Small Business Donation Requests

[GFC25th]

Fellow small business owners - ‘tis the season!!
How do you handle all of the donation requests you receive from community members?!? We get soooo mannnny. Especially this time of year….  ✨We are all about giving back to our community but I need a better system!✨

🟢Do you follow a quarterly giving budget?

🟢Have donation request forms to fill out? 
<< I saw someone on Instagram suggest adding a question “when was the last time you made a purchase with us?” to a donation request. LOVED that. 
🟢Are there specific groups/benefits that you will or won’t donate to?

I would love to hear how others have this set up!

[TheRealChipA]

Hey there @GFC25th. These are definitely questions that all business owners need to think about.  We are entering our thirteenth year in business and have some informal guidelines.

• No budget here, really.  If we want to give and are able to give, we give.  If not, we don't.
• Also, we have no donation forms, nor do we have "prerequisites."  For us, it is less about whether or not someone patronizes our business and more about whether or not giving to them benefits our image and standing in the community. 
• We do not donate to anything that is political, no matter what politics they are.  That being said, we have in the past donated space and discounts to groups that were registering folks to vote, as long as they were non-partisan groups.
• Our biggest donation every year is to sponsor the local LGBTQ film festival.  It's an event near and dear to our hearts.
• Otherwise we don't really have rules or litmus tests.  If we have any doubts about what the donation might be used for, we politely decline.  If it is a cause/group we support, we do our best to donate something.

We prefer to donate gift cards in most cases.  Most of what we are asked to donate to are raffles, or thank-you gifts for group volunteers, etc.  In those cases, a $50 gift certificate only costs us the cost of whatever is purchased, and we still get the entire face value of the gift certificate as a deduction.  Our film festival donation is an exception as that is a cash donation.  We try to limit ourselves to one other full cash donation a year, if at all possible.

[CurlyDoodle]

Great question! We get lots of requests in the mail, or from folks dropping by asking about their particular org. We already provide free grooming for shelter dogs through a friends group. During the holidays we have a desktop tree and donation box for this group so customers may donate if they wish. I don't pressure them. 

I give gift cards for raffles and bingo. I have yet to have someone cash one in. 

[sacredheart926]

Love this post! We keep track and my accountant lets me know when we are at our limit for the year! It's hard to turn someone asking for a donation down. I do love the "When was the last time you made a purchase with us?"! 

[JUYBoutique20]

We don't really have a budget when it comes to donations.  We always try to donate to organizations that align with our values. 

[JoeTend]

While we don't necessarily create a giving budget, we do have parameters for which we will give. Since we're a plant shop in a neighborhood plagued with decades of environmental issues, we reserve any giving to organizations or causes that support greening up our neighborhood, local parks, environmental/gardening initiatives in local schools, etc. We are also a proudly LGBTQIA+ owned business, so we do a big Pride initiative to raise money for an NYC-wide non-profit that supports the cause. When we say "no" we phrase it as such "Your cause/event/charity sounds fantastic - thank you for doing what you do! We reserve our giving for (above list), so we won't be able to donate. We are cheering for you from the sidelines though!" I find that people almost always reply back to say thank you for explaining and to thank us for giving to the causes that we do!

That being said, because I don't invest much into marketing, I often don't mind donating a gift card if it looks like an event that will get a lot of views from my customer base (example, our local library had a book sale and we donated a gift card to the raffle they were holding the same day because I know my customers use that branch.)

As for the budget piece, I definitely go with my gut. I also find that simply saying "we've already committed our given buget for the (month/quarter/year)" lets folks down easy.

We don't use a form. That simply comes from the fact that when we've tried a form in the past, folks still just email or visit in person. In the time it takes to direct them to the form, we could just read the request and respond. 

[JTPets]

I ignore most, as they come in the form of email spam. However I try to support a few local organizations, there is a youth ministry / safe space I took more than few meals from during my troubled youth, and the local Cancer Assistance Program. Both get stuff like gift cards, samples and coupons anytime they ask.

[SVLFever]

We do NOT have a donation budget for donation requests, however we have some pretty simple guidelines;

• We do NOT make any cash donations.   On average in a given year, we will receive about 200 donation requests.   To donate money to all of them would put me out of business.
• In most cases, we will donate a service, such as free rounds of laser tag, mini-golf or bowling.
• In some cases, depending on the mutual support of the organization, we will donate bowling parties with food/drink included, or in some cases, gift cards.   For example, a fund raiser for Special Olympics will get higher support, as the Special Olympics will host paid events here at my facility.  In other words, I will support an organization that also tries to support me.
• If a regular customer (league bowler) requests a donation, I am more apt to donate something of more value.
• We will in rare occasion donate an expensive product, such as a bowling ball, for a raffle to help support youth bowling.
• I will not donate to a political cause, regardless if I agree with it or not.   That is asking for trouble.
• In some situations I will provide discounted or even free events for groups that support children who can't afford the opportunity to have fun.

I feel what being an integral part of the community means giving back when the opportunity allows, but not at the cost of the overal success of the business.  I can't give eventhing away and stay in business.

[bonny]

I have certain products where it's clear that all proceeds from their sale are donated to a specific cause.  They were thoughtfully considered and chosen for specific reasons.  I don't accept any other unsolicited requests.  

Bonny Wagoner - Artist/Illustrator