Donating to charity, is this a good idea?

[Shaw Stone]

Hi Guys

I'm considering supporting a charity through the company. Either UNICEF or Save the Children. It will be good for PR and on a personal level it is something I would like to do.

I'm thinking of adding £5 to every quote with a commitment that we would then match the customer's donation. It would be optional so people can opt out. The average cost of a granite worktop is about £2500 so I don't think an extra fiver will phase many people. I'm also looking into how gift aid works and how much it is on £10 as this will form the marketing message for the campaign, i.e. Turn a fiver into £12.50 (or whatever it is)?

Id like to hear you're thoughts. Is this a good idea, am I asking too much or too little, will people be put off even though they can opt out and am I heading into a minefield of tax legislation?

Thanks in advance
Robert

 

[My Owl 1]

Hi,
There is a charity body in London called the Institute of Fundraising that would be able to help you with all your question re setting up a charity account. www.institute-of-fundraising.org.uk

Personally I think you wuld have more success with this if you nominated a more personal charity that may even operate locally, or is a NOW issues like Haiti. Especially as the bigger charities are campaigning all year round.

Anyway best of luck with it.

Best Wishes

Avril
I subscribe to the Orang Utan Sanctuary and Hats Foundation

 

We considered this avenue but rejected it on the grounds that it seems a scammy way to get business.?

Instead we support charities with direct links to the charities .

Earl

 

[Brasso]

I personally believe that helping your fellow man is a good thing both spiritually and for your bottom line. First, I would think that if you are a local company then work with a local charity. If you are national or global then UNICEF or Save the children.

Secondly, I only go for the 'Rake Mark Are Proudly Supporting...' on our website and some local press coverage. We have sponsored sports kit and gotten our logo on that and a few column inches. Put up boards in sports clubs and sponsored an event at a local charity. The only return for this is some PR and a good feeling that you helped someone less fortunate, but we are good guys and would support these events anyway.

 

[David Griffiths]

I dislike this approach on several levels, not least that I don't want to be railroaded into supporting any charity that I might not back personally. I will always have such extra charges removed.

The last time that this happened, at a hotel, it was for a local charity - local to the hotel that is, and not something that I would ever consider supporting.

I would have a deep seated suspicion that the company I'm dealing with would claim the full amount of the donations as the results of its own efforts, not merely the 50% or in many cases 0% contribution that it has made. After all, "It's good for PR"

And if an individual does want to support a charity, it's worth much more if it's made directly and Gift Aided. You can't Gift Aid donations made by a company.

Sorry but to me this smacks of forcing your own ideas on other people.

 

[Shaw Stone]

Hi,
There is a charity body in London called the Institute of Fundraising that would be able to help you with all your question re setting up a charity account.

Personally I think you wuld have more success with this if you nominated a more personal charity that may even operate locally, or is a NOW issues like Haiti. Especially as the bigger charities are campaigning all year round.

Anyway best of luck with it.

Best Wishes

Avril
I subscribe to the Orang Utan Sanctuary and Hats Foundation

Thanks Avril for your suggestion. The reason I chose the charities I did is because I do genuinely want to help children around the world and a local charity would not do this.

I support these charities personally and thought this may be a way of helping through my business but judging by the amount of scepticism in subsequent post I don't know if I should bother. Maybe I'm naive but how people can think trying to help starving and under privileged children around the world is somehow scammy or a cheap PR stunt I'm not sure. I think I'll just keep my charitably activities personal were they won't tarnish our very reputable and honest company name!

Robert

Thanks Avril for your suggestion. The reason I chose the charities I did is because I do genuinely want to help children around the world and a local charity would not do this.

I support these charities personally and thought this may be a way of helping through my business but judging by the amount of scepticism in subsequent post I don't know if I should bother. Maybe I'm naive but how people can think trying to help starving and under privileged children around the world is somehow scammy or a cheap PR stunt I'm not sure. I think I'll just keep my charitably activities personal were they won't tarnish our very reputable and honest company name!

Robert

 

[My Owl 1]

Thanks Avril for your suggestion. The reason I chose the charities I did is because I do genuinely want to help children around the world and a local charity would not do this.

I support these charities personally and thought this may be a way of helping through my business but judging by the amount of scepticism in subsequent post I don't know if I should bother. Maybe I'm naive but how people can think trying to help starving and under privileged children around the world is somehow scammy or a cheap PR stunt I'm not sure. I think I'll just keep my charitably activities personal were they won't tarnish our very reputable and honest company name!

Robert

Thanks Avril for your suggestion. The reason I chose the charities I did is because I do genuinely want to help children around the world and a local charity would not do this.

I support these charities personally and thought this may be a way of helping through my business but judging by the amount of scepticism in subsequent post I don't know if I should bother. Maybe I'm naive but how people can think trying to help starving and under privileged children around the world is somehow scammy or a cheap PR stunt I'm not sure. I think I'll just keep my charitably activities personal were they won't tarnish our very reputable and honest company name!

Robert

Hi Robert, I would get Iof F advice then before continuing and also speak to the Fundraising Managers of both charities to make it "kosher".

I understand what others have said about the "credibility" of it and tat it is not just fishing for work, uncharitable but these days inviteable sceptism.

Best of luck.

Avril.
Treasurer of the Institute of Fundraising in Wales.

 

[Shaw Stone]

Thanks Avril, I will look into it further to see the best way forward.

Robert

 

[My Owl 1]

Thanks Avril, I will look into it further to see the best way forward.

Robert

You are very welcome. Do give me a pm or call phone is on my website if I can help further.

best wishes

Avril

 

[Zeno]

I agree with David and will go one further - my opinion is that you should never try to combine a profit making enterprise for your own benefit and any sort of charitable concern. The two are mutually exclusive. (I say this on here a lot).

You have to understand that your customers will not have the same values as you (I personally would not donate monery to either of the ones you mention).

My usual example is - say Mrs Smith who bought one of your kitchens phones up UNICEF to ask if they received your donation. UNICEF would not be able to tell her anyway but this will translate to Mrs Smith as you have kept the money, making you in her eyes, worse than Hitler.

Say you produce the letter from UNICEF thanking you for the donation (s). It will not be specific enough for Mrs Smith to indentify her £5 so she may well still assume you have kept it.

Who is to know if you keep it or not? You are not required to have audited accounts, and HMRC won't care so long as you pay the tax on it. (No suggesting that you would do this by the way, just that you could do).

Any postive PR generated by this will be blown away and then some by these sort of consequences. (We have actually seen examples of this happening on the forum).

 

[Shaw Stone]

best web money for you

I'm sorry but your post makes no sense?????

 

[Doodle-Noodle]

Isn't it a bit sad that cynicism seems to rear it's ugly head at the slightest mention of anyone trying to combine running a business with raising money for charity.
The OP asked "is donating to charity a good idea?" to which of course the answer is yes -- but the real question of course is whether the method of fundraising in this case (adding a fixed donation to the final invoice) would encourage or discourage customers from purchasing from the OP in the first place.
Some people will like the idea, others won't, but it's optional anyway, so probably doesn't really matter one way or the other.
I personally think that all businesses should involve themselves in charitable work where possible, whether they be national or local fundraising projects, and that there are definite benefits to be had from that involvement, particularly with helping to raise your business profile provided you can get some sort of publicity in return for your philanthropy.
Although ours is a completely different initiative, we've noticed quite an upturn in footfall to our shop since we lau ched our charity coffee mornings in aid of local charities - we ask local people to nominate a charity of their choice for a once-a-month coffee morning, the proceeds of which are then donated (100%) to the nominated charity.
We had 96 people attend our event on Friday 5th March - over half of these were people who had never visited our shop before - and we saw a good increase in sales of our goods as a result, with lots of new names added to our craft workshop mailing list. We raised £124.43 for Helping Hands in Tadley - next month we're raising money for Reading Association for the Blind and will hopefully see articles in our local newspaper as a result of these events. I spent just over £40 on cakes, milk, sugar, tea etc - an ad in the paper would have cost me about 5 times that amount and would not have been half as much fun, nor have led to so many new faces in my shop, so everybody has benefitted.

 

[Zeno]

Isn't it a bit sad that cynicism seems to rear it's ugly head at the slightest mention of anyone trying to combine running a business with raising money for charity.

Assuming your points are somewhat aimed at me, answer me this:-

How do you ensure that all your "proceeds" (the defintion of this could vary - do you define it anywhere?) are given to charity? Can you prove it (really actually, prove it)?

Say one of your competitors starts putting it around that you are keeping the charitble contributions. What would you do? I would remind you that your accounts are unaudited.

Even if you do disprove it the "no smoke" attitude will take hold particularly if your business is somewhat successful.

 

[Doodle-Noodle]

Assuming your points are somewhat aimed at me, answer me this:-

How do you ensure that all your "proceeds" (the defintion of this could vary - do you define it anywhere?) are given to charity? Can you prove it (really actually, prove it)?

Say one of your competitors starts putting it around that you are keeping the charitble contributions. What would you do? I would remind you that your accounts are unaudited.

Even if you do disprove it the "no smoke" attitude will take hold particularly if your business is somewhat successful.

I do take your point - and obviously the whole idea could easily be abused so there is an element of trust involved from all parties concerned.
My comment really was that it's sad that we seem to automatically doubt that anyone could truly have honest intentions - I know there are plenty of people out there who wouldn't dream of collecting money under false pretences, but I am aware there are rip-off merchants who wouldn't think twice about it.
In our case, we (so far - but bearing in mind that we have only hosted one event) had two trustees from the charity concerned present on the day throughout the event and simply handed over all the cash collected to them once we'd added up alll the pennies that were put in our donations box. We haven't deducted anything fo expenses, or asked the charity for any contribution to he cost of cakes etc (we did ask if they wanted to make a cake or contribute some biscuits for the event, but they were not able to do this although they did help with washing up and provided some literature about their charity too, which was nice).
Since we are aiming our events at local charities, we are hopeful that we will have someone from the charity we choose present at our events to ensure that people atending or coffee morning can be confident that we are genuine - we don't make a charge for drinks or cakes, we ask people to make whatever donation they feel appropriate if they would like to.
Most people put a £1 in the pot, some a little more, and somebody stuck a handful of Chinese coins in the pot!
Of course, you are right to raise the issue, after all, there will be plenty of people who might doubt even the most genuine of fundraising attempts, and there is a risk that reputation could be seriously damaged in the event that malicious rumour or speculation were to get out.
All that said, I still think that charity and business CAN successfully go together ........... hope I'm not proved wrong!

 

[nextdayprint]

I contribute printing, design and also a limited amount of direct sponsorship to my local Hospice and enjoy the relationship we have with them. I like to help where I can see the effect my money has and keeping it local helps my local economy, of which my business is a part. I don't like the entire mega charity contributions by direct debit, etc... its cold and they end up spending so much on advertising, staff, additional costs, etc.

Charity starts at home, then moves outwards and our country is currently in need of a little help, so keep it local people.

 

[thecyclingartist]

This topic comes up frequently on an art venue where I sell. Many of the makers have '10% to charity' or that sort of policy.

Overall, the community opinion is that it sounds like taking advantage of charity in order to promote their own sales. BUT most people seem okay on the idea of information about charities your support as a business on your website somewhere - that as long as it doesn't seem intertwined with each sale or advertising opportunity it can be more acceptable. It makes your company look community-involved or responsible but without preaching to the customers. While some customers might not like your charities it seems it's rare for them to *not* purchase based just on that, with this sort of approach.

The exception being if you have charities you know are controversial (ie. animals, science research, human rights or political, religious - these topics have extreme support on both sides). If those are you chosen charities you may consider that it could actually lose you customers.

I personally choose charities that some consider 'sensitive' and so I make my charitable donations as an individual from the business profits (ie. my income as a sole trader). This allows me to add gift aid too. If people ask I'm happy to share, but unless the charities are directly related to my product I don't think it's appropriate to include it on my business communications. (Good examples: animal artists who give to animal shelters; Howies, whose entire business ethos hinges on support of environmental causes)

Tina.

 

[Rainbow Chasers']

We always donate to save the children - everyone else pay their fundraisers huge 40k wage packets! S.T.C. paid them nothing - it was voluntary work - so on that basis, that is who we donated to.

 

[nextdayprint]

This topic comes up frequently on an art venue where I sell. Many of the makers have '10% to charity' or that sort of policy.

Overall, the community opinion is that it sounds like taking advantage of charity in order to promote their own sales. BUT most people seem okay on the idea of information about charities your support as a business on your website somewhere - that as long as it doesn't seem intertwined with each sale or advertising opportunity it can be more acceptable. It makes your company look community-involved or responsible but without preaching to the customers. While some customers might not like your charities it seems it's rare for them to *not* purchase based just on that, with this sort of approach.

The exception being if you have charities you know are controversial (ie. animals, science research, human rights or political, religious - these topics have extreme support on both sides). If those are you chosen charities you may consider that it could actually lose you customers.

I personally choose charities that some consider 'sensitive' and so I make my charitable donations as an individual from the business profits (ie. my income as a sole trader). This allows me to add gift aid too. If people ask I'm happy to share, but unless the charities are directly related to my product I don't think it's appropriate to include it on my business communications. (Good examples: animal artists who give to animal shelters; Howies, whose entire business ethos hinges on support of environmental causes)

Tina.

I infrequently have full page adverts in local press etc, and will normally have my ad split between my company and the hospice I support, with mine being about 75-80% of the page. The hospice really appreciates the gesture and it makes little difference to the impact of my advert, but I get to feel all warm and fuzzy inside and as of yet nobody has expressed any feeling that they think what I am doing is anything but honorable... though, now that I think about it, from a marketing perspective, associating my company with death might not be the best idea I ever had...

 

[cinddy]

Yes it is really good way to help others by the profit you gain from your business. see what is the most appropriable organization that is helping poor don't just rely on UNISF.

 

[irishguru]

We considered this avenue but rejected it on the grounds that it seems a scammy way to get business.?

Instead we support charities with direct links to the charities .

Earl

I would prefer this method. To have the links on the about page saying that we support thos cahrities and welcoming others to do also. Another great link to provide is to the worldwide charities search engine.

 

[sarablender]

Salema project consists of carrying out the labour of assisting the sick, disabled, widows and orphans for free, by benevolent giving.

If you don't have the time or the opportunity to do so directly, you still can help these charities do it by just shopping here at normal price (no additional or hidden fees).

This is an online shopping site which supports charity projects in the south of Madagascar.
ww w.charityonlineshopping .com
Here you can find cheap deals on online shopping to help charities in Madagascar; just by doing online shopping. It's so simple.

A wide range of products is provided so that you can find here almost everything you need daily: clothes, shoes, beauties, music, grocery...
These stuffs are cheap but the company owner is kind enough to give 5 percent of the money you pay to Salema.

 

[WJP]

Just as a side note, as far as I'm aware Gift Aid is still 28p in the pound (so in your case would be another £2.80).

 

[APC RoadLink]

I see that this thread has gathered some ground, I have not read all the comments but if you want my view I hate this kind of marketing. Charity is for charity not marketing as a business and personaly I give to charity quietly without using it as a marketing ploy to gain Kudos. If you want to give to charity give don,t boast.

 

[owas]

With regards to my new site, the whole ethos is that we want to raise money for a children's charity with each sale. I will be selling children's toys and as I assume my market would be parents, my assumption was that they would support the site.
Although after reading this post I don't want to appear as if I am doing this just for PR.
The website is still having some finishing touches (all done by me) but please feel free to have a look and let me know what you think, and is the message clear I would really appreciate your feedback. Its not my full time work, but I do work in the online nursery industry for 4 years and have a good understanding (I hope) and of course as a parent myself.
Owain

www.flubbertoys.co.uk

 

[MASSEY]

www.flubbertoys.co.uk

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You've got a bit of html not opend properly ,

 

[owas]

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You've got a bit of html not opend properly ,

yeah ta, I have been getting headaches trying to find out what this is, and suggestions? :|

 

[cinddy]

If your business is in good run and you are earning a lot from it then their is no harm to spend some of your money in welfare means...

 

[Toonpages_co_uk]

I think any money raised for charity is a positive. It is better to give out than receive.

Any positive contribution benefits society as a whole

Keep up the good work and don't be deterred by the naysayyers

 

[Billmccallum]

We always donate to save the children - everyone else pay their fundraisers huge 40k wage packets! S.T.C. paid them nothing - it was voluntary work - so on that basis, that is who we donated to.

Slightly incorrect information... Save the Children spent £20 million on fundrasing last year, on average they spend 15% of all donations on the activity.

 

[Zeno]

I will just re-iterate that no one was suggesting that people not donate to charity. The advice was (from me anyway) that you should do so personally and not involve your business.

 

[BrightIdeasTrust]

ultimately, while it may seem a cruel way to increase business and improve the public image, the charity is still benefiting. Motives aren't that important when helping a charity, as long as the charity is helped.

 

[Zeno]

Motives aren't that important when helping a charity, as long as the charity is helped.

The end justifies the means?

 

[Dawg]

The end justifies the means?

Exactly. Give to charity, establish your credentials and use the influence to stop decent wages being paid in the third world. As long as the charity benefits....

With slightly less irony, I think you are right Zeno. Open, blatant giving might be absolutely fine and dandy, but the number of times it is used as a marketing tool, (witness the greenwashing tsunami of businesses supporting tree planting for instance), and as a profile builder it's understandable that people are cynical.
Give, and give generously. But don't make a business song and dance about it.

 

[Sigarfo]

I think giving to a charity is a good thing......

 

[WJP]

Sigarfo, that's not the point being discussed.

 

[Sigarfo]

Sigarfo, that's not the point being discussed.

There are 3 parts to the OPs thread and the first is: is it a good idea....
sorry didnt realise that I couldnt answer if I wasnt answering it all.....

 

[stavenmorris]

I absolutely think that charity donations are a great idea not only are you helping out the local community but you are getting your name out there as well. This can open doors for you into new avenues you never considered before.

 

[4success]

Hi Robert, It is a good idea to give to charity if it is going to be part of your business and not just a cheap pr stunt eg £5 on a £2500 sale. The most successful businesses give 5% to 10% of gross profit to good causes that are either relevant to the business eg improving the environment & living standards of people harmed by the mining of granite or are nominated by the customer.
Another way you can boost your business by giving to charities is to allow your staff to have at least 2 days of paid leave per year to do voluntary work as this will reduce staff turnover & sickness as well as increasing kudos.
When businesses think their role is to extract profit regardless of cost instead of exchanging value for mutual benefit they create the problems we have suffered from for the past 200+ years, like BP's support for the occupation & plunder of West Papua & using substandard systems like ships under the flag of convenience just to get a temporary gain because the business are not held accountable for the increased risk that they pass on to insurance companies.
Now the world is changing, because of the internet & social media so businesses & governments can no longer hide the harm they do so only businesses that really treat their customers & workers as the the business partners they truly are will thrive.

 

[WJP]

I'd be cautious about implying causation there though 4success.

 

[Matt G]

If the payments are used to support and help the people in help, this are always good. I think that humanitary events are always good, this way we can help eachother and more we can create a better world for those who don't have a shelter above their head.