11.30.06 - Column: Small Biz Mix Charity, Marketing

NEW YORK (AP) -- It might seem obvious that charitable work or donations to a cause are good things for small companies to do - they need to show their communities they care about their neighbors. So, what about the ones who purposefully pair their altruism with hopes of generating new business - does that negate the good will?

Business owners who combine good deeds and good business don't think so.

Rob Basso and his company are deeply involved in charitable work. He has taken part in boxing tournaments and given cash donations to many causes. And he helped found a network of business people who raise money for charity. "We've made it part of our marketing plan," said Basso, president of Advantage Payroll Services in Hicksville, N.Y. "It raises awareness for your company, that you are a good charitable player." These activities have helped gain visibility and good will for Advantage in several ways. For example, some of Basso's employees volunteer at events wearing Advantage T-shirts; his company is instantly identified as one that does good for others.

Perhaps more important is his own participation in fundraising, which provides networking opportunities with other business people who are potential customers or who can refer others.

The payoff: Basso estimates that 15 percent or more of his company's revenue can be attributed to charitable activities.

Companies with products to sell can get free advertising by donating merchandise. B-tween Productions, which markets Beacon Street Girls books, duffel bags, pillows and other items, donates merchandise for silent auctions. That raises money for charities, but it also helps create a new audience for the books, which aim at raising girls' self-esteem.

"We're doing well by doing good," said Bobbie Carlton, the Lexington, Mass., company's marketing director.

She said of parents at the auctions, "once they find out about the books and find out about our mission, they're inclined to go out and buy books for the kids." And since the books often get new fans via word of mouth, any exposure such as this is certain to lead to more sales in the future.

Cbeyond, an Atlanta-based voice over Internet provider, engages in charitable activities and also encourages employees to do the same, giving them $250 each a year to donate to a charity, and also giving them eight hours off a year to devote to charitable activities. Cbeyond also works with Hands On Network, an organization that coordinates volunteers in a variety of areas.

"It helps our business. ... When you're involved in the community, it expands your world and fills your soul," CEO Jim Geiger said of charitable work. "We have better, more vibrant people in our company."

Geiger also says his company has gotten new business as a result of charitable activities. He noted that 30 percent of Cbeyond's new business each month comes from referrals, and its charitable endeavors contribute to that gain.

"We track it like a hawk," Geiger said. "It's something we're committed to, we spend money on." But he also says: "We expected to have a benefit. It all sounds calculating, but it is a business we run."

Many small business owners are so engrossed in the day-to-day operations of a business that charitable giving ends up being a check to an organization or cause. Basso encouraged owners to incorporate charitable work into their companies' operations.

"What a lot of entrepreneurs do, they don't even think out a plan for that part of the business," he said.

A company's charitable work can have a link to its business - B-tween Productions, for example, donates books to libraries. But even a cause chosen for an owner's personal reasons can still benefit the business. And even when an owner doesn't care about helping his or her company through charity, it still can have an impact.

Les Kollegian, owner of Jacob Tyler Creative Group, a San Diego-based marketing firm, focuses his company's charitable work on groups aimed at fighting cancer; his family has a history of the disease. Jacob Tyler has, among other things, raised money for a three-day, 60-mile walk sponsored by the Susan G. Komen Foundation for breast cancer research.

As part of that effort, Kollegian e-mailed clients and asked them to contribute. And many of them did, likely appreciating Jacob Tyler for giving them the opportunity to take part in some way.

Kollegian says, however, that's not his main motivation.

"I'm sure that it benefits our business in an ancillary way," Kollegian said, but added, "that's not our main purpose."

To interview Les Kollegian, contact: Denise@JacobTyler.com
Phone: (630) 845-4694

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