Any business is a key part of the community and region they serve and are located in. The good of the community is also good for the business. As a community member, your business more than likely gets numerous requests to donate goods, services, or money and to sponsorship events, ball teams, race cars, 5K runs, hunting nonprofits or other causes. Requests for a donation cover a wide range of community events and public causes. Do you have a well-planned response for requests for donations and sponsorships? Do you have a plan to guide you in who gets what, and how much?
The sad news is that in some regions and communities, businesses are overrun with such donation requests. If you meet all of those requests with a donation, whether it be goods, services or dollars, you would soon be out of business — with your dollars donated away. Donation requests can drain a business. Make plans and stick to them before requests become major drains.
Make Plans, Guidelines and a Budget
Nearly all requests that come into your hunting retail business should be viewed as an opportunity. Look at the request as a cost, and in return you should get something of value for the cash, services or good rendered. At a minimum would be your business’ name and contact information in a brochure handed to all attendees at an event, or included in advertising and sponsorship lists and signs. Be certain you ask for and see examples of what will be provided in exchange for the amount of goods and donations given. When possible, get this information in writing. Promises are sometimes hollow words just to get something.
Next, plan ahead for donation requests. Establish guidelines about who can authorize or provide donations in your business, and let any employees know the guidelines — and that they are expected to follow them. Create an annual budget for meeting donation requests. You can base this on past history and what you expect in the future. Look at donations as advertising and goodwill, but remember there is an associated cost.
A pitfall for some businesses, especially in small towns where everyone knows everyone, is that too many employees or persons within the company start giving away donations. Yeah, it sounds like a good cause. Then, down the road, it is discovered that several causes received goods or dollars, and in some cases two or more representatives from the same cause came calling and received donations. This type of random and uncontrolled donating can wreck any budget and happens more often than you realize.
What Will the Donation Do?
A key step to good-decision-donation success is also to ask for and receive proof of what your money/goods/services will accomplish. New uniforms for a Little League team or items for a fundraising banquet by a nonprofit conservation organization’s local chapter should all help you earn at least something for your time and associated costs of the donation. Learn the details so you can judge output, recognition and costs against promised results.
Donations can also be seen as community goodwill and help you earn regional or local recognition, but unfortunately, some requestors are not good at fulfilling their promises. Be prepared to ask for extras before donating, because all things are negotiable. When increasing your annual donation budget or making a substantial gift, let the requestor know you possibly want top billing in any handouts, table placards or other onsite signage. When possible, ask to also do business for the cause, such as handling the event’s firearms transfers or possibly providing T-shirts for the youth league team. This can bring customers to your shop — and put dollars in your pocket.
Be specific if you want a banner on the wall during an event or the opportunity to speak during the event about your donation, or if you want a supper table so you can come and bring some friends. Just handing over cash is not the best strategy in donating — expect to receive something in return. All things are negotiable, so ask for an extra that makes you get noticed before or during any community event. Don’t accept the standard placement or comment that there are guidelines and donation levels.
Follow your budget and guidelines you have created, and let any employees know the rules on donations.
Donor Beware
An issue around donations must be addressed here: scammers. You can often weed out the scammers because they call every month with a new cause, such as supporting local law enforcement, then a fire department, then a school resource officer whose home burned, and on and on. Before you donate to any cause, discover the details and take the time to make calls and get verification. If the requestor says the donation helps a fire department, find out which fire department and make calls to see if the request is valid before you donate. The sad news is there are folks out there who make a living scamming in the name of community donations. If the requestor offers to trade something of value for your donation, it’s a red flag. Also, a good strategy is to ask for an address and search the location online while the requestor continues their pitch. If the address is a home, that’s another red flag. Valid fire and LE departments generally use their headquarters as the location where donations can be sent.
A good rule is to follow up any donation request over the phone with a request for something mailed to you in writing. Again, check addresses and names and make calls to see if requests are valid before sending anything. Scammers can use photocopiers and printers, and those who fail to validate requests can be taken for a costly ride. Dig into the details before you drop any donation.
Take a Number
While it does take time to speak with requestors, you should always pause about donations to a new source. Never say “no” but do take requests in writing and look closely at the details without the pressure of someone standing before you with their hand out. At a minimum, the requestor should be able to provide a request letter with the name and contact information from the president or committee head of the group requesting a donation. Also, ask for past examples of donations, any dates and timelines, and possible buy-in levels. The requestor should be able to provide attendance numbers from last year if a fundraising banquet or ball game is the focus point and may be able to provide those same numbers from the past five years. Things change, and fundraising banquets from charities and nonprofits have been known to cease altogether or begin shrinking significantly due to numerous reasons.
When considering the options, think back to whether your customers have ever mentioned the event or charity. Do your customers attend this event or support this group, and have you ever heard of the group, event or cause? All questions deserve answers before you donate.
In the donation category for something other than dollars or services, think about your donation. While it is tempting to clean out your business’ damaged goods bin, remember if this donation has your company’s name on it, the donation indicates to your community how you conduct business. The dark side of donations is to be prepared, because once you donate to area nonprofits and groups, they sometimes share lists, or the attendees at one banquet take notes of who donated because they are having or working for a banquet to be held in the coming months. One donation leads to a barrage of requests, and other solicitors will be on your doorstep asking for more donations. It’s a vicious cycle in some cities, unfortunately.
Measuring Results
A great rule of thumb is to always ask for results from your donation. At a minimum, the requestor should be certain you get a brochure from any event or program that shows your business name in print and in the category you donated at if there are levels. Many great causes return to thank you and give a framed plaque for your business wall or recognition as an annual member or donor. Nonprofit groups in the hunting and conservation communities are often professional in returning with recognition and thanks.
If you donate and never hear anything after the event or date, make a note. The requestor’s failure to follow up, especially when promised, should be a red flag that you may not be getting top bang for your donation dollars. If your donation requires the winner or buyer/bidder to come to your business for a service or to transfer an item, listen carefully to any comments about the event or the organization you supported with your donation. Negative comments such as too many intoxicated patrons or a fight should also be a red flag to be considered in future requests. Unfortunately, some banquets let the liquor flow to help guests loosen their wallets, and situations have occurred. Donor beware.
Finally, donations can work in your favor and earn a lot of goodwill and build your brand or business recognition. Just be certain to consider requests carefully and donate wisely.
