Giving back to the community can be a gesture of goodwill or a preplanned business deduction. Either way, it's a good idea for retail businesses to have a charitable giving policy in place. Don't wait to be asked. The time to plan for the store's charitable giving policy is while writing the business plan.
Before establishing a giving policy, consider the following:
- Determine amount of annual giving. Whether it's 1% of total revenue or 5% of net profits, having a fixed dollar amount will help in allocating gifts throughout the year.
- Choose which organizations to support. Many small retail businesses choose one or two major organizations to give to, as well as a few other local events and small groups within their communities.
- Calculate the size of gifts to each charitable cause. If possible, plan the type of donation and dollar amount of each gift when planning the yearly budget. This information can be worked into the retailer's business plan.
- Let staff aid in choosing organizations. Having a say in which group receives the store's support can help foster a charitable working environment.
- Require advice notice, in writing, for any group soliciting donations. If you've already met your giving plan for this year, you can let the organization know this. Offer to work them into the list for next year, if possible. Requests on letterhead also allows retailers to do a little research before committing to a particular charitable group.
- Put it in writing. Educate staff members of policy and place Giving Plan in the store's policy manual.
- Learn to say no. It's good to be flexible but when it comes to giving a portion of the revenue, businesses sometimes need to say no. Stick to your charitable giving policy and you can feel good about giving.
