The Profit in Giving to Non-Profits

By Gwenda Hiett-Clements

According to many leading business executives you and your

business can definitely profit from giving to non-profit organizations. And

it’s not necessarily your financial bottom line that will reap the rewards —

it’s the heart line that gets the real payoff.

“I think there are two reasons businesses support community

non-profits. One is idealistic — it’s just the right thing to do. If you can

afford to, if you have more than others do, it makes sense to do that. From the

self-interest standpoint, it is good business. If you improve the community,

you improve the business climate,” says Laurel Smith of Gravina Smith &

Associates, Inc., volunteer chair of this year’s area United Way campaign. The

United Way acts as the umbrella organization for 50 local charities.

David Lucas, chairman of the Bonita Bay Group, a company

locally known for community involvement, says there is no one reason why people

give to charity. “People give to charity for a number of reasons — ego,

recognition, altruism — it depends on the individual,” he says. “When you have

an opportunity to help and that opportunity is intersected by a need ... that

equals a responsibility to get involved.”

Following that responsibility, business leaders do see

tangible benefits. They see the impact community giving can have on the working

atmosphere and their employees.

Buddy Moss, Publix Super Markets district manager, has seen

United Way contributions come back directly to Publix employees. Last year two

Publix employees received help when they lost their homes to fire. And, Moss

says that employee involvement forms common bonds and brings a feeling of

family back to the workplace.

“It puts everyone in the store in a mindset of helping the

community. And, it’s a lot of fun. When I first started to work at Publix, it

was closed on Sunday and employees used to get together for family picnics.

This lends itself to that same atmosphere — a group pulling together and having

a great time. In the end it results in profits for the store. Employees feel

they are part of a team, a family. Also, they saw the direct result of their

work going to someone we knew who needed it. It brings it home.”

That’s a feeling several local banks know well. So much so,

that Bank of America specifically created a position to focus on the bank’s

charitable giving — vice president of community relations for Lee and Collier

counties. Bethanie Mutter, who holds the position, says her personal benefits

are direct.

“I collect information for local giving and my

recommendations go to the Bank of America Foundation,” Mutter says. “I have a

great job because it allows me to get involved with the organizations and I can

see where dollars make a difference.”

Mutter stresses the importance of employee involvement in

charitable decision making. She says that bank employees took a vote on one

charity to support to make more of an impact. “By

focusing on that one charity, we were able to get the

greatest number of people involved in this year’s March of Dimes walk. It’s a

lot of fun for them and it has more value if it is something they believe in,”

she says.

Charles Idelson, CEO and chairman of the board for SunTrust

Bank of Southwest Florida, echoes Mutter’s belief that the greatest benefits

come with personal involvement. “I was invited to go to [Habitat for Humanity]

to help raise a roof on a house and the experience was so great I have been on

the board for five years,” he says. “Volunteers can turn their work into a fun

project for the whole family. It’s a way to teach your children how important

it is to get involved and help other people.”

However, getting involved takes time and working people

don’t always have extra time to spare. But, Harlan C. Parrish, president and

CEO of the Southwest Florida Region of Colonial Bank, doesn’t let that stop his

employees. He believes in giving them time during the work week to participate

in programs. Employees work with educational programs such as Junior

Achievement and they also participate in the United Way Loaned Executive

program which sends an employee out on bank time to aid United Way non-profit

agencies.

“In addition to giving people a good feeling it sends the

message that there is more purpose in work than just profits,” Parrish says.

Regarding the financial bottom line, leaders agree thatstyle="mso-spacerun: yes"> having employees involved with local

service and non-profit organizations to get to know more people can lead to

more business. However, they emphasize that you shouldn’t go into giving with

the goal of making more money.

“We encourage our management to become involved in at least

two community activities for personal and professional development. That

creates visibility for the company and provides networking in addition to

providing personal enrichment,” Parrish says. “Just giving money is important,

but it does not include self-development. It is part of our stewardship to

give.”

Giving is even part of the foundation of some companies.

John Pollock, executive vice president of Oswald Trippe & Company, Inc., an

employee-owned independent insurance agency, says that when the company was

formed, Gary and Gay Trippe determined that being involved in the community

would be part of the company’s culture. Each employee’s business plan includes

time allocated to community involvement.

He says there are benefits from the sales point of view.

“It’s an opportunity to meet decision-makers, make contacts on a neutral level

because that fits with the company philosophy of building business on

relationships. If you boil it down, it’s your work. If you are going to spend

time, you might as well make it fun and enjoy it. Getting to know people

outside is just part of culture here. And the bonus is it fosters team work,

brings us together on a personal level.”

Another benefit is positive community perception of the

business, explains Steve Shimp, president of Owen-Ames-Kimball. He gets his

employees involved by making their work skills available to the community — by

building projects for non-profits at cost. The company has focused their

efforts in the Dunbar area where they built the Habitat for Humanity warehouse

at no fee.

“As a company it sends the right message to the customers.

We keep our business close to home and people perceive us as a good company,”

he says. “There have been times when I am working on a contract for someone and

they say, ‘Steve, you know we appreciate what you do.’ That’s rewarding.”

Shimp believes if Owen-Ames-Kimball spent the time and money

on entertaining — taking clients out for dinner and golf — that they do on

community efforts, they would probably have more business. “It just wouldn’t

feel as good,” he says.

Advice from the Experts

The seasoned business leaders have common advice to

businesses wanting to initiate a community-giving program.

First, get in touch with United Way organizers. “If you

can’t do the research yourself, you can contribute to 50 different agencies and

the money stays in your area,” says Lucas. And Parrish adds, “I look at giving

to the United Way as an insurance policy.. If we have a hurricane and we need

the Red Cross, they’ll be there through the support of United Way.”

Next, involve your employees in charitable decision making.

“I would meet with the employees and see what their concerns are — let them

vote, do it the old democratic way — so they can rally around a cause they

believe in,” says Parrish.

Shimp agrees. “If you focus on your employees then you find

they will follow their money with their time.”

Finally, make sure that you and your employees are directly

participating in the charitable efforts. Participation is the key to any

successful program — the profit truly goes to the non-profit and the employee.

“All of us should be giving back as corporate citizens, but

if small businesses can’t afford the dollar commitment, there are so many

organizations looking for volunteers,” Idelson says. “And the more you get

involved, the more you want to continue your involvement.”

And no matter what you decide to do, whether it is giving

money or giving time, make sure you are committed to the project, says Pollock.

“The main message is to be involved. If you are getting on a board of directors

to increase your business, you’re in it for the wrong reasons. The

organizations are understaffed, under budgeted. You have to share your ideas,

your expertise. Help with fund raising. You’ll make it a better place and learn

to appreciate what people who work in non-profits do because they want to, not

because of pay. It’s nice to be around people who like what they do as a labor

of love. It makes you say, ‘I should do more myself!’”

Gwenda Hiett-Clements is a Sanibel-based freelance writer.