How businesses of all sizes make a difference in the nonprofit world.
Rob and Trish Martin, owners of Tamalpais Paint and Color, were named business citizens of the year at Bank of Marin’s 2007 “Spirit of Marin” awards. “We were surprised to learn of our award,” says Trish, who adds she and her husband didn’t think they were doing anything different than other business owners. With three children and the demands of running a bustling business, she says, they “can’t volunteer,” so they make donations and encourage employee volunteerism instead.
“People started asking for donations right away,” she says of the opening of their stores in Mill Valley and Corte Madera 14 years ago. They’ve never said no to loyal customers who often ask for donations to support local schools. “The community helps our stores thrive,” she says. Martin lost her best friend to breast cancer 10 years ago, and now donates to nonprofits that support breast cancer awareness as well as the American Cancer Society. This husband and wife team feel it’s only right to give back.
The way the Martins support nonprofits is typical of many small- to medium-sized business owners, who know giving back is a way to show customers appreciation for their patronage. Others see making charitable contributions as a way to support causes they feel passionate about. Fleurville’s Steve Granville says, “Good karma is good business.” Granville, originally from Maryland, and his wife, Catherine, a Texas native, co-own the company that provides “essential designs for modern parenting.” They moved to the North Bay because they liked the “morals and environmental awareness” here. Their company started with the couple selling prototype diaper bags that were durable, attractive and eco-friendly out of their Fairfax garage. Their business is now run out of 10,000 square feet in San Rafael and boasts some high-profile fans, including Julia Roberts, Halle Berry, Uma Thurman and Mary-Louise Parker.
The Granvilles donate to charities based on their personal interests, including the environment (for example, a percentage of proceeds from designated bags goes to the Eco Mom Alliance, an organization dedicated to environmentally focused community activism). They also tie their giving to their product by supporting programs for moms. Fleurville sponsors the Canal Alliance’s Compañeras program, which is located in San Rafael’s Canal community but serves all of Marin County and beyond. Compañeras pairs pregnant, Spanish-speaking women with a trained professional who provides advocacy, support and prenatal education throughout the pregnancy.
Granville says he and his wife chose this program because the service was unique—and needed. “A big population of women are hardworking with low incomes,” he says. “We want to support moms who are going through a rough transition.” The Granvilles provide cash support for the program, but they also provide each new mom with a PVC-free diaper bag, something the struggling mothers might never afford on their own. The Granvilles believe, “As our neighbors’ lives are better, ours are better, too.”
How it works
Referred to as the “third sector” in business circles, nonprofits are neither private nor public enterprises. They’re often started in response to a community need that’s not being met. One such organization was started in 1881 by Clara Barton, who saw a need to provide volunteer, short-term, emergency relief during natural disasters. Today, the American Red Cross has one of the largest volunteer cores of any nonprofit group.
Nonprofits come in all shapes and sizes, but they’re all organized for purposes other than generating profit, and no part of any nonprofit organization’s income is distributed to its members, directors or officers. Nonprofits can take the form of a corporation, an individual enterprise (for example, individual charitable contributions), an unincorporated association partnership, a foundation (distinguished by a founder’s endowment, it takes the form of a trusteeship) or condominium (joint ownership of common areas by owners of adjacent individual units incorporated under state condominium acts).
Nonprofits must be designated as such when they’re created, and they may only pursue purposes permitted by law. They’re organized under state law, but for federal tax purposes, an organization is exempt from taxation as a 501 if it’s organized and operated exclusively for religious, charitable, scientific, public safety, literary, educational, prevention of cruelty to children or animals, and/or to develop national or international sports purposes. All nonprofits are governed by a board of directors or trustees (there’s no real difference), which is a group of volunteers that’s legally responsible for making sure the organization remains true to its mission, safeguarding its assets and operating in the public interest.
Most nonprofits rely on external funding, including government funds, grants from charitable foundations and direct donations from individuals, groups and businesses. They often rely heavily on volunteers—especially the smaller, grassroots organizations. Patrick Mutt and Ramon Espinoza are owners of Cokas-Diko home furnishings design stores in Santa Rosa and Windsor. (A third store, located in San Diego, is owned by Mutt’s sister and brother-in-law.) Even though Patrick grew up in the United States and Ramon spent his childhood in Mexico, both men grew up in families that promoted volunteerism and helping those in need. But like the Martins, time has become a short commodity, so they’ve found other ways to help their communities.
Mutt and Espinoza have bought large quantities of discontinued sheets and blankets from distributors at greatly reduced prices and donated them to local shelters and to Face to Face’s Santa Rosa thrift store. (Face to Face, which serves people in Sonoma County living with HIV/AIDS, has faced a number of federal funding cuts in recent years. The agency has been creative in its fund-raising efforts—the thrift store is one example—yet it must still rely on the generosity of businesses to keep its services available.)
Many nonprofits have fund-raising events that feature auction items, and Cokas-Diko has generously donated items for these events as well. Mutt and Espinoza like to support nonprofits that benefit everyone in the community; educational institutions, arts organizations and groups helping the underprivileged have all received assistance from them. “Sonoma County has been good to us. The more we make, the more we give back,” says Mutt. When the store first opened, the partners didn’t always keep track of their donations. Their accountant soon told them they needed to keep track of all their contributions.
Steve Pletkin, president of Pletkin & Associates, a tax and bookkeeping firm in Santa Rosa, says, “I encourage all our clients to give to charity. There can be tax advantages for many of our corporate clients in donating monetarily, but I make it clear that they shouldn’t be donating just for a tax deduction. They should be doing it because it’s a great gesture to give to someone in need.” Pletkin mentions business owners should always consult with their tax adviser prior to making a gift to see if the donation is tax-deductible.
Big business
Larger businesses have additional options when it comes to philanthropic ventures. Larry Brackett is president and CEO of Frank Howard Allen Realtors, which has 60 employees and more than 500 sales agents. FHA encourages workers to give both time and money to help their communities. Brackett believes “our most precious resource is time,” and each of his 60 employees is paid to spend half a day each month volunteering for an organization of their choice.
Each office also selects a nonprofit organization that’s linked to housing (for example, a shelter for battered women or an organization that helps senior citizens live in their own homes with support services), and supports it through a matching grants program. Employees then contribute their own money to the organization, and the company will match those contributions dollar for dollar. Last year, local nonprofits received more than $60,000 through this fund.
In 2007, Frank Howard Allen Realtors was also able to offer approximately $200,000 in financial assistance to about 75 organizations in Marin and Sonoma counties with the help of the Marin Community Foundation and the Community Foundation of Sonoma. Both nonprofit foundations raise funds that are distributed to various local organizations. Brackett has established “donor advised” funds at both foundations, meaning the foundations act as a “screener” for his business donations by identifying charitable projects and programs that match FHA’s interests. Community foundations also offer opportunities for donors to collaborate with others who may share their charitable interests. Brackett says community foundations are an “integral part of refined philanthropic giving.”
Targeted funds
Larger corporations often create their own foundation (with its own governing body). Some individuals also start their own foundations to support personal areas of interest. The largest foundation in the United States is the Bill and Melinda Gates Foundation with assets totaling $60 billion (started in 2000 with $27 billion donated by the Gates and $30 billion donated by Warren Buffett in 2006). Business foundations usually have funding priorities that tie into primary focus areas of the business.
Medtronic, an international leader in the world of medical technology, says in its mission that it’s a company that “contributes to human welfare by application of biomedical engineering in the research, design, manufacture and sale of instruments or appliances that alleviate pain, restore health, and extend life.” Kim McEachron, vice president of human resources in the vascular business, works out of the Santa Rosa office. She says part of Medtronic’s mission is also, “To be a good citizen in the communities where we do business.” Each Medtronic location has a community link committee. These committees are a part of the company-wide Medtronic Foundation, but each helps to decide which local organizations will get funding. The foundation focuses on three priority areas: improving health; education (including science, technology and preparing future generations for engineering by building their innovation skills); and human and community services.
The Santa Rosa arm of the foundation consists of 10 local employees who meet monthly to review applications submitted by local nonprofits. According to Aine Smalley, director of research and development for the vascular business and also chair of the local community link committee, in 2006, 17 groups received funds ranging from $5,000 to $20,000 for a total of about $100,000. “We usually fund about half of the grant applications we receive,” she says. And the number of applications received each year keeps increasing. Grantees must prove they’re meeting a need that’s not being met elsewhere, have a proven track record and be able to show specifically how the money will be used; they’re also required to turn in a report at the end of the year designating the project’s success. Some projects are funded for up to three years, others for just one.
The Lomi Psychotherapy Clinic in Santa Rosa receives Medtronic funding for its Legacy Therapy Program, which provides free therapy to people in crisis who have no resources to pay. Thomas Pope, clinical director and co-founder of Lomi, says, “Through the generosity of the Medtronic Foundation and many other businesses, we’re able to provide low- and no-cost mental health services to many people who otherwise wouldn’t be able to receive the care they need.” He continues, “Medtronic’s major funding of our Legacy program helps us keep our community healthy and safe.”
In addition to its foundation funding, Medtronic, like other civic-minded companies, gives back to its neighbors in other ways. The company’s Time and Talent Program gives $500 to a qualifying nonprofit or school that any employee volunteers at for 25 hours or more. It also offers up to five days of paid leave (and allows some personal time to be used if more time is needed) if an employee wants to respond to a disaster, as some chose to do following Hurricane Katrina. Medtronic also has a Mission in Motion Program that helps employees facilitate volunteer and board opportunities, and two corporate sponsorship areas, the American Heart Association (supporting research and preventive education) and the United Way.
Bucks from Starbucks
From a single store in Seattle, Starbucks has grown into a large corporate body with a presence in almost every neighborhood. But the company recognizes its success is based on the individuals who frequent its coffee shops. Like other large corporations, Starbucks has established a foundation that generously donates to many nonprofits, but it also has a unique volunteer program that involves both employees and customers.
The Make Your Mark Program was started in 2000, and it’s been a success ever since. For each hour an individual works at a nonprofit event, Starbucks will contribute $10 (for up to $1,000 per event). Store managers, with employee input, decide which local events to sponsor in this way. Last year, a group of employees and customers worked at a fund-raising concert for Napa’s Connolly Ranch, which teaches children firsthand about farming and outdoor living. Everyone had a great time and Connolly Ranch received $1,000. Gary Lustig, a North Bay district manager, says, “We just want to be part of the community. Doing events always makes everyone feel so good. Participation enriches the lives of our employees and helps us tie into our communities and be better neighbors.”
Like all nonprofit hospitals in California, Kaiser Permanente, one of the largest providers of health care services in Northern California, is mandated by the state to perform a community health care needs assessment every three years; this assessment is conducted jointly with the Sonoma County Department of Public Health, Sutter Hospital and Santa Rosa Memorial Hospital. What’s determined in the study often sets the framework for the funding that’s dispersed in subsequent years through the Kaiser Permanente Community Benefit Program. The program’s Community Investment Teams at both the San Rafael and Santa Rosa medical centers review applications and grant funds in Marin and Sonoma counties. The first step in deciding what organizations to fund is sending out a request for proposal (RFP) to nonprofits in the area. Applications are then reviewed, and grants of up to $20,000 are awarded to qualifying agencies with the best proposals. Nonprofits need to demonstrate the funding will make a difference in the health of the community.
Many nonprofits address health-related concerns and need doctors or other health care professionals to participate on their planning bodies and boards of directors. Kaiser strongly encourages its staff to volunteer. Kaiser employees sit on more than 80 nonprofit boards, offering medical, clinical or financial expertise. Staff members also volunteer in nonprofit clinics and participate in community events. More than 300 people walked in the Heart Walk this year, raising money for the American Heart Association. Senior Vice President and Area Manager Judy Coffey lost her 19-year-old daughter to a heart condition in 2007, and Kaiser employees walked to show their support.
Kaiser also helps fund local events, including Face to Face’s Art for Life, Food for Thought’s Calabash (Food for Thought is the Sonoma County AIDS Food Bank) and Celebrate Life in Marin County, with community investment dollars. Sponsorship means that money raised at these events can go directly to the agency instead of paying for the event. Kaiser’s annual giving campaign encourages employees to donate through payroll deductions either directly to local charities or through United Way. They can give as little as $2 with no administrative fee and every dollar goes directly to the designated agency. This year, Kaiser is rewarding employee generosity with matching incentive grants to an employee’s donation up to $100.
Kaiser also participates in a number of community health events, either as a sponsor or alongside nonprofits providing services. It was the first major sponsor of the “Neighbors in Health” event. This year, United Way was the lead agency, but Kaiser continued its support through sponsorship. More than 100 community partners participated, and 502 children received free immunizations, dental work and kindergarten physicals.
Every penny counts
In the North Bay, local companies of all sizes are choosing to make a difference, demonstrating community support through employee volunteerism, board membership, donation of goods and services, grants, event and program sponsorship and financial support. The point is, these days businesses can be creative in their philanthropic ventures. And since there are almost one million nonprofits nationally (hundreds of them are local), there’s an organization that can match any area of interest—from education to health care, children, animals, the environment and beyond. In the spirit of “act locally, think globally,” everyone must do their share to sustain a thriving community. It really is true, every little bit does count, and each donation does make a difference in our corner of the world.
Click here to read Exchange Bank’s Community Ties
Click here to read Red Cross Gets Ready
