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Answers to Questions in the Business Community

Question from Kansas City Business Journal:

As a philanthropic enterprise, it’s important that the companies that contribute to your organization be prepared. What are the things a business needs to do on its end to facilitate the efficient and uncomplicated donation of goods, services or assets?

Answer from City Union Mission (addressed by Julie Larocco and Dan Doty):

• It’s very important to make sure that the organization is a good "match" with the donor business. In our case, if a company would be "offended" at our Christian values, it might not be a good match. Call and talk to the executive director, CEO, president, etc.

• Don’t assume you know what charities need. For instance, don’t assume all shelters need clothing or diapers. Call for specific information, since most organizations’ needs change constantly. Ask for quantity, type, brand — anything that will bring you that much closer to meeting very specific needs. Funds are always the greatest need — just make sure the funds are accounted for and used as "advertised."

• Stay away from the "poverty mentality" — that the homeless will be happy to get anything since they have nothing. Insure that in-kind gifts are useable and needed. Often we have to use donated money to haul unusable/broken furniture, stained and torn clothing and other "junk" to the dump.

• Schedule a tour of the organization. This will allow you to take back accurate and important information to your constituents regarding true volunteer needs, in-kind needs, services and programs provided, etc. A tour gives you a first-hand answer to the question: "Is this an organization we want to support?"

• Support charities that appear to be doing well, as opposed to those who are struggling. Why? Those that are stable are that way for a reason — they are most likely doing things wisely and using donated funds and services carefully and effectively. Charities that constantly struggle with fiscal stability often do so because of poor management.

• Schedule visits, donation drop offs or pick ups with the organization well in advance.

• Offer your company’s mentoring services to staff and volunteers; or job readiness classes to clients. Your company may be able to share critical knowledge with a charity’s staff that will enable them to do a better job of caring for the community.

Question from Kansas City Business Journal:

What does a good philanthropic enterprise look like? What should employers look for? What are the key things to look for in a reputable and effective charitable organization? In other words, how do you choose the right charity and the right kind of charity?

Answer from City Union Mission (addressed by Julie Larocco and Dan Doty):

Charities should:

• Be "up to code" or trying hard; not hiding from the health department or fire marshal or hoping to get another break from the city.

• Offer tours and opportunities for questions and answers. Ask to talk to "clients" to get an insider’s view. Ask for information on the organization — brochures, web site address, annual report, statistics, client stories, etc.

• Be governed by a board of directors. Avoid charities that depend on a single person for all their decisions.

• Be part of a bigger network. For instance, shelters should be actively networking with other similar charities and exchanging ideas, etc. Those who "hide" or are "Lone Guns" may be wrongly motivated in their work. It’s valid to ask, "Why don’t you cooperate with like-minded agencies?"

• Submit to an annual independent audit and be willing to share that audit with anyone who asks.

• Spends a reasonable amount on fundraising. Good fundraising plans actually help insure that the organization remains stable and conducts meaningful service in the community, getting the best use out of donor dollars. Fundraising experts or trained development officers help promote the organization’s story truthfully and most effectively.

• Show a track record for positive results. Being able to demonstrate success or outcomes is growing in importance. Recognize, however, that not every charity can do this with ease. For example, though City Union Mission tracks many things related to clients who "make it," it’s easy to lose track because former clients may relocate.

• Belong to a financial accountability group such as ECFA (check out www.ECFA.org). This particular "watchdog" kind of organization helps charities such as City Union Mission earn the public’s trust through developing and maintaining standards of accountability that convey God-honoring ethical practices. There are other Internet-based organizations such as GuideStar (GuideStar.org) that can tell you about the fiscal stability and accountability of just about any reputable organization.

• Provide services and programs that are truly necessary to the community and promote positive change and personal responsibility. Avoid helping the set up of a new organization that is duplicating services already adequately provided in the community.

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