I just got home from attending the Denver Business Journal’s 1st annual Partners in Philanthropy event held in the Pinnacle Club at the Grand Hyatt in downtown Denver.  They had a great crowd in attendance which says a lot about the heightened awareness of business and nonprofit connections given our current economic times. 

The first breakout session I attended was “It Pays to Give” with Andy Boian - Dovetail Solutions (moderator), and panelists Rob Cohen - IMA Financial Group, Scott King - ReadyTalk, and Monique Lovato - Xcel Energy Foundation.  It was interesting to hear the differences in focus between the three based on publically versus privately held companies and the oversight involved with regard to their community involvement activities, as well as the differences that are more related to business size.

ReadyTalk was the smallest company represented.  Scott King mentioned they currently have 92 employees and $20 million in revenues - clearly WAY bigger than my company!!  They still view themselves as a young company and have included community involvement from start-up on - wanting to foster a culture of giving and community connection for the business.  ReadyTalk, based on the vision and values of the King brothers, Scott and Dave, is strongly committed to getting their employees directly involved in the community and in fact consider their philanthropic efforts an employee-based program.  Employees present proposals for nonprofit support to an internal committee of their peers that then selects which nonprofits the company will support with cash and services.  Scott mentioned they do not calculate an ROI as giving back is “just the right thing to do” though he has noticed  a strong connection between employee satisfaction and pride in their company and customer satisfaction.  I went to the ReadyTalk website a few minutes ago to learn more…but there is no section on their website that I could find that shares this information externally.  Anyway…they have captured my attention and I am considering changing my web training service to ReadyTalk as my small way of supporting their philanthropic and community involvement efforts.

IMA Financial Group was the medium size business in the group at 511 employees with $1 billion in sales.  Rob Cohen, Chairman and CEO, explained that to the consternation of some business advisors early on, he included a focus on giving back and community invovlement from day one of the company.  To this end, early employee contracts mandated giving back and he created a foundation “on Day One” as well feeling that it was important to build the discipline to give a percentage from the beginning instead of waiting until later when it could be harder due to the larger numbers involved.  IMA has just hired the first Executive Director for the Foundation to continue focusing its efforts to insure the greatest impact.  IMA also selects projects for employee involvement via a Community Action Committee comprised of employees.  Rob emphasized the need to get involved “for the right reasons” otherwise everyone will see through that; it is important to be passionate and really care about the cause(s) the business supports.  While business value is not a motivator in and of itself for IMA, Rob feels their authenticity in giving and being involved has resulted in business coming their way.  IMA did have a community page on their website which gives a paragraph of their philosophy but no details of who they support.

Xcel Energy Foundation respresented the largest and only publically held company on the panel.  Monique Lovato mentioned Xcel has 12,000 employees and 8,000 retirees in 8 states and their Foundation is the largest corporate giver in Colorado.  Xcel Energy focuses mosty of its philanthropy in four areas: education, the environment, economic self-sufficiency, and equal access to the Arts.  Monique explained that Xcel prefers building relationships “with tentacles” or multiple points of engagement as opposed to just writing a check. Xcel makes use of their extensive intranet system to inform employees of opportunities for volunteering.  Xcel matches employee time with dollars and if 6 or more employees volunteer in a group, the nonprofit gets an additional $500 from Xcel.  Xcel also does matching gifts up to $750/year and their employees participate in the United Way campaign, as well. Xcel has several pages on their website about their community involvement.

Great panel and great work!!  Well done all three companies!

On Monday, I attended the O3 Nonprofit Summit in Denver; I was on a panel about Corporate Sector Response to our economic times.  I was struck by how many of the social sector staff attending the Summit still talk about “donors and fundraising” instead of developing integrated win/win partnerships with companies, especially smaller local ones.  For 10 years, I have trained nonprofits nationally on how to partner with businesses.  (Guess I need to do more work in my own backyard!)  I know from first hand experience that nonprofits that can expand their perspective past checkbook philanthropy to really think mutually beneficial partnerships with businesses are able to develop more substantial relationships that last over time.  I am back on my soapbox…   And I truly believe these times call for collective and creative efforts drawing on the best of all sectors.

Today I launched our 2009 survey for nonprofits to collect information about their partnerships with businesses.  I hope to add to the vast amount of resources I already have on the subject tand use it to inspire both nonprofits and businesses to get more invovled with each other.  The survey gauges nonprofits’ sense of their own effectiveness in six areas related to business partnerships.  It is also designed to collect information about nonprofit best practices in partnering with businesses, challenges experienced, tips and strategies for successful partnering, the types of benefits/resources received, and any impact of current economic conditions.

If you are with a nonprofit, I invite you to click the link and complete this survey.  I appreciate your time.  http://www.zoomerang.com/Survey/?p=WEB228VWVAZBC4

A survey for small and mid-size companies will be released shortly.

Also, I will be doing a workshop in Denver on April 28th 1-4pm, Recession Proof Resources: How Smart Nonprofits Design Strategic Partnerships with Businesses.  It comes with a 4 hour workshop, 1 hour consultation with me, a 100 page workbook, and perspective and support from myself and the group.  A steal at $99…but I want to be sure that cost doesn’t limit smaller nonprofit’s participation.  I will have a page up here for sign-ups shortly.  So if you know any nonprofits in Denver, let them know!  And if you’d like me to give a workshop on this important topic in your city, drop me an email.

I hope 2009 finds you happy, healthy, and ready to continue your business giving and community involvement to do your part to make a real difference in our world.  These are tough times for many people.  Daily, I hear so many negative things when I talk to some entrepreneurs and small business owners because of the state of the economy, it can get a little depressing!  I see many smaller business owners pulling back and hardening their protective shell as they think such actions will help them ride things out and keep their businesses afloat.  But I wonder if that will really work…for me whenever I have closed down and “gone underground” to regroup, I ended up shutting off opportunities.  When I have hibernated because I had business challenges that I didn’t want others to know about - figuring I needed to try to figure out the way forward on my own before I showed my face again - I ended up feeling really isolated and alone.  And then things DID go from bad to worse.

At the same time that I see many business people turning inwards, I also see many others with a sense of optimism and hope that together we can “turn the Titanic.”  I have been at several business events in the past couple months where entrepreneurs and small business people (some whose bank accounts I can only begin to imagine) are committing themselves to using their skills, talents, and connections to come up with new solutions to social and economic issues - old and new.  It has been very inspiring to me and helped me stay really positive.

As I listened to Obama’s inauguration speech, two specific sections struck me.  I will share one of those today and the second in my post tomorrow.

“Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched.  But this crisis has reminded us that without a watchful eye, the market can spin out of control. The nation cannot prosper long when it favors only the prosperous.  The success of our economy has always depended not just on the size of our gross domestic product, but on the reach of our prosperity; on the ability to extend opportunity to every willing heart — not out of charity, but because it is the surest route to our common good.”

In my work, I have long been trying to shift the paradigm from “charity” to a greater sense of partnership between businesses and community organizations for the “common good.”  It is one reason I work with companies to be more strategic and intentional in how they offer their support to nonprofits - often encouraging business people to think past checkbook philanthropy.  For me, cutting a check and then turning your back because “you’re done” is self defeating and a lost opportunity to do a deeper kind of “good.”  I am absolutely a fan of capitalism and the market - but conscious/compassionate capitalism.  I refuse to consider that making a profit and running a business that considers the other two P’s (people and planet) are mutually exclusive.  And there are many great examples that doing all three is totally possible and even preferable for long-term success.

We are at a unique point in history - at least in my lifetime - where so many people are willing to step up - really step up - and be part of the solution not just whining couch potatoes.   Some of these have never paid attention or been active in civic life before.  They are collaborating for the common good and to rebuild our trust and pride in our country.  Won’t you join us?  What can you and your company do?  Remember my mantra - “You are never too small to make a difference.”

So, so exciting….BusinessWeek Small Biz published an article yesterday online, Make Giving Part of Your Business Strategy…and I am featured in it!

Amy S. Choi, the journalist that wrote the article, contacted me a couple months ago for an interview.  We had a great conversation and I really liked that she was writing an article that would include some “how to” tips for small businesses.  During our conversation, as I described the eight steps of effective business giving that I use in my work, I also mentioned some of the great companies I had interviewed for my book as examples to make my points.  Later I sent her several folks contact info, should she choose to get more information.

From my list, Amy chose to also interview Jason Linkow, owner of Metafolics Salon here in Denver.  A great choice!  The man is so nice and a savvy, businessperson with a lot of integrity.  I have written several earlier blog posts about him.  I have been checking daily for this article.  Today I found it by searching for his name on the BusinessWeek site. (Never though to search on my own…duh!)  So there was a great photo of Jason and Amy’s really well done article.  And Amy quoted me, as well - several times actually.

“Once you’ve settled on a cause, think about the various nonprofits that support it, and ask which would help you best achieve your business goals. “There is a way to be strategic and get business value out of your giving, and still do it in an authentic way,” says Susan Hyatt, founder of philanthropy consultant Business Nonprofit Connections. Are you trying to raise visibility? In that case, choosing a small organization to which you can become a major benefactor would be a good strategic move. If you’re looking to improve recruitment and retention or to boost morale, canvas employees for their opinions about worthy causes. For those looking to increase sales, it’s worth asking if a nonprofit’s other patrons might be potential clients….A lot of companies don’t know exactly what they’re giving, which is ridiculous,” says Hyatt. “If philanthropy were a business unit, you would know what you were spending to the penny.”

Then establish some metrics. That means preparing to track what your employees are doing and how much time they give, and the value of in-kind gifts and pro bono services. If you’re giving cash, ask your organizations to tell you how they spent your money, and consider the payback. Did you gain greater visibility or any new clients? You don’t need to quantify the returns on every dollar spent, but if you don’t keep track of what you’re doing, it’s hard to know the benefits either to you or your cause.

If you’ve chosen an organization you don’t already have a relationship with, start building one by contacting either the development director or the executive director, depending on the size of the nonprofit, says Hyatt. If you know someone on the board, start there. Or, if you want to support a specific program, reach out to the program director. Although the frequency of your contact will vary depending on what kind of support you plan to offer, plan on a minimum of quarterly updates. This will give you a chance to explore future opportunities and evaluate the impact of past giving. “You want to create new opportunities, not show up and deliver a check,” says Hyatt.

It’s important to start small. As your business grows, or shrinks, you can adjust your giving accordingly. Decide where the donations will come from in your budget, whether it’s human resources, public relations, or marketing. Appoint a person in the company to monitor these efforts, making sure that the work is recognized as part of their job duties.

You’ll also want to think about how to celebrate your success. There is a fine line between good marketing and appearing self-serving, and the instinct may be to resist saying anything. But remember, most customers want to do business with companies that do good, says Hyatt.”

Very fun!

Because of my work with AmeriCorps and the Corporation for National and Community Service, a colleague from JBS International - Aguirre Division sent me an email link today to a very interesting article in the Washington Post on Friday, November 28th (page A27) by Paul C. Light, Obama Must Mobilize Supporters to Help Nonprofits. 

In the article, Light says that Generation “O” - for Obama - “is ready to do its part in putting the country on a more hopeful path.”  He makes the case that President-Elect Obama could mobilize “Generation O to help the nation’s struggling nonprofit sector” as the nation’s 1 million other charitable organizations and their 11 million employees are not flourishing.

He states, “there is already plenty of evidence that the sector is suffering. It is often the first to experience recession as households cut back on discretionary contributions and the last to recover. Of the nearly 1 million nonprofits up and running, as many as 100,000 will fail over the coming six months.”  He makes the case that “what the nation needs is an emergency program to rescue failing nonprofits while protecting healthy nonprofits from further job freezes and cuts.”

He talks about two possible initiatives which could help the sector.  “The first would be a loan fund for distressed nonprofits. This program would be administered by the Corporation for National and Community Service, which has shown its ability to work with states and nonprofit intermediaries to funnel money into needed activities, including the recruiting, training and deployment of volunteers. With an interest-bearing payback provision, the loan fund would carry minimal taxpayer risk and would be directed to distressed nonprofits that can prove their ability to spend the money to increase effectiveness.

The second initiative would be a call for Generation O to volunteer. This volunteerism cannot be the run-of-the-mill, episodic engagement that increasingly characterizes volunteering in America — the kind of come-and-go volunteering that rarely helps nonprofits fill vacancies in front-line service jobs. Rather, Obama should call upon his supporters to make durable, year-long commitments to specific high-impact jobs.”

Lots of things brewing!  What is true is that the Governors’ Commissions on National and Community Service (aka state service commissions) - the state level organizations that administer AmeriCorps and promote service and volunteerism as a strategy to address local issues - have more than 14 years experience with what it takes to run effective nonprofit programs to maximize the impact of scarce resources.  The AmeriCorps and other programs they administer and support are well-known for being great stewards of dollars and leveraging big impact from a minimal investment.  They also have huge networks within their state with nonprofits, government agencies and the private sector.  Hopefully they will be at the table to help figure out how to best mobilize citizens to make a difference and counteract the impact of tough economic times.

Read Light’s full article- it’s great food for thought!  Go National Service - your time to “explode” and show your true value may be near!!

The last ten years I have been “all about” strategic business nonprofit partnerships.  I first truly became committed to this topic as a result of my consulting work with the national network of Governors’ Commissions on National and Community Service and the AmeriCorps programs they fund in their respective states.  In trainings I give on performance measurement and evaluation, I always find myself up on a soapbox telling program staff they HAVE to measure their impact –for decision-making and continuous improvement of their programs and to share with community stakeholders (including businesses) to leverage additional resources and grow their support base.

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I have been fascinated by business engagement with nonprofits for more than ten years.  However, the roots of my interest in this topic run deep.  To start with, I grew up in rural Maine in a family of four that values fairness and equality above all else.  Jokingly, I always say I am from the “buy a box of six doughnuts and you know everybody gets 1.5″ family.  And how many times did my father tell me that I need to be as respectful and polite to the janitor of the building as the president of the United States?  That being a good person on Sunday on the way to church is not enough - one needs to be a good person all week. 

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I was dismayed to learn this week from my favorite baristas at the Colorado and Arizona Starbucks in Denver that the Gold Card Pilot Program that I got to participate in ended October 31.  Guess I did not read Starbucks Gold News #3.  So the pretty white card with my name on it reverts to be just a regular Starbucks card now.

Their new membership product is also called a Gold Card and costs $25 a year.  Benefits include a 10% discount on all food and beverages at the time of purchase which is great and comes with three coupons for 10% off other Starbucks purchases.

However, I now see no mention of the piece I was drawn to initially with the pilot program - the percentage back from my cappuccino addiction to a nonprofit.  So I guess they discontinued that feature.  Granted my whopping contribution through the end of September was only $2.58 but it was the principle of getting to choose whether to take the 10% off myself or contribute it that I appreciated.  Bummer.  I see they have now decided to become part of Product(RED) - maybe they decided that was the better way to go?

I bought one of the new Gold cards anyway.  It is still my destination of choice for my morning dog walk and I love the spinach feta breakfast wrap.  Onwards…

I have had the privilege of consulting and training nationally with the Corporation for National and Community Service, the federal agency responsible for funding nonprofits to run national service programs (AmeriCorps, VISTA, NCCC, Senior Corps, and Learn and Serve America) for 14 years with the Aguirre Division of JBS International.  I added it up last week and I have done trainings in 48 of 50 states, Guam and American Samoa -training over 10,000 people!

As I have said before, I am a true believer in the role nonprofits, service and volunteerism can play in local communities to make a real difference because of the great work I have seen first hand all across the country.  When the Bush Administration came in, those of us working in National Service were nervous about the potential impact of the new administration.  As it turned out, George Bush did end up being supportive of national service so AmeriCorps and the other programs continued forward much as before though funding has been cut back each year.

During this political season, both candidates for President spoke positively about national service and volunteerism which was very exciting.  Now that Obama is President-elect, it appears AmeriCorps and national service will be a featured initiative under the new incoming administration which is GREAT!  Check out the transition website to get a sense of the tone!

It seems the Obama Administration will make some important positive changes which I find exciting!  The San Francisco Chronicle reported, “Obama has pledged to create a Social Entrepreneurship Agency within the Corporation for National and Community Service, to generate more venture capital for socially conscious startups. The new agency would make it easier for small nonprofits to get federal grants, plus come up with a results-driven accountability system so government officials could make better decisions about which charities to fund.”  Check out the full article by Meredith May.

Michelle Obama has firsthand experience with AmeriCorps and seems very supportive.  A recent Newsweek article by Richard Wolffe reporting on his interview with her included the following two questions and answers.

“You want to continue what you did with Public Allies [ which trains young people to become leaders of community groups and nonprofits] as First Lady. What‘ s your thinking on how to go about that?
Barack is talking about a deeper investment in national service; that’s been part of his platform. He’s been meeting with some of the leadership of the AmeriCorps national-service movements—the Public Allies, the Teach for Americas, the City Years of the World—and figuring out how do we use that model, expand upon it, and help use that as a more creative way to defray the costs of college for young people and get all Americans really engaged. What AmeriCorps showed me, during the time that I worked on it, is that all these resources of young people, and not-so-young people, as I call them—because AmeriCorps is not just for young adults but people of all ages—you can fill a lot of gaps with the help of community-service hours. The young people in my program worked as program directors. They worked with kids and they worked in parks and they worked with nonprofit organizations that didn’t have the resources to bring people in full time. So this is one of those clear win-wins. You can help kids pay for school, you can get needed man-hours into really critical things like the environment, senior care, Head Start—a whole range of things. And you get the country more focused on giving back.

There are elements of this already in place at the national level. Is it just a lack of resources, or insufficient focus and organization?
Fortunately, [President] Bush kept AmeriCorps, but it was significantly defunded. I haven’t worked on AmeriCorps in a while, so I don’t know how the funding cuts have really affected them … When I was with Public Allies, and AmeriCorps was at its height, there were resources for expansion. So you had the new program in Chicago that I started. Then there was something going on in Milwaukee, and they were looking at West Coast offices. But I think with those funds reduced, people had to stop that kind of growth. So you’re just limited in the number of slots that you can have for young people or seniors or what-have-you.”

The only downside is that the budgets for such programs are decided over a year in advance so any potential reversal of recent cut backs and austerity measures may take a while to come into being.  In the meantime, these programs and the nonprofits that sponsor them continue to offer great opportunities for your company to get involved locally and make a real difference.  Check the AmeriCorps website to find information about programs you can partner with located in your state.

There are six myths commonly believed to be true about business and its role in society and local communities today that I would like to debunk.

Myth 1. Business philanthropy is for the large companies only.
Many people believe that business philanthropy is really only for the large “rich” companies such as Nike, Starbucks, Levi Strauss, or Exxon Mobil among many others. While it is true that these global companies operate on a significantly larger scale with more resources at their disposal than small companies and thus can have a significant impact either positive or negative on the communities or countries in which they operate. So changes in their approach to giving back can result in significant impact for nonprofits/NGOs when done strategically and intentionally.   However, it is also true that your company is never too small to make a difference if you also engage in strategic philanthropy. 

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. Small businesses, are defined by the Office of Advocacy, as companies with fewer than 500 employees. Small businesses employ more than half of all private-sector employees and generate 60 to 80% of new jobs annually. In 2002, there were approximately 22.9 million small businesses in the United States according to Office of Advocacy estimates. Of this number, there were 5.7 million firms with employees and 16.5 million without employees.

In light of such numbers, it is clear that small business is a powerful force in the United States today. So ensuring that small businesses like yours understand how to give back strategically and “profit with values” is essential.  Just think about the possibilities for positive change in our communities if even 50% of small businesses engaged in strategic giving!! 

“You don’t have to be a big company before you can do much in the community. Even as a small company, there are many ways you can support community organizations…the smaller businesses around here have made a lot of difference.” –Chip Bair, Owner, BeauJo’s Pizza, Idaho Springs, Colorado

Myth 2.  Business philanthropy is “wait to do later” considerations once a company is established, has a solid foundation, and has started to show a profit.
Strategic business philanthropy should be a consideration from day one when an entrepreneur or business founder/owner begins to think about starting a business. It is not an add-on for later. Integrating socially responsible business practices including community involvement, from the beginning, is actually easier and more cost-effective than trying to insert them later.

When starting a business there are many things that you need to consider about your business such as its structure and mission, identification of products and potential customers, effective marketing and sales, and securing investments. In each of these areas. there are choices that you need to make when designing the business and developing the business plan. Integrating socially responsible practices (including community involvement) from the beginning has been shown to help strengthen the business and increase its profitability. There are numerous proven business benefits to engaging in strategic business philanthropy.  For specifics on the business benefits, sign up for my free eCourse.

“To do this, you don’t have to be a Microsoft and have a huge foundation with millions and millions of dollars. You really should plan things right from the beginning and step into it. I think EVERY company should look into how they will give back right from the beginning.”  –Maria Simone, CEO of Signature Accents

Myth 3. Integrating business philanthropy into company culture is cost prohibitive for a smaller or startup businesses.
While adoption of certain policies and practices have some up front costs associated with them, in the long run, these expenditures have a significant return on investment, helping save the company money and increase profitability. For example, companies that provide volunteer opportunities on company time have found that employee motivation, productivity, and retention are improved. In the long run the company saves money increases its profitability.

There are so many ways to support and partner with nonprofit organizations beyond the old school check philanthropy model.  Many smaller companies do not have a philanthropy budget yet - but there are so many other ways to get invovled that might have even more impact that cutting a small check!

Myth 4. Philanthropy and community involvement activities are fluffy, feel-good, side activities which siphon off valuable resources with little return.
When undertaken strategically and integrated as part of the overall business building strategy, business philanthropy activities can be an essential component of growing the business. Philanthropic involvement with nonprofits offers an important opportunity for “doing well by doing good.”

In fact, many businesses no longer use the terminology philanthropy or community involvement. Instead, in recognition of the possible returns such activities can provide, they are called community investments. Such community investments can have a significant impact on the companies reputation and sales, employees satisfaction and productivity, in addition to making a valuable contribution and being part of the solution to addressing local social issues in the communities in which they operate.

Myth 5. Business philanthropy should be motivated solely by altruism.
Most smaller companies in fact ARE motivated to support nonprofits by a sincere desire to help communities. However, those that are totally altruistic in their approach make their contributions anonymously to support those issues and organizations that matter to them. Such 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 from their philanthropy - such as enhanced reputation and visibility.

Having a strong business community helps improve local economies. Having strong local economies helps ensure higher quality of life and access to services for all members of the community, including employees of the company. To effectively improve local conditions, there must be a partnership between government, community organizations, and business to make it happen. Business is an essential and powerful component, without which change is hampered. In the spirit of true partnership, why shouldn’t both the business and a community organization with whom they are engaged both benefit? Ensuring that the relationship is not one-sided helps insure that the relationship is not a one-shot deal and can be sustained and deepened over time. Both sides need to feel there are benefits from their perspective or the relationship will be short-lived which can be a missed opportunity.

“We absolutely do strategically link our community involvement with business goals.  We are for-profit and very proud of that fact.  The link between community investment and the corporate strategic level for us is about brand recognition - good will goes a long way with that.   You can’t quantify it on your balance sheet but it definitely helps to differentiate you from the other players in the marketplace.” –Ron Baumbarger, BitWise Solutions 

Myth 6. When companies engage in community investment activities, it is self-serving if they tell about it.
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 of the larger companies have self-selected to develop stand alone annual corporate social responsibility reports, portions of annual reports, and post information on the web site 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 current and perspective customers know what they are doing, it is a missed opportunity to strengthen loyalty and maintain and even increase sales.  Remember, 87% of Americans are likely to switch from one product to another (price and quality being equal) if the other product is associated with a good cause, an increase from 66% since 1993.