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Charitable giving is on a roll

More firms are tying contributions to a relevant cause, which can boost profit. As always, research is key.

SMALL BUSINESS

July 14, 2008|Cyndia Zwahlen, Special to The Times

"They were actually pretty rigid about what they needed because we actually had to sign a contract with them that stated that in order to publicize that we donate to them," we had to follow certain rules, said Lisa Peri, co-owner of Lucky Earth, which makes a cleaner for waterless car washes.

The 1-year-old company, which she owns with her husband, Jeff, promotes Heal the Bay on the back of its spray bottles. Once Lucky Earth is profitable it will donate 1% of its net income to the organization.


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Head of Oliver's Artisan Breads signed a formal agreement that spelled out her plan to donate 10% of the profit from each loaf she sells at a grocery store. That sector is a small part -- 12% -- of her business, but the deal offered Bread for the World valuable exposure to its target demographic. Head will put a sticker on thousands of loaves of bread this year alone, touting the charity and the donation.

* Don't back off when money is tight. To sustain charitable giving as part of your larger business purpose, you have to be consistent, Jones said. Many consumers look for information about a small businesses' charitable activities.

Profit margins are slimmer this year at Oliver's Artisan Breads as higher fuel costs and even bigger jumps in the price of wheat have sliced into income. But the owner isn't letting that stop her.

"Does that change how I feel about the need to recognize that there are hungry people in the world?" Head asked. Her actions demonstrate that the answer is no. "I put a guaranteed minimum in the agreement [that] they will receive at least $5,000 annually," Head said. "But we expect to blow way past that."

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cyndia.zwahlen@latimes.com

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