Reducing charitable giving for a corporation does not have to be emotionally challenging or community-image deteriorating. Creative thinking can increase a corporation’s contributions to the community while, at the same time, reducing the budget.
Corporate Donations: Beyond Money
Local charities learn to rely on donations from major corporations. Breaking the news to them that the charitable budget has been reduced comes close to being as difficult has having to layoff a highly favored employee. Instead, by increasing a corporation’s involvement with charitable organizations greater benefits can be generated for both parties. Employees working as volunteers at a charity is one example of an option other than just giving money.
Sharing the Workload
An example of teamwork between corporations and charitable organizations is a workforce placement program. Individual or group work crews can be provided by charitable organizations dedicated to assisting those with physical challenges. Most people who are challenged in one area tend to excel beyond a normal capacity in other areas. Typically when hiring challenged individuals, the charitable organization will provide a supervisor at the company at no cost and provide sensitivity training for other employees. The organization often covers the cost of worker’s compensation and liability insurance as well.
This option will reduce costs associated with advertising, training, employee benefits and interviewing. There are tax incentives related to hiring in this manner. Companies gain employees who have a retention level well above the national average.
Outsourcing as a Gift
Adjusting a business model to include outsourcing activities like packaging, assembling, labeling, light manufacturing, and mailers to a work activity center in your area is another way of greatly increasing contributions to the community and increase your cost efficiency.
Exceed, a non-profit organization in California, operates an incredibly efficient workforce of 450 people in an 80,000 square foot manufacturing warehouse. They pride themselves with on-time deliveries, 20 years of service by long term employees and quality workmanship. Some of their contracted companies include:
- California Highway Patrol
- Riverside County Municipalities
- Bradshaw International
- Industrial Threaded Products
- Eastern Municipal Water District
- Stretch Plastics
This is an example of the many work activity centers available around the world.
New on the Horizon
Many charities have not yet become aware of this in-kind donation so make sure to mention it so they can consider the option for future fundraising.
A few collection agencies have formed partnerships with non-profit organizations allowing corporations to donate account receivables to the charity. The charity becomes the owner of the paper and as it is collected, a portion is donated to the organization.
The benefit to the originating company is; rather than just writing off uncollectible debt as a business loss, it can now be categorized as an in-kind donation to a tax exempt organization. A CFO and tax professional should be consulted to estimate the value of the receivables; a matrix based on age of the debt and category of debtor should be considered also.
Winston Churchill once said, “We make a living by what we get, but we make a life by what we give.” When a company budget looks like it can’t afford to give, think again, again and again. Other options are available.
W Denis Nurmela - - Built multi-million $ companies from scratch - Church & Non-Profit Leader - Educated & Avid Reader - Coach, Consultant, ...
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