FundClass Archives:

Corporate Giving

Edited Digest of FundClass Topic #07, October 1997

Co-Facilitated by Don Murray, Founder, President and Executive Director of Children's Harbor in Coral Springs, Florida and Christine Scott, previous Executive Director of several medium-sized nonprofits.

Don Murray is founder, president and CEO of a small agency, only 18 months old, which is in the preconstruction phase of building a 20 acre campus for the care and treatment of abused and neglected children. Don is the only full-time paid employee, and is assisted by his wife and a half-time administrative assistant. In the last year, Don has developed relationships with corporate givers very successfully: donations include furniture, copiers, postage and other supplies, as well as several donations in the six-figure range, and is in the final stages of negotiating a gift of 20 acres of land worth nearly a half million dollars. He is clearly well qualified to facilitate our discussion of corporate giving!

Opening Message by Don Murray

The key to getting a piece of the corporate giving pie is in developing RELATIONSHIPS. Although many major and some smaller corporations have adopted policies to "give" so many dollars back to their communities, the hard part is to be on the receiving end of this policy. How do we maximize our opportunities to develop relationships which will increase the number of corporate gifts we receive?

Knowing that corporate America maintains vast resources of manhours, office equipment, supplies, management expertise, and hard cash, it seems logical to come up with a plan to encourage the transfer of this "stuff" to nonprofit organizations . . . it feels a lot like Robin Hood, but his tactics probably won't work!

Generosity is a funny thing. In addition to a "warm fuzzy", most people feel better about giving when they get something in return. Public TV uses that idea when they give away premiums with pledged contributions, and it works. What kind of "premium" does corporate America want? Well, the obvious answer is . . . money! Corporate America wants money, and how do they get it? They conduct more business, engage more clients, sell more widgets, etc. So, if our organizations can assist business in their quest for money, we place ourselves in a good position among other nonprofits looking for donations. How do we scratch corporate backs so they're willing to scratch ours??

My organization developed a Professional Business Networking Group. Each month, 125-140 mid- and top-level business owners and executives meet at a local upscale restaurant at a function which we host. (The first one hosted 30 people.) They pay about $15-20 at the door, and spend two hours "networking" and relaxing. This forum permits me to meet those executives and managers who may be able to support us in some way. I attend each function, along with our volunteer 'ambassadors' and board members; we work the crowd, finding out about each person's business. New members fill out our applications, which tell me about their business and how to contact them, as well as personal interests (golf, tennis, etc.).

I typically meet from thirty to fifty new execs at each monthly meeting. Regular members get in for free by bringing two guests with them. Incidentally, this function costs our organization NOTHING . . . 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 two drinks are consumed, guests dip freely into pockets, and it isn't unusual for the restaurant to pick up eight to ten dinner tables after our functions, which are held on Tuesday or Wednesday, traditionaly slow nights for restaurants anyway.

It is important to remember that the point of this function is for the guests to conduct their business networking in a relaxed atmosphere; unless pressed, I do not spend much time talking about our organization. I have info to contact these people later, and assuredly will do so. But, I try to find out as much as possible about their businesses, and try to connect them with people there whom they might wish to meet. For example, I may introduce a corporate CEO or CFO who may be bored in their current position to the President of an executive search firm; or introduce a land developer to a general contractor. You get the point.

This is not the time to pitch your charity, but for your guests to see you as a friendly business associate who is interested in their business and their success. This is crucial . . . if they see this meeting as a time when they're going to be dunned for money for your charity, they won't come. If they come and make some great contacts for their business, they'll return and bring friends next month.

[And remember to enter all the valuable information you pick up on each of these guests into your database . . . knowing how people can be of use to you is vital. You'll want name, address, phone number, email address, etc., of course . . . but also what a person is interested in, who he/she wants to meet, how they want to enlarge their business, who they know (relationships in all directions are important!), and anything else you pick up about them, even if it seems less than relevant at the time. If you're having staff, volunteers, and board members help you at events like this, be sure to plan some training time beforehand so that everyone knows what info to look for, and how to record it later. -- Ed.]

 

Responses to Opening Message

Responses to Don's intro included a concern that this idea, while a great one, wouldn't work as well for an organization which is state-wide rather than fairly local. Don's answer to that is to look at corporations that have branches state-wide, like banks, groceries, Walmart/Target chains, etc. Start with representatives from your local branches, and see if it can spread.

Another writer asked more about starting such an organization. . . Don's reply: When we began, I asked our 'corporate type' Board Members to promise to bring two-three corporate associates to the first meeting. I used just our list of 'warm contacts' and Board contacts to start with. Folks who brought guests with them were not charged the admission fee. The group grew quite quickly, and now represents a broad cross section of fields and individuals (and is the basis for our entire volunteer program, I might add).

Also important is following up: I call each member within a few days of their first meeting, thank them for attending, and try to find out a little more about their business for my database. I also urge them to bring a guest to the next meeting. Each month, about three weeks prior to the event, we send post card invitations to all members, and follow that with automated reminder faxes four days before. --- When you're a young, upstart charity, you need tons of help with credibility, and any corporations I could snag got lots of horn blowing from me!

Another question concerned getting the restaurant to host the event, especially at first when it was all an unknown quantity . . . Don: we selected a relatively new and upscale restaurant that needed to attract a fairly affluent client base. During the initial presentation, I kept reminding myself to focus on the needs of the restaurant; asked them which nights were slow, when they'd like to introduce their place to some great folks . . . I projected (and thankfully was right) that they'd pick up a number of dinner-tables after the event. During the event, I announced that the restaurant was hosting this function, and asked attendees to try to direct some business lunches and dinners to them throughout the course of the upcoming month . . this also worked. No magic, just guts!

Several people wondered how well this concept would work in a smaller community, one where most business people already know one another. . . one suggestion was to do it quarterly instead of monthly . . . perhaps bring in out of town guests to entice people to come: "oh, by the way, execs from XYZ corp. will be in town for the March mixer . . ."

One writer asked about the ambassadors. Don's response: this program wasn't really our idea . . . after a number of events, we received perhaps a dozen inquiries from people wanting more information about our organization and the problem of child abuse and neglect. I put together a one-hour orientation and invited all new members of our Professional Group to attend.

We do the orientations about once a month. Once 'graduated' from this orientation, these Ambassadors are fairly well equipped as to our organization's mission, how we compare with other groups, and the problem of abuse and neglect. Graduates are given a special "Ambassador Button" to wear at all of our functions, and I call upon them to 'clone' me at other events I can't get to. These volunteer ambassadors are a mixed group of business executives and others, and they all help with the grass-roots stuff. Incredible, isn't it?

 

Building Relationships With Corporate Givers

From one participant came a list of suggestions for connecting with corporate givers:

• Your president or chairman MUST be wiling to travel to meet and greet and carry your mission to corporate community.
• Members of the Board and staff must also be willing to help.
• Once you've started a relationship, always be on the lookout for ways to nurture and strengthen it. . . newsletters, functions, etc.
• Read newspapers and business journals . . keep informed on the happenings in the business community.
• Be sure to send a card or call congratulations when you read of good news/success of one of 'your' businesspeople in those publications.
• Use personal contact: when you research a company, and find it to be a good potential fit with your organization, call and ask if your President can come and talk with the company's leader. People are often flattered to be asked. Remember to follow up with a thank you letter, and any information asked for.
• Be sure to keep in-house data up to date, from ALL sources. If a company donates a copier to the development office, your President needs to know about it when he goes to visit the President of the company that donated it . . . "say, thanks for that copier, the development office is going great guns with it".

Co-facilitator Christine Scott offers a good idea: I keep a stack of post cards on my desk, and while I'm talking on the phone can write quick notes to the liaison in the companies we are working with. . . to let them know the new copier we bought with their funding is working great, or that we just hit our goal for the quarter of serving a certain number of clients . . . anything I can do to keep them informed, connected, and feeling appreciated is beneficial.

Christine also suggests that with a company that you hope to work with long-term, asking for a liaison from that company to sit on the Board of your organization is a good idea. . . probably not the president or CEO, but rather mid-to-upper level management folks.

And from a participant comes a suggestion on that topic: when corporate people are recruited to serve on a Board or committee, it is often because of either their contacts or their technical expertise. To get them more involved in your cause on a personal level, invite them to come and see your organization . . . at a day care center or a housing facility for the disabled, ask them to come have lunch, for instance . . . this personal contact with your staff and the people you serve will give them a real picture of what the work is about and increase their knowledge and commitment.

 

Personal Contact - Getting Your Foot In The Door

Many participants noted that personal contact is the most effective way to build relationships with corporate givers. It can be helpful to have a promotional packet of info to take along with you, or send after a visit, but the personal visit is the key.

To get your foot in the door, find someone on your Board or staff who knows someone, anyone, at the corporation you're targeting. . . the highest-level decision-making person possible, but don't worry if it's not the CEO or head honcho - that can come later. Plan your visits, keep it brief, take someone with you (someone from the Board plus a development person, perhaps), and find out what you can about the person you're to meet with. And always, always FOLLOW UP, with a phone call, letter, and/or invitation to an event. . . the follow-up is the key to building a relationship. . . . People are generally impressed that volunteers will take the time to come and talk to them.

Target companies that benefit financially from the services your organization provides. For example, a Poison Center targets health insurance companies, because they can make the case that their services reduce unnecessary medical procedures and emergency room visits, thereby saving health care dollars -- a direct benefit to health insurance companies. What companies benefit from the services you provide?

 

Resource for Volunteers

Don't forget that all these companies have employees who are possible donors . . ask for time in the cafeteria to make a presentation (a good way to glean new volunteers), or ask to add a brochure in with a mailing or pay packets. Companies have many resources beside dollars, so don't forget to mine them as well!

 

Benefits to the Corporation

What benefits can your organization offer a corporation and/or its employees? Some examples: an environmental organization formed a corporate advisory group which required a minimum annual contribution for a company to become a member. The nonprofit offered several seminars every year on cost-effective, environmentally sound business practices, as well as free publications and some individual consultation by the staff. The corporation was also listed prominently as a member of the group and received the benefit of an enhanced "environmental good guy" image. . . . a nonprofit providing early childhood education and daycare can offer companies assistance in dealing with employee needs for child care, even perhaps operate a daycare center on corporate premises. These types of corporate relationships are valuable to the corporation, and to the nonprofit: a win-win situation.

On this topic, Don Murray mentioned the idea of including links on your Web page to the websites of companies you're working with . . . he has a page on his website devoted to corporate sponsors (giving them increased good publicity) which includes links to their sites. (This also increases the credibility of the nonprofit.)

 

Making Your Request Less Alien

And, one participant, who has a business background, suggests that businesses find the idea of not-for-profit rather alien. They generally like operations that are self-sufficient . . . they might respond better to a request for seed money for a portfolio of investments, or to funding the purchase of a revenue-generating enterprise, or bankrolling a major fundraising event. Businesses see this as a reasonable way of using their money/expertise, as it means you won't be back, asking for money next year . . . it's the "give a man a fish/teach a man to fish" principle.

 

"Bubble Exercise"

During a discussion, someone mentioned the "bubble exercise" method of brainstorming; another reader asked for details: This works well in workshops or meetings. On a blackboard, draw a large circle and place a word representing the client inside it . . . then smaller circles are drawn surrounding the main circle, and any company/organization/group that has anything to do with, or a vested interest, in the client is placed one per circle. Then smaller circles around those . . .

Example: our agency serves children, so in the large main circle we wrote "children". In the surrounding circles were written words such as "schools", "clothing stores", "toy manufacturers", "movie theaters", etc. Then, around the bubble marked "ice cream shoppes", are written answers to questions like "whose livlihood depends on the success of an ice cream shop?" . . . dairy farms, sugar plants, shopping mall management . . .

The point is to broaden our thoughts and find pathways to organizations/companies we would not otherwise think of as targets for funding. By looking at how they can benefit, even if through a trail of sorts, we can begin to enlarge our thought processes and prospect pool about who might be a good prospect. It also helps us formulate the ask and the tie that will hopefully bind them to the agency's mission.