Strategy for Good FAQs

1. Who is Susan Hyatt? How did you get involved?

Sociologist specializing in real world strengthening of organizations dedicated to social change
Started out in international development – lived in Haiti and saw first hand out well-intentioned giving efforts had little impact or were poorly conceptualized – didn’t take local customs, cultural and other differences into account.
Worked for last 16 years nationally with nonprofits and government agencies running national service programs like AmeriCorps, VISTA, Senior Corps, and Learn and Serve America. Have seen the impact of their service in addressing local concerns firsthand because of my work in helping them measure their impact. Also, often felt their frustration with not being able to connect in sustainable ways with businesses. But using old school philanthropy or a tin cup mentality. Not thinking about how to join forces with businesses to expand their reach and impact and collaboratively work on addressing social issues.
First workshop was for Governor-appointed state service commissioners from 9 states with Eileen Sweeney from United Airlines Foundation – now Motorola. Great combo of business and nonprofit perspectives and got hooked.
Realized burden was on business owners to figure it out themselves, few resources available for smaller companies.
Wanted to use my 20+ years of nonprofit experience to help bridge the gap between worthy nonprofits and their potential business partners.

2. Why did you write ‘Strategy for Good’?

Heard great frustration among my nonprofit clients about the challenges they faced getting business support. Wanted to expand business people’s sense of what is possible. [Also working on the other side of the coin - expanding nonprofit perspectives on business partnership (not alms for the poor), have a nonprofit workshop in a box toolkit on strategic partnerships and give live trainings.]
Often hard to translate big company success to small business realities
Least publicized component of corporate social responsibility (CSR) – assumption is people should just know how
Often dog and pony presentations with little “how to” information – wanted to write an actionable book to help busy business people give back in some deeper ways so they can experience the kind of positive impact they seek to make in their communities

3. Why do businesses give back?

Primary driver for smaller companies is the heartfelt desire of owners/managers/employees to be actively engaged in their community, to be good business citizens, to give back to the communities that have

supported them – pay it forward
Strengthen their visibility and reputation with the hope of future sales
Expectation of customers and employees that businesses do their part
Building strong communities insure good climate for business

Much of research on how and why companies give has been done with the “big dog,” Fortune 500 companies. A couple interesting facts are individuals give about 75% of the total donations to nonprofits. Businesses only account for about 5%.

4. What are the business benefits of giving?

Beyond the “helping high” and “feel good factor,” people talk about tax benefits (not a huge motivator)

There are four main business benefits:

Reputation, visibility, and branding
Customer loyalty and sales
Employees want to work for companies that care – also increased loyalty, retention, skills development
Access to investors and dollars to grow

5. What are the 5 myths of community involvement?

Myth 1. Business social responsibility and CI is for the large companies only.

Fact: Many people believe that business social responsibility is for the large companies only, such as Nike, Starbucks, Phillip Morris, and ExxonMobil. It is true that these large global companies can have a significant impact positively or negatively on the communities or countries in which they operate and thus need to be mindful of the business practices they employ.

However, the reality is that in the United States, for example, small business is actually the backbone of the economy. According to the US Bureau of the Census, small firms represent more than 99.7 percent of all employers. Many small businesses have always been very tied to their communities and many have been very generous. Small businesses that employ socially responsible business practices from day one, are giving themselves an added advantage to help ensure their sustainability and profitability over the long term.

Myth 2. Community involvement is a “wait to do later” consideration once the business is established, has a solid foundation, and has started to show a profit.

Fact: CI should be a consideration from day one when an entrepreneur or business owner begins to think about starting a business. It is not an add-on for later. Integrating socially responsible business practices including CI, from the beginning, is actually easier and more cost-effective than trying to insert them later and can help build business.

Myth 3. Philanthropy and community involvement activities are fluffy, feel-good, side activities that siphon off valuable resources with little return.

Fact: When undertaken strategically and integrated as part of the overall business building strategy, CI activities can be an essential component of growing the business. CI activities offer an important opportunity for “doing well by doing good.”

Myth 4. Community involvement by business should be motivated solely by altruism.

Fact: Some companies are in fact motivated by altruism and a sincere desire to help communities. As a result, they generally make contributions anonymously to support those issues and organizations that matter to them. However, these companies are in the minority. Most companies expect that, in addition to making a contribution in the community, there is also some business upside for them…if they are truly honest with themselves.

Myth 5. When companies engage in community investment activities, it is self-serving if they tell about it.

Fact: While shameless self-promotion is of course undesirable, getting the word out about how your company is supporting the community and various organizations, is a way to let employees, customers, and the community know that your company cares and is doing its part to improve the community and be a good citizen. Many larger companies have voluntarily developed stand alone annual CSR reports, portions of annual reports, and post information on the website to be more transparent about their efforts. Studies have shown that consumers want to buy from companies that support causes. If a company does not let its employees, and current and perspective customers know what they are doing, it is a missed opportunity to strengthen loyalty, and maintain or even increase sales.

6. What are some of the current trends in business giving?

Move away from passive checkbook philanthropy to deeper and more active involvement through nonprofit partnership and strategic alliances
- Goes hand in hand with trend towards “conscious capitalism. Patricia Aburdene, author of Megatrends 2010, talks about the rising interest and commitment to personal and spiritual development that is beginning to spillover from personal life into the business world. This convergence of forces (called them megatrends) are giving life to updated approaches for how we do business – conscious capitalism.
Increase in strategic links between business products & services/mission/unique attributes of company and choices of causes and nonprofits to support
- e.g., Anytime Fitness – health and obesity NOT save the raccoons…
Narrow focus of what to support with multiple forms of giving to increase real impact
- (e.g., dollars + in-kind + volunteering + ??)

7. What’s new about business giving for the 21^st Century?

Business people want to see how their contributions are making a difference; they want to be more directly involved in making a difference
More collaboration and win-win partnerships with nonprofits
Greater use of social enterprise nonprofits as vendors
Expectation of employees and customers – need to be transparent and share what company is doing in the community
- 85% of consumers have a more positive image of a product or company when it supports a cause they care about.
- 88% of Americans say it is acceptable for companies to involve a cause or issue in their marketing – a 33% increase since 1993.
  - 41% of Americans say they have bought a product because it was associated with a cause or issue in the last year – doubling since 1993.
  - Pooling resources with other businesses to make a bigger impact – e.g., Social Venture Partners

8. What are the biggest mistakes companies make with their giving?

Not being strategic and spreading yourselves too thin – one pack of hotdog buns to every nonprofit that asks, over 1.2 million nonprofits in US
Forgetting business basics – over-focus on social impact
Not asking for what you need directly
Not being transparent about giving – missed opportunity. Difference between sharing and being boastful.
Giving viewed as “a should” with no heart – “goodwashing” only for PR value. Can cause backlash and decrease reputation.
Checking business hat at the door and not offering expertise or asking questions. Sitting back on boards etc.
Not wanting to “burden” the nonprofit by asking accountability questions

9. What tips do you have as food for thought for companies?

Build on company strengths in selecting causes and nonprofits to support
Invite participation not only of employees but also customers/members
Think beyond dollars, how else to leverage good – e.g., think education and action
Check nonprofit status – 250K lost their 501(C)(3) status last year.

10. What are the biggest mistakes nonprofits make when approaching businesses?

Not doing their “homework” about a company – who are they, what do they do, values, who have they supported in the past, etc.
Not personalizing the request – sending out blanket solicitation letters “to whom it may concern”
Not thinking about the business’ needs using a win-win perspective
Only asking for cash donations, not really wanting employee volunteers
Not saying thank you – shocking but true…

11. What tips do you have as food for thought for nonprofits?

Consider what companies have a natural affinity for your mission based on what they do
Think about business partnerships like dating relationship – start slow to develop relationship for the long-term. Get to know them, who they are what they need – not just what they can give you.
Think of innovative ways to get people from the business engaged – creates buy-in and great ambassadors for your organization
Think beyond cash to other resources a business can tap into to support your mission
Communication is key!! Find the balance.

12. What else can you us about your book, Strategy for Good?

Geared for small and mid-size companies that are committed to giving back as part of their core company values and have limited time and resources to figure out how best to do it.
Useful for nonprofits to read to better understand businesses trends and needs. Helps them craft their strategy for approaching businesses for partnerships.
Interviewed 50 companies of all sizes so have lots of great quotes and examples from businesses about their experience and ways they have supported nonprofits.
Book has three sections:
- business trends and benefits of being actively involved in the community
- the seven steps to effective business giving (as opposed to individual giving)
- “cafeteria menu” of ways to engage with nonprofits. Options include contributions (dollars, in-kind, and people) and commerce (cause marketing, vendors, etc.)