Are You a Good Neighbor?
Donation Strategies for the New Year
November/December 2007
By Stacie Hanna
Tis the season! This is the time of year many restaurateurs and caterers see a dramatic increase in the number of donation and sponsorship requests received. The requests can be overwhelming, so how do you best handle the influx?
Evaluating what is right for your business can be a complex and personal task. However, a strategic, purposeful, year-round donations program also can be a key element to your establishment’s success. “Giving back to the community is a privilege and an opportunity,” says Pano Karatassos, Founder & CEO of Atlanta’s Buckhead Life Restaurant Group. “Our industry is historically very generous. Often, doing the right thing for the community can also be good marketing. Typically, we (at BLRG) support causes about which my team and I are passionate about and those that offer the chance to �do good’ while also building our company’s image with our target audience.”
Tony Conway, president of A Legendary Event catering in Atlanta, credits his sponsorship and donations program with helping his company win new accounts and in building its name. In ten years of business, A Legendary Event has granted approximately $7 million in cash and in-kind services. The catering company’s approach to giving is strategic, ensuring its generosity helps the community and, the company’s bottom line. “I believe in being a corporate good citizen. Give back and it will come back to you,” Conway adds. “We evaluate donation opportunities based upon specific priorities. The structure helps us make the most of each contribution.” Budget, marketing exposure and the opportunity to bid on related design or catering business are among Conway’s criteria. Current customers always go to the top of the list. A donations committee, including Conway and members of his management team, meets quarterly to evaluate and grant donation requests.
Rich Chey, owner of Doc Chey’s restaurants throughout Georgia and the Carolina’s and Osteria 832 in Atlanta, also takes a team approach to giving back. “In the past, we made independent decisions based upon each restaurant’s neighborhood. Now we are centralizing our efforts and created a board to oversee how money is raised and distributed,” he says. “I want to share the rewarding experience of giving back with my team and the consolidation allows us to make a greater impact with our donations.” Chey and his team tend to focus more on neighborhood causes, impacting the areas in which they operate. He donates to a few outside events and organizes his own fund raisers throughout the year. His grass-roots approach is a key part of his annual marketing plan. Chey says he sees more “bang for the buck” from supporting community events than from higher cost alternatives like advertising. In fact, Chey’s recent customer survey results support this strategy. Nearly 95 percent of responding guests cited community involvement and word-of-mouth when asked “How did you hear about Doc Chey’s?”
So how do you put a strategic, year-round donations program to work for your company?
Getting Started
First, consider your business objectives and how supporting the community can bolster them. For example, if you are looking to gain attention for your restaurant’s catering program, you might consider an in-kind catering donation to a high profile event. Looking to promote a new chef? Arrange for him or her to make appearances or donate auction items featuring the chef. The possibilities are endless. Creating a process and specific criteria for evaluating requests can help.
Second, establish a budget, determine who will administer the program and decide what type of donations are a fit for your company (cash, in-kind product and services, chef appearances, gift certificates, etc.). Will you have a focus for your charitable giving – for example, give only to children’s causes, local organizations or hunger charities – or, will you take a broader approach? Then, decide whether you will evaluate requests on demand or on a set schedule.
Ask the Right Questions
Get all donation requests in writing. These materials sometimes reveal how well the fund raising effort is organized, a key indicator of how your business will be represented and recognized.
Gather as much detail as possible. Key questions may include:
- When and where does the fund raising effort take place?
- What audience does it attract? How large is the audience?
- Who does it benefit?
- What other sponsors are involved?
- Are there other restaurant or catering partners and if so, who are they?
- What type of donation is requested?
- Is there an opportunity to do business at the event or with the organization in the future?
- How will my restaurant get exposure in front of the organization’s audience? What other benefits are available?
- What are the sponsorship levels, if applicable?
Get Recognized
While some proprietors may be reluctant to ask for recognition, most organizations are eager to create mutually beneficial partnerships. “We try to create a win-win for our sponsors,” says Alexandra Flynn, special events manager for the Juvenile Diabetes Research Foundation (JDRF), an organization that frequently partners with restaurants for openings, auctions and varied events. “We ask ourselves if we were in their shoes, what we would want to get out of our donation, and then try to deliver that benefit.”
Don’t be shy when asking what you will receive in exchange for your donation. Typical benefits include: tickets to attend or entertain clients at an event, acknowledgement in marketing materials, signage and/or advertising in a newsletter or program. At times, guest mailing lists may even be available for your company to use for follow-up marketing efforts. Some organizations, like JDRF, actively encourage constituents to support the businesses that support them. Reviewing sponsorship levels is particularly useful when negotiating exposure in return for contributions, emphasizes Conway of A Legendary Event. Whether your donation is cash, in-kind or a combination of the two, always request sponsor recognition equal to the retail value.
Stay Positive
Opportunities to support fund raising events from gala parties to golf tournaments dominate the field of requests. These events can be powerful in putting your business name or product in front of current and potential customers. But, take caution to choose carefully or a positive can turn negative. Visit the event location when possible and always confirm all logistics before making a commitment, especially when food is involved. Research the setting, preparation area, presentation style, service arrangements, attendance and other food or beverage will be served. Donate food only when you are certain your product will be served and presented properly. And as always, keep safety top-of-mind. “If you are cooking on site or donating food of any kind, be careful about liability issues for the event,” advises Conway. “Make sure the venue or organization names your business as an additional insured or provides a release of liability.”
Involve Your Team
Community giving can have a tremendous influence inside your organization, too. Sam Burn, Commissioner of Culture for Jim N Nick’s Bar-B-Q which has over 21 locations, three residing in Georgia – Conyers, Acworth and Hiram, says building internal pride through charitable giving is equally as important as outside marketing value. “By being involved beyond the check-writing aspect of a donation and by including our people in a real and tangible projects, we are not only able to connect with new guests within our community, but we are also able to communicate to our employees the larger purpose of our business and clearly demonstrate why we do what we do,” Burn says.
Involve employees in your community efforts when possible. Whether collecting donations from guests for a holiday toy drive, helping serve a meal to honor veterans or serving on a committee to grant donations, employee involvement can be a powerful internal brand building opportunity.
After all, helping to make a difference in the community can be extremely rewarding – personally and for business. Why not share the enjoyment?
Stacie Hanna is an independent marketing consultant. Her company, Sequel Marketing, offers comprehensive and project-based marketing services. She can be reached at (404) 841-2327 or at stacie@sequelmarketing.com.
