Giving Money to Charity: It's All About ROI

I've run into a few people lately who have retail stores and are giving money to charity. Good for you. Bad for your business.

If you're running a lean, mean store with low profits, why are you giving money away instead of putting it back into your store or into your pocket?

Don't get me wrong. I'm a big believer in the importance of charity, of giving back, of helping those less fortunate. But giving is bad for business unless you've set forth goals for why and how you're giving, and what you expect to receive from these endeavors.

As the saying goes, nothing in life is free. Most philanthropic organizations recognize that giving today is often a business decision, and there's often a quid pro quo associated with it.

So how do you get the most out of your partnership with a charity?

1. Set goals. Why are you partnering? To feel better about yourself? To get involved with your community? To drive more business? To get a tax write-off? It's important you set forth the goals so you're really clear about why you're doing this. You neet a way to measure your success, as well. Make sure both your goals and your standards for measuring success are clearly laid out in advance.

2. Make it relevant and leave personal feelings out it. I've worked for companies where CEOs or principals used company funds for their personal favorite charities. There's nothing wrong with that. But as a small business, every dollar matters. And if you're going to donate money, make sure it's relevant to your business.

When I worked for a beauty retailer, we worked with Dress for Success and Working Wardrobes -- two charities that helped women get back on their feet and into the working world by helping dress them and give them the skills they needed. That was a perfect tie-in for a women-oriented retailer, and our customers could identify with the partnership.

3. You don't ask, you don't get. As part of a partnership, make sure you ask for the charity to support your cause, too. Host an event where you donate a portion of the proceeds back to the charity. As part of doing so, ensure the charity promotes the event to its donor, employee and volunteer base through all of its marketing channels. You can even ask them to support the event in advance, create signs for your store, and develop the artwork for you.

4. Detail the results, then try, try again. This charity business is a tricky one. And you may have to bake the cake a few times before you perfect the recipe. Just because you try something once and it doesn't work doesn't mean you stop trying. There are a myriad of reasons that a charity tie-in may not have worked. Make sure you have a post-partnership recap meeting where you discuss the results -- and if they weren't to your liking, to find ways to improve the partnership moving forward. If things went well, then talk about how to expand the relationship.

Charity tie-ins can be a boon for your small business. All it takes is a little planning and execution to make the partnership thrive. Just make sure you're clear about why your jumping into it.

How are you using charity partnerships to drive your business? Sound off below.

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