When they think of raising money from the business community, most fundraisers think of the large national companies that are household names, such as Coca-Cola, IBM, Home Depot, American Express. I want to encourage you to remember the smaller, local companies in your area.
In October of last year, The Chronicle of Philanthropy ran an article entitled “Making a Big Difference” that reviewed the results of a survey of more than 1000 small business owners in Madison, Wisconsin, about their charitable giving. The survey findings for this particular city indicated that most giving by small businesses goes to social service organizations, and these organizations are chosen through personal relationships between the business owners and the nonprofit.
I don’t know whether these findings would hold up nationwide, but they are certainly fodder for thought. The basic message is don’t forget smaller, local companies. I’d go a step further by suggesting that you might want to start with in-kind gifts. Such gifts are easier and less expensive, especially in the current economic climate, for the company to provide. A relationship that begins with an in-kind gift may ultimately produce monetary support as well.
So what kind of gifts am I talking about? Meeting space, a gift certificate for employee or volunteer incentives, a product or service for your silent auction, and expertise of the company’s staff to name a few.
Some nonprofits are looking for sponsorships from the corporate world. Unless your nonprofit is sufficiently large and well-known to provide significant publicity, most of the “household name” companies will not be interested. But a small, local company might be interested in a sponsorship. For instance, a local restaurant might be willing to donate profits from the sale of a particular entrée to your organization one week. A supermarket might set aside a specific day of the week where a percentage of profits will be donated to your organization. You, of course, would want to encourage your constituency to visit the restaurant and order that entrée and to do their grocery shopping on the day that would benefit your charity.
Let me offer one caution here. Companies, large and small, usually want publicity for their support. Understand all expectations before entering into an agreement with a local business or a large national company. Also, be very aware of the public perception of your organization if it is affiliated with a specific company. Would your reputation be damaged by affiliating yourselves with a particular company? Your organization’s reputation is one of its key assets and should not be compromised for a donation.
If you would like to learn more about corporate giving in general, you might want to consider the Foundation Center’s classes covering this topic on the web and on-site. The Foundation Center – Atlanta offers a free class on-site about once per month called Introduction to Corporate Giving. Check the Atlanta calendar for exact dates and to register.
The Center also offers a free 60-minute webinar with the same title about once per month. Check the webinar calendar for times and registration.
There are a number of articles and books on the topic of giving by companies. You can find them in the Catalog of Nonprofit Literature at the Center’s website using the search term "Corporate philanthropy".
What experience have you had with fundraising among smaller and medium-sized companies? Any tips to share with your colleagues? What experience have you had with in-kind gifts? How has the economic downturn affected your donations from businesses?
Pattie Johnson, Director, Foundation Center – Atlanta
Dr. Helene Gayle, a 54-year-old pediatrician by training, heads the Atlanta-based organization CARE, which is dedicated to fighting poverty worldwide. While Gayle has spent the majority of her career working for nonprofits (including the Centers for Disease Control and the Gates Foundation), she has relied on lessons from the corporate world to help her organization improve its handling of aid overseas. Currently, CARE has developed a partnership with UPS to ensure that disaster relief can reach affected areas quickly and efficiently. 
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