he plotted to "take from the rich and give to the poor." I was almost desperate enough to try anything but I just couldn't see myself in tights and a feathered cap and my archery skills are terrible. And frankly, I look more like Friar Tuck than Robin Hood. I had to come up with something else.

Generosity is a funny thing. In addition to a "warm fuzzy", most folks feel better about giving when they can get something in return for their gift. Public television is always giving away some kind of premium with pledged contributions. It really works! What is it that corporate America wants? What kind of "premium" could our small organization provide to them to induce them to paqrt with their hard-earned corporate wealth? Come on . . . you know! Businesses want more money. How does corporate America get more money? They conduct more business, sell more widgets, engage more clients, or serve more meals. I believed that if our organization could assist businesses in their quest to obtain wealth, we could place our organization in a favorable, and possibly unique, position among charities. I needed to come up with a plan to help corporate America get richer so they would like us better than those other great charities knocking on their doors with their worthy hands outstretched. How could we scratch corporate backs so they would be willing to scratch ours?

In response, our organization developed a Professional Business Networking Group which meets monthly at a local up-scale restaurant/lounge. Each month, 125-140 mid and top level business owners and executives come together at a function, which we host. (The first function hosted 30 folks) They pay about $15.00-$20.00 at the door and spend 2 hours "networking" and relaxing. This forum permits me to meet those executives and managers who may be able to support us in some way, later. I attend each function and our volunteer "Ambassadors", and Board Members and I, work the crowd finding out about each person's business. New members fill our applications which tell me all about their business and how to contact them as well as their personal interests such as golf, tennis running or whatever.

I typically meet from 30-50 new business executives each month, just at this function. Regular members get in for free by bringing two guests with them. Incidentally, this function costs our organization nothing. . . zero . . . "nada"! The restaurant is thrilled to host this function for us. They provide two free beverages for each guest as well as a heavy munchie buffet. After the 2 drinks are consumed, guests freely dip into their pockets and it isn't unusual for the restaurant to pick up 8-10 dinner tables after our function. We hold these functions on Tuesdays or Wednesdays . . . traditionally slow nights for a restaurant anyway. In this "Target Rich Environment" it is crucial to realize that this is a function which you are hosting for them to conduct their business-networking in a relaxing atmosphere.

Unless specifically pinned down, I try not to spend too much time talking about our organization. I have their vital statistics. I can (and most assuredly will) contact them later. I always, however, find out as much as possible about their organization. I listen intently to the type of business they are in and then I try to walk them right over and introduce them to people they may wish to meet. For example, I may introduce a corporate CFO or CEO who may be bored in their position to the President of and Executive Search Firm; or I may introduce a land developer to a general contractor. You get the point. This is not the time to heavily pitch your charity. It is the time for them to see you as a friendly business associate interested in their success. I believe this part is crucial. If their attendance, each month, means that they would be subjected to another pitch from your charity, they won't show up. If, they come and make some great contacts for their business, and your charity is the host, they'll love you and they'll bring their associates with them next month.

From these events, our organization has developed an active "Ambassador" program. These "Ambassadors" become my "Public Speakers", event coordinators, envelope stuffers and evening data entry clerks. Our "Professionals" group grows each month and we are now developing a chapter in another county. It gives corporations the opportunity to utilize your non-profit as a conduit through which they may conduct business . . . and it's a write-off.

I'm looking forward to discussing this concept further, if you're interested, and I'm also interested in learning other ways to "hook" corporate America.

Put on your tights, grab your feathered cap, grab your bow and arrows and lets go liberate those excess resources from those friendly corporations.

Don Murray

President, CEO, Children's Harbor, Inc.

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This opening message was originally posted by Don Murray on October 20, 1997