North Star featured in Boston HeraldOctober 26, 2008
Donations can be boost in down times
Small Business Matters By Jennifer Heldt Powell
Debbie Kneeland, the executive director of a popular after-school program, has had to turn down requests for donations this year. Her budget is already tight and state funding cuts are going to make it even tighter.
In these tough economic times, small businesses have to scrutinize all of their spending, even what they give for good causes. In fact, nearly 40 percent of small business owners gave less than last year, according to a recent survey for the Chronicle of Philanthropy and Advanta Bank Corp.
Many still want to give – 43 percent said they don’t feel they’re doing enough. It matters to consumers. More than 80 percent said they’re likely to switch from one brand to another if it supports a good cause.
If you can’t give more, then it’s time to give smarter.
Sponsoring a soccer team serves a dual purpose, Kneeland said. It allows her to publicize the program while promoting its underlying mission.
“We like to connect with the families we serve in a way that makes a difference for the kids, she said.
Kneeland sees the issue of giving from both sides. She has to market the nonprofit after-school program to draw in clients and she has to raise money to support it.
Sponsoring events, donating products for an auction or giving free services to a charity can be among the best marketing strategies for a small business, if it’s done right.
Find charities that resonate with you and your company, suggests April Williams, principal of North Star Marketing.
“What fits with your company – do you support the causes’ values and the way they go about things?” she said.
Her company recently donated over 150 hours of public-relations services to a fund-raiser for the Gloria Gemma Breast Cancer Resource Foundation because that group’s work is important to her and her employees.
When you have fewer dollars to spare, look to those charities that will help you target your current and potential customers. If you want to reach parents, sponsor a local sports team or donate something for a parent association auction, for instance.
If you have no dollars to spare, consider other options such as donating your time.
“It’s a way to get involved and have an impact on the nonprofits that are doing great work, and you don’t have to write a check,” Williams said.
To make the most of your donation, look for ways to publicize it. “Many times (small business owners) don’t think about that,” said Ami Kassar, Advanta’s chief innovation officer.
Maybe you’re only giving for altruistic reasons, but consider this: If it boosts your business, you’ll have more to give.
Ask that your name be put on a banner at the event, announce the gift on your Web site or send out a press release.
Telling people about the donation isn’t just about tooting your own horn; it also highlights the charity and may encourage others to get involved as well. << Back to News |
Still, on Sunday mornings a young soccer team hits the field in Winthrop with the name “For Kids Only” emblazoned on their uniforms.