The NonProfit Times - June 15, 2008 - (Page 11)

GRANTS PATTIE JOHNSON Approaching Businesses Getting corporate support for your nonprofit G rantseekers need to understand both the motivations behind corporate giving and the options for partnering with corporations to be successful at attracting their support. Unlike foundations, companies are in business to make money, not give it away. The company’s priorities are its customers, shareholders, employees, and bottom line. So why do companies give money, time, and resources to nonprofit organizations? Most people think companies give to take advantage of the tax break for charitable donations (10 percent of pre-tax profits are deductible). But a tax deduction is not the primary motivating factor behind most corporate philanthropy. Giving can advance a company’s business objectives by increasing its visibility in the community with positive attention. Studies have shown that all else being equal, buyers will choose a product or service from a company that is viewed as socially responsible. Therefore, some businesses want the “reflected glory” of associating their names with nonprofits. Companies also Businesses want the “reflected glory” of associating their names with nonprofits. disclose their assets and grants annually on Internal Revenue Service (IRS) Form 990-PF. Because the 990-PF is public information, researching a corporate foundation’s giving is easier than researching direct corporate giving programs, which are internal to the company, tied directly to company profits, and have no public disclosure requirement. IN-KIND SUPPORT In-kind support might consist of donated products, equipment, services, or space. Since in-kind support could be easier and less expensive for a company to provide than a monetary grant,seeking it might be your first step in building a relationship with a particular business, which may lead ultimately to financial support as well. sponsored foundations, direct giving programs, or both. Company-sponsored foundations are separate legal entities from the businesses that establish them. The foundations might have an endowment from which to draw or may be dependent on annual gifts from the company. Most corporate foundations are set up as private foundations and as such must EMPLOYEE INVOLVEMENT According to Matching Gift Details, more than 7,000 parent companies, divisions, and subsidiaries in the U.S. currently match their employees’ gifts to nonprofits. Some companies have formal employee volunteer programs, for example, providing tutors for a local school or executive Grants, page 17 give to be good corporate citizens by returning a portion of their profits to the communities in which they do business and where their employees live and work. Here are a few options to pitch these potential corporate sponsors. GRANTS Corporations provide direct cash grants to nonprofits through company- JUNE 15, 2008 THE NONPROFIT TIMES www.nptimes.com 11 http://www.cmarket.com/npt http://www.boxwoodtech.com http://www.boxwoodtech.com http://www.cmarket.com/npt http://www.nptimes.com

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The NonProfit Times - June 15, 2008 Fundraising Fizzles For Myanmar And China Complaints Filed Against Grant Institute Nonprofit Styles Aren't Out Of Fashion Contents Lights. Camera. Action. Calendar New Boss At Gates Approaching Businesses Big Isn't Always Better Obama And You 'Always Do Right' New Boss At NCNA Three Networks Will Air $100 Million Cancer Fundraiser NPT Jobs Resource Directory

The NonProfit Times - June 15, 2008

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