Profit sharing

How your small business can make a big difference.

Collette Parker

December 19, 2007

The Christmas trees in Macy’s have been up for weeks and your neighbors have had their Christmas lights on since Halloween (or did they ever actually take them down from last year …?). And when you hear the unmistakable ringing of the Salvation Army bell outside a local store, it’s another reminder that the holidays are here, and it’s again time to think about giving – where it matters.

Since your business is based in Atlanta, it really does matter. Atlanta's businesses are significantly more involved in the community than almost any other city, says Jennifer Levine Hartz, president of Corporate Hartz, a local consulting firm matching businesses and non-profits across the United States.

After Salt Lake City and Minneapolis/St. Paul, "Atlanta's business community, absolutely, has the most community involvement, and to a much larger extent than other cities I've seen," Hartz says. "It goes back to when Ivan Allen brought the city together around race relations, and that tradition has stayed."

Atlanta companies follow a proud tradition of giving – as a company giving to one or more charities; or in the form of holiday gifts – to employees and clients.

So if you're making donations this holiday season, what, exactly, is an appropriate gift?
CharityWeb
In the name of employees

There are several ways to donate in the name of employees. As a company, you can align yourself with a particular non-profit based on industry. For example, if you're a restaurant, give to a food bank. If you're in the paper industry, give to a charity that plants trees. The president of the company or the HR manager can arrange a donation in a small amount for each employee.

So should the employees care? Does a card with a $25 donation mean anything?

"Small amounts are very, very meaningful," Hartz says. "If it's a small amount for each of your 40 employees or 100 of your best customers, it turns out to be a bigger amount. It's certainly money better spent than on a fruit cake."

Companies also can make it more personal for the employees. For example, a company may promise to match employee donations to individual charities (For every dollar the employee contributes to his favorite charity, the company will donate X amount.).

Charitable giving through employees can also be used as a motivation tool, says Riz Shakir, president of Six Disciples Atlanta. "I've seen companies say to employees, ‘We will donate X amount to your favorite charity based on certain criteria, such as our profitability, or everyone shipping on time, etc.'"

As the CEO of an Atlanta start-up, Shakir created a year-long giving program. "We put away one percent of our profits into a fund all year. The employees got to nominate charities, and then vote. We distributed the money in proportions.

"People felt good about it because it was their decision, and the focus was all year long. We included the fund totals in the employee newsletter every month. It perpetuated the idea that giving is good to do all year long, rather than holidays. I'm Jewish, and the other Jewish employees didn't feel left out because it wasn't only being done at Christmas. It didn't matter what you celebrated. I felt it really brought people together," Shakir says.

Another way to focus on giving back is to take a company volunteer day. Start a tradition of doing a volunteer project during, or just after, the holiday season, Hartz says. "If possible, engage the whole family. I tell my clients all the time – people want more time with families, and all business does is take away from family time. A company-wide, family volunteer day accomplishes two goals: It keeps employees connected with each other, and it affords employees more family time," she says. Of course, you'll want to consider an activity that is designed for large groups, like the Food Bank.

And in the name of clients

Companies also choose to make charitable donations in the names of their clients, in the place of holiday gifts to them. These donations can take almost limitless forms: from a preprinted holiday card saying that the company has made a donation in the names of all its clients to a certain charity; or individual cards writing that a donation has been made in their name; or a gift where the client plays a part in selecting the charity. Hartz recently received an e-mail from a client saying they would be making a donation in her name, and they listed several non-profits. Hartz simply had to choose the organization from their selection and e-mail it back to the company. "That was something very personal," says Hartz, a trend she sees increasing.

Plus, the e-mail was a very inexpensive way to share the donation; and the cost of the card is something to keep in mind. Especially if you're a small company, "If the holiday card looks like it costs as much as the donation, it feels false and it's transparent to everyone. Modest cards look better. If it looks too costly it seems incongruent," Hartz says.

Use recycled paper if you're sending paper, she suggests. Donating a bunch a trees and then chewing them up for your holiday cards also seems incongruent. It will be more heartfelt if it's on recycled paper.

So are these meaningless gifts? Would employees rather get the cold cash themselves and employees rather a box of donuts? Actually, the donations mean more than you may think. According to a Cone Corp. survey, 77 percent of adults indicated that their company's commitment to social causes influenced their decision to work there. Being part of Atlanta's business community carries a significant responsibility of giving back, but the gifts ultimately return to your front door with a satisfying thump.

When considering charitable donations, look to these local experts first:

Trees Atlanta
For each card purchased, Trees Atlanta volunteers will plant one shade tree in an in-town community.

Zoo Atlanta
The natural rate of extinction on Earth is one or two species per century. Scientists estimate we are currently losing up to 100 species per day. You can sponsor an animal for as little as $50.

Georgia Center for Non-Profits
Georgia's association for nonprofit, charitable organizations. Their mission is to serve, strengthen and support Georgia's nonprofit community.

The Community Foundation
Helps donors and families meet their charitable goals by educating them on critical issues and matching them with organizations serving their interests.

Foundation Center
The nation's leading authority on philanthropy, connecting nonprofits and the grant-makers supporting them with tools they can use.

Want to share ideas on what you do for your clients and / or employees during the holidays? Visit the Catalyst community forums for further discussion on gift giving ideas.

(© Photographer Credit: David Coleman | Agency: Dreamstime.com)

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Profit sharing

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How your small business can make a big difference.

Collette Parker

December 19, 2007