Wednesday, March 10, 2010

Giving Something For Nothing

It’s hard to overstate the value of giving back to the community in which your business resides, but often businesses don't recognize just how far the goodwill of giving can go. You may believe that contributing either in kind, or on cash only benefit the recipients of your donation, however with the right messaging often the ripple effect of your drop in the bucket can reach far further than you'd expect.

When a local oil businessman, the late Theodore Rozsa donated $3 million to the University of Calgary for the now renowned Rozsa Centre over ten years ago, he originally intended to provide the donation as an anonymous donor. However at the urging of his counterparts over time he ultimately allowed his generosity become public and the facility to become his namesake. While his humble demeanor and a desire to not make a show of his generosity was the original basis for his decision, ultimately he recognized that allowing the Rozsa Centre to be named what it is would set a selfless philanthropic precedent for his industry peers.

So let's bring this back to the entrepreneurs and Rozsa's-to-be. Calgary businesses, both for-profit and not-for-profit benefit tremendously from an entrepreneurial spirit that drives the city forward. There's no shortage of budding charitable organizations, independent not-for-profits (I’ll call the NFP’s hereon), and events that can use your help.

Though there's no denying the fact that cold hard cash is required to keep every business or charity going, but often the particular skillset that you apply to your business will make a huge difference to others. NFP's have the same needs as the rest of us, they need web designers, accountants, communications/PR Specialists, event organizers and operations managers, etc., however the nature of their trade often requires social entrepreneurs to be all of the above. With this in mind it becomes clear that any time, help, advice, or experience you can impart can and will go a long way.

Of course there is the marketing and good PR side of involvement with NFP’s, and I’d be remiss if I failed to mention them. Your brand and presence with NFP organizations often establishes a positive sentiment with participants, volunteers, and other donors in a manner that conventional brand building and advertising simply cannot achieve. Think of this as just an added bonus to your giving back though, it shouldn’t be the only reason you decide to have a kind heart.
I've been on both sides of this fence and can provide a few pointers for both sides on making the relationship a good one;

Successful businessperson providing the hand up:
  • Inquire as to how your contribution will be used and be clear on what the objectives of the NFP are and don't be shy about holding the NFP to those objectives

  • Apply the same business principles that made you successful to the NFP, if you've had success with your business and industry; constructively share every ounce of that expertise you've acquired over the years with your new friends.

  • Realize that your time and contributions deserve recognition. Remember why you're doing this, not for the sake of marketing but because giving back will give you the warm fuzzies. The recognition you receive should be out of gratitude and for the same reason that Dr. Rozsa said yes to putting his name on that building.

  • Do your homework on the NFP, get to know its people, and ask a lot of questions. Not only does this help to ensure you're giving to a cause that will deliver, but also helps build a collaborative relationship.

For the NFP...

  • Value the time of your benefactor, they certainly are not obliged in any way to lend their time to you so make sure that when you speak to them you have a clear sense of purpose and a long term vision for your organization that includes their participation.

  • Make your benefactor your partner and have an open invitation for them to attend your meetings, events, and social gatherings. If they’re doing what they are with you for the right reasons, then your benefactor wants to be a part of what you’re doing so don’t think of them as “the photographer”, or “the accountant”, they are a part of your team now.

  • Be open to using a business minded approach to your organization. A not-for-profit called Room to Read, which you may have heard of, pioneered the concept of using Fortune 500 Company business principles to NFP’s. While some NFP’s bleed a significant portion of proceeds to overhead, Room to Read took a streamlined approach and used a Starbucks-like growth target when they first opened in 2000 with a library in Nepal. In 2008, Room to Read established a library every 4 hours and distributed a book every 3 minutes.

There are a number of Calgary organizations that link up individuals who want to give back, with those who are looking for a hand up such as Volunteer Calgary. Alternatively, the next time you see a fund raiser, charity race, silent auction, info booth, or hear about a NFP from a friend, ask questions, get involved, and don’t be shy, you’ll be amazed at what you get back when you give something for nothing.