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Putting Business Superpowers to Use in Times of Need

business

Putting Business Superpowers to Use in Times of Need

Airbnb saw an opportunity to render support when turmoil spread across Afghanistan as the U.S. announced the withdrawal of military forces.

The company offered to temporarily house as many as 20,000 Afghan refugees globally, with Airbnb’s chief executive expressing hope that others would be inspired to follow the company’s lead.

The move was just one example of how many multinational corporations have robust corporate responsibility programs that can move with lightning speed to respond quickly and effectively when disaster strikes.


But it’s not just larger corporations that possess the wherewithal to help in significant ways during times of need. Small and midsize businesses also can seize the opportunity to assist, says Maggie Z. Miller, the ForbesBooks co-author with Hannah Nokes of Magnify Your Impact: Powering Profit with Purpose (www.magnify-impact.com).

“They may not have the focused attention or financial resources of bigger companies, but they can create a plan for their community impact to be valuable and effective,” Miller says. “These companies are often more nimble and able to act quickly and efficiently. They can capture the opportunity to leverage the power of impact to support their success.”

The Many Ways To Help

All businesses, regardless of size, have the potential to make a difference, whether they realize it or not, say Miller and Nokes, who are co-founders of Magnify Impact, a company that helps business leaders not only be prepared to react swiftly in times of crisis, but build a proactive strategy for effective social impact.

“Businesses have unique abilities and access to resources to solve problems for their employees, customers, communities, and even the planet,” Nokes says. “Companies can use these unique talents to create shared value, driving their competitive advantage while helping make a tremendous impact in their operating communities and the world.”

Miller and Nokes refer to those resources and talents as a company’s “superpowers.” Sometimes the superpower relates directly to the company’s product or service, as was the case for Airbnb. Another example of this is Warby Parker, which specializes in eyewear. Since 2010 the company has given away 8 million pairs of glasses to people in need around the world under its Buy a Pair/Give a Pair program. Due to COVID-19, Warby Parker shifted its efforts to distributing personal protective equipment and preventative health supplies to healthcare workers and communities in need.

A company’s superpowers can go beyond its product or service, Nokes says.

“It can also mean expertise, knowledge, resources, skills, people or other assets that you put into action,” she says.

Meeting Expectations Of Employees And Customers

Increasingly, companies are understanding that social impact is a critical component to an effective business strategy. One trend that emerged during the COVID pandemic is that purpose-driven businesses outperformed their peers.

Beyond that, employees and customers expect businesses to have a social impact.

“In today’s connected and interdependent world, employees increasingly demand that businesses and their suppliers take part in creating solutions to the world’s most pressing problems,” Miller says.

Millennials are especially vigilant about researching and weighing the values and cultures of companies they want to work for, she says, and Gen Z is following suit, looking for authentic commitments from companies to take action beyond profitability.

Meanwhile, 66% of consumers say they would switch from a product they typically buy to a product from a purpose-driven company, and 77% feel a stronger emotional bond to brands that communicate a clear purpose.

“When a company offers its unique superpowers to the world to address the needs of society, people notice,” Miller says. “In turn, businesses can create loyal employees, brand advocates in their customers, and thriving business partnerships.”

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Maggie Z. Miller and Hannah Nokes are ForbesBooks co-authors of Magnify Your Impact: Powering Profit with Purpose (www.magnify-impact.com). They also are co-founders of Magnify Impact, a company that helps business leaders create effective social impact strategies. Miller has developed social impact solutions with hundreds of company leaders globally. Previously, she founded an international nonprofit organization to provide microcredit loans for thousands of women in Peru. Nokes has led corporate social responsibility for global corporations and founded an impact collaborative of companies in Austin, Texas.

give

5 Ways For Companies To Give Back – And Still Make Bucks

As the coronavirus pandemic turns much of the business world upside down, numerous companies have pivoted while reevaluating their purpose, products, and relationship with customers.

One area of emphasis that has gained traction is philanthropy. Many CEOs see helping those in need as an essential element of a business, especially in these unprecedented times, says Vince Thompson (www.meltatl.com), founder and CEO of the marketing agency MELT and author of Building Brand You: How To Use Your College Experience To Find And Win Your First Job.

“Goodwill is good business,” Thompson says. “To whom much has been given, much is expected. As we are all dealing with the many effects of COVID-19, working from home, and enduring the mental strain of these stressful, uncertain times, seeking to do good right now is one of the most important things a person or a company can do.

“Goodwill reinforces a company’s purpose, which reinforces esprit de corps. Externally, philanthropy is good PR for your business, especially for small businesses that depend on their communities to keep them afloat. People are watching how companies respond in tough times, and that goodwill is reciprocated by new customers and the continued loyalty of regulars. Philanthropic actions strengthen both a company’s internal bonds and its ties with the community.”

Thompson suggests five ways companies can give back and help their own business at the same time.

Expand your reach. Thompson’s company welcomes college interns every summer. Part of the program includes engaging them with several national brands, through guest speakers and field trips. But last summer, due to the coronavirus outbreak, he evolved his business model into a remote platform, expanding into a year-round virtual series of classes and podcasts, and substantially increasing enrollment while staying connected with his business’ primary partners. “It was a way to share more career development advice with college students and give them some help they really need during these perilous times,” Thompson says.

Encourage employees to help. “A company can create positive change by leveraging its strong team culture,” Thompson says. “Allow employees company time to organize outreach activities. Find out what causes they’re passionate about. You’re then sending the importance of the philanthropic message to your workforce. Getting employee involvement from the strategic phase onward helps the philanthropic initiatives align with company goals.”

Launch a charity drive. Start a collection for a particular cause. Your company can collect non-perishable food items for distribution at food banks. Toy drives are popular around the holidays. “You can set up automatic donations through virtual giving platforms,” Thompson says. “You could even leave out a collection jar at your place of business and cash in the collected amount to send through an online portal.”

Provide selected pro bono work. Philanthropic planning must be precise, especially during a pandemic as companies strategize on what’s financially feasible and what is not. But Thompson says there’s usually room to do a few extra jobs for free, which could go a long way for someone without the means to hire you otherwise. “Research and reach out to people who can use your services but can’t afford them,” Thompson says. “Involve your team in the nominating process. These are win-win feel-good actions.”

Help other businesses. “Buying from local businesses is one of the best ways to give back, especially when so many are struggling,” Thompson says. “Leave nice reviews and link to your favorite local companies on your website. Look for beneficial cross-promotions that are good for your business and your partners.”

“More and more businesses are now realizing the importance of giving back,” Thompson says. “It simultaneously improves employee and customer engagement while making a great impact on people’s lives.”

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Vince Thompson (www.meltatl.com) is the founder, chairman and CEO of MELT, one of America’s most successful sports marketing and branding agencies, and author of Build Brand You. An award-winning brand builder and sports marketer, Thompson has worked on brand strategies for some of the most famous brands in the world, including The Coca-Cola Company and Aflac. Thompson has been named one of Atlanta Business Chronicle’s “Most Admired CEOs,” among the “500 Most Influential Atlantans” by Atlanta Magazine, the American Diabetes Association’s “Father of the Year,” one of Sports Business Journal’s “Power Players,” and was listed by BizBash as one of the top 1,000 people in the event industry.

financial

4 Questions You Should Consider Before Giving Abroad

Whether you’ve traveled to distant parts of the world and were inspired by the inventiveness of the communities you visited, read about an issue in a news article, or maybe just feel a special kinship with a given place, the desire to help somehow can quickly move to the top of your priority list. Supporting the efforts of nonprofits working on issues you most care about is a great way to take action. But giving across the world can also be daunting. Luckily there are lots of resources to help make sure you’re achieving what you want with your generosity.

Regardless of whether you’re considering a one-time donation or sustained support to a charity across the world, there are a few questions you should consider before giving abroad:

1) Where would you like to donate?

There are plenty of issues around the world that could use, and are deserving of, your help. But which of those do you feel passionately about? Rainforest conservation in Brazil? Great! Schools for girls in Kenya? Fantastic! The first step is narrowing it down.

Do some research to find out which charities might align with your giving goals. A quick glance at most charities’ websites will tell you the impact the charity has had in the past and how it is working toward its mission today.

This research can sometimes be more challenging than a simple web search. Some foreign organizations have a great online presence with translations into English and clear information. However, this is not always the case. In these instances donors can rely on a few resources:

There are a number of 501(c)(3) organizations that facilitate international grantmaking and who provide extensive databases of organizations eligible to receive funding through them (see, for example, the CAF America Database). Some countries have national registries of charities such as the UK Charity Commission and the CRA List of Charities in Canada that can serve as good country-specific resources.

2) How do you make sure you’re not breaking any rules?

As you might imagine, giving to charity across borders¾like any financial transaction¾is subject to specific regulation and oversight from the U.S. and foreign governments, which makes cross-border giving more complex than simply writing a check and dropping it in the mail. There is a complicated matrix of regulations that donors are required to follow. These regulations are designed to defend people and organizations who donate against money laundering, terrorism and organized crime.

While you might think most of these regulations exist on the receiving end of charitable contributions, these responsibilities impact the donor—whether an individual, a corporation or an organization. The bottom line is that if you are initiating the financial transaction, you are responsible for making sure that funds are used appropriately.  This seems intimidating, but working with an intermediary grantmaker or another U.S. public charity can take the guesswork out of following the rules. An experienced intermediary organization can conduct the necessary due diligence and protect the donors reputations, ensure regulatory compliance and eliminate possible risks.

3) Are there tax benefits to giving abroad?

When you’re passionately looking for a solution to support the charity that impressed you with their work on ocean conservancy, getting a tax break is probably the last thing on your mind. But it is not a bad thing to consider, because a tax deduction ultimately means that more funds are available to donate and more good can be done.

Not all charitable donations are tax-deductible, and in fact donations made directly to charitable organizations outside of the U.S. do not qualify. That said, there are several U.S. charities that can allow you to receive a tax deduction while supporting charitable work overseas. For example, you can opt to support the international projects of U.S. charities that run programs abroad. If you would prefer that your donation be directed to the foreign charity, you can opt to make your gift through a U.S. intermediary organization. Intermediary organizations are U.S. public charities that often assume the inherent risks in making donations to organizations outside of the U.S. and allow the donor to receive a tax receipt at the time of their donation. Your gift is to the intermediary; however, you will be able to recommend a specific foreign charity to be supported with your donation.

Donors should check how the specific intermediary organization they choose to work with operates, as there will be differences among them regarding the due diligence they perform, the fees they charge, etc.

4) What impact would you like to make with this donation?

Whether you’d like to effect change with a long-term impact like paying for a child’s education or in a more immediate way like supporting a community after a disaster, it is important to think about your expectations at the outset. Clarity about what you’d like to accomplish with your donation helps set expectations between you and the charity.

Giving outside of the U.S. is complicated, but luckily there are a number of organizations that specialize in cross-border giving, making it accessible for Americans to support charitable causes in nearly any country. With the assurances of a comprehensive due diligence and foresight, giving internationally can be a fulfilling experience. By considering the needs on the ground and the goals of your own good intentions, you can take full advantage of the immense capacity to do good provided by charities around the world.

TED HART, ACFRE, CAP® is the President and CEO of CAF America and brings over thirty years of experience in advising global philanthropy. He is the editor of Cross-Border Giving: A Legal and Practical Guide, Workbook Edition (Charity Channel Press, 2019). For more information, please visit, www.cafamerica.org and connect on Twitter, @cafamerica.