|
|
|
Small Fish, Big Pond
Non-profits brainstorm how to compete for shrinking corporate dollars
|
Business New Haven
10/28/2002
By: Melissa Nicefaro
|
There's not much to gain from being a fair-weather friend. And just like in personal life, the stronger a relationship is in business, the more there is to gain.
That was part of the advice offered to about 75 representatives of area non-profit organizations attending a program sponsored by the Connecticut Council for Philanthropy October 9 at the Jewish Community Center in Woodbridge. The non-profits were there seeking strategies to increase contributions from state businesses.
Business contributions account for a mere five percent of all donations to non-profit organizations, but non-profits would like to change that.
Connecticut businesses are more likely to make monetary contributions to charitable organizations than volunteer their time, even though volunteer assistance is equally important as money for some charitable groups.
Supporting the local community is important to state businesses surveyed by the University of Connecticut's Center for Survey Research & Analysis. The report, conducted late last year, says 78 percent of the state's 200 largest companies and almost 60 percent of general businesses sponsor a community group such as a sports team, educational program or community activity.
Often, however, in soliciting assistance, non-profits don't do justice to their cause and a good enough job of answering why a company should contribute. “Why is your problem more important than someone else's?” asked Christopher Barnes, author of the study.
More than half of businesses surveyed say the effectiveness of charitable organizations has improved in the last five years. However, more than one-quarter of those surveyed say they “don't know” how the effectiveness of service compares to five years ago.
This finding, says the study, suggests that businesses may not have a good grasp on whether charitable organizations have made any improvements to their services.
Barnes says non-profit giving is a two-way relationship: “Just like you don't want someone coming to you when they want something or they want a check, don't go to them only when you need.”
Panelist Elizabeth Monz, executive director of the Arts Council of Greater New Haven, agreed.
“Relationship is an important piece of this,” said Monz. “[Non-profits] should develop concrete ways to talk about what you do and how you do it. And give people opportunities to join your organization. Invite them to your shows. Let them in.”
And it's not just about money, according to panelist Curtis Jennings, executive director of the West Rock Development Corp. He advises businesses: “Don't say, 'Take the money,' and that's it.
“We've been given money for computer training, and now that we've created these computer experts, jobs are important too.” Jennings added that businesses should know what organizations are doing with the money.
Another hurdle non-profits face is New Haven's shrinking corporate base following the late '90s frenzy of mergers and buyouts.
“I've seen the people deciding the fate of my budget move from New Haven to Hartford to Boston,” said Eliezer Lee Cruz of Ronald McDonald House of Connecticut.
Barnes said that distance does not have to get in the way. “Distance can be a driver of whether people give or not, but if you can close that perceived distance gap, you'll be far more likely to receive funds,” he advised.
Patricia Sweet of the Regional Water Authority suggested a more straightforward approach: “I'd get on a train to Boston and take that person out to lunch,” she said. “Otherwise find the person locally who supports the marketing person in Boston.”
Also, keep in touch and follow through, Sweet urged. “I get a myriad of letters come in, saying you'll be in touch in two weeks and I never hear from you again,” she said.
Since corporate funding is expected to drop off in the next few years, such expensive mailings may not be the best money spent.
Program moderator and president of the Connecticut Council for Philanthropy, Nancy Roberts, reminds that business giving accounts for just a small fraction of all giving. Individuals account for the bulk of donations.
All in all, observed John Rathgeber, executive vice president of the Connecticut Business & Industry Association, the economy is changing. “It is more diverse and there are many smaller entities. That has helped the Connecticut economy to better position for the financial storm, but it does make it more difficult for [non-profits].”
New Haven Savings Bank's Paul McCraven, the sole corporate spokesperson on the panel, suggested non-profits better position themselves by targeting senior management and chief executive officers for charitable giving. He noted that boards of directors at most of the non-profit groups are made up of corporate managers and business-owners. “It's a good and unique opportunity to benefit from branding,” he says.
Businesses like New Haven Savings Bank are being asked to pick up the slack left from cuts in government allocations.
“The government is no longer able to take care of these individuals,” said Brent Porges of Catholic Family Services. “It's affecting our businesses and not allowing us to market projects that may be appealing.”
Lisa Comen of the Jewish Home for the Aged agreed: “We can't keep going to residents' families for funding. Where are we to go? There is not a lot out there.”
|
Go FirstGo PreviousGo
NextGo LastGo
to Index
|
|
