Charitable giving is on a roll
Carol Head's mission is to feed the hungry.
As owner of Oliver's Artisan Breads, she delivers hundreds of European-style loaves and rolls each day to restaurants, grocery stores and food-service operations in Southern California and beyond.
Last month, she decided to increase her efforts by donating a portion of her San Fernando company's profit to Bread for the World, an international charity.
"When you are a business owner, you have both a responsibility and an opportunity to sort of bring everything that you are and everything you have to help solve a problem," Head said.
The food-focused charity is a perfect fit for the small business the former marketing executive bought in 2002, expanded to 36 employees and projected sales this year of $2.5 million.
Head's endeavors are part of an increase in charitable donations nationwide. Giving by small businesses isn't tracked separately but their contributions helped push total giving in the United States last year to more than $300 billion for the first time, according to estimates from Giving USA 2008, an annual philanthropy report released last month by Giving USA Foundation.
The $306.4-billion estimate is up 3.9% over the previous year, according to the foundation, an arm of Giving Institute, a Glenview, Ill.-based consulting firm. That compares with a 4.2% increase in 2006. More small businesses are making charitable giving part of their business strategy but not all have the know-how to do it effectively.
"It's the rage, it's wonderful, we love it on the one hand," said Jennifer Stapleton, senior manager for marketing and branding at Washington-based Bread for the World.
"On the other hand, I just spend a lot of time flipping through [e-mails from] random businesses or people who want to work with us in a way to elevate their business. They clearly haven't done their research."
How can you make sure that your good intentions lead to good results?
"They have to do the same thing they do with their cash flow; they have to manage it," said Paul Jones, a cause-related marketing consultant and principal at Alden Keene & Associates in Sandy, Utah. He also writes a blog on the subject.
As with any business strategy, skimping on planning or the tactical steps probably will result in disappointment for the small business and the charity.
To avoid that, here are tips from Jones and other experts:
