Giving Back Strategy: How to develop an effective donation strategy

Donating is not enough: How to develop a donation strategy

It is common for many companies to donate a portion of their profits to an organization. Especially to maximize their tax deductions and support their marketing. Donating is important and helps non-profit organizations. But the reason these companies donate is mainly because they are dedicated to increasing their revenue - not creating much-needed change.

In this article, we look at how you can develop a donation strategy that brings about real change. A strategy for social engagement that also inspires your customers to support your company and take action themselves.

Why donations are not enough

We've all donated to a cause we support - either as an individual or as a company. While our intentions are noble and we feel good. After all, we're helping non-profit organizations continue their good work. But honestly, it's nothing special because everyone does it.

Worse still, in a corporate context in particular, simply donating money could come across as lazy. Terms such as couch activism or slacktivism are not new. Similarly, topics such as brand activism and "wake washing" - i.e. supporting a cause for the sake of profit - are increasingly being criticized.

How can your customers tell the difference between genuine support for a cause and a wind-up? When you truly support a cause, it's ingrained in your company's DNA. Your fiery passion drives everything you and your team do in your company.

Your strong vision of a better world is the reason why you founded your company. You have defined your mission in order to take the steps to make this vision a reality.

This is reflected in your internal and external communication: on your website, in your social media channels and in your mailings. Your passion for the common good and a better world is the reason why most of your customers support you. So that they too can actively contribute to your cause.

Which business owner are you?

If this applies to your company, you are already running a social business and your customers and interested parties will feel your passion when they read your info page.

To strengthen the bond between you and your customers, continue reading the following tips. Then you can also see whether you have fulfilled all the points in your donation strategy. I would also like to invite you to comment below and share your valuable tips.

If you' re committed to a cause - but you haven't yet taken steps to fully integrate it into your business - this article will help you develop a strategy to gain the support of your customers and grow even more.

You're only in business for the sake of profit and have no interest in making the world a better place? I understand that and it's okay. Maybe "making the world a better place" sounds too difficult or impossible and I'm sure you have enough on your plate already. We've been taught as a society to be driven by money.

Nevertheless, I would like to inspire you to read on. I hope you care about people and our planet. Even if you don't, I know you care about what your customers want. Fortunately, more and more consumers are now making demands for social change within a company. And if you ignore their demands, it will be more difficult than if you try to create much-needed change.

So think about whether you are really making an effort to satisfy your customers by developing an effective donation strategy.

3 steps to developing a donation strategy

  1. Choose your request
  2. Choose a model to return
  3. Define your collaboration

1. choose your request

What is closest to your heart? Is it the protection of animals and our environment, gender equality, fighting poverty and hunger or supporting children with disabilities?

It shouldn't take you long to figure it out. You know what drives you. Now it's time to combine your passion with your talents and offerings.

Answer these questions:

  • Are there synergies between your passion and your skills? 
  • What positive changes do your products and services bring to this world? 
  • How do they help others?

To find answers, find out about the 17 UN Sustainable Development Goals (SDGs) and decide which ones best match your passion and skills.

To avoid overwhelming yourself, choose up to three SDGs. You will soon see how they are connected. For example, if you choose number 6 (Clean water and sanitation), you will also contribute to achieving number 3: Health and well-being.

With my passion for protecting animals and our environment, my marketing studies and experience, I decided to develop and implement ethical marketing strategies for those committed to achieving the following UN Sustainable Development Goals:

  • No. 13: Climate Action
  • #14: Life under Water and
  • #15: Life on Land, what I call the SDGs for nature.
Giving Back Strategy: How to develop an effective donation strategy
What I am committed to: the Sustainable Development Goals for Nature.

As soon as you have a concrete idea, you should communicate it internally. This is an important strategic decision: You want your whole team to be on board.

2. choose a model to return

You've just read about the "why" and the "what". Now it's about the "who" in your donation strategy. Who do you want to help? Which partner will have the greatest positive impact for your cause? Which model best suits your organization? Do you want to work with a local, national or international partner? What kind of partnership do you want, with or without collaboration?

Models that you can consider

Individual organizations - Decide for yourself who you support:

  • With all of the following models, you can decide for yourself which organizations you would like to support. With this and the following option, however, you must check for yourself whether you can find a valuable partner.
  • There is no limit to the number of organizations you can support. However, you should not underestimate your time and ability to make valuable collaborations. You may only want to find one partner - for example, if you prefer a deeper relationship or don't have enough employees to maintain every partnership.
  • If you don't have an organization in mind, you can do your own research and ask people you trust for recommendations. Your employees and partners are a good place to start. This may take some time, as you are looking for a trustworthy partner for the long term.

Community Involvement - Let your community decide:

  • Would you like to leave this decision to your employees or members? It works well at Ecoflix. After I paid my membership fee, I was asked to tick a box for a charity partner of my choice, to which 10% of my membership fee went. It's not much, but at least it's something.
  • A unique way to encourage creativity and motivate employees is to set up a corporate giving program. You can match their donation at a ratio of your choice, offer scholarships for volunteers, give employees a discount on products and in return donate those products to an organization. You can find more examples here.
Giving Back Strategy: How to develop an effective donation strategy
Giving back is the motto for sustainable success.

Microgiving memberships

  • When you enter into a partnership with microgiving organizations, the vetting process is already complete. In return for a membership fee, you will receive a list of partners or projects that you can support.
  • In 2019, I became a member of B1G1, which offers a Buy1Give1 model. Every time an event occurs in your company, you can support a project by putting together individual donation packages. 

Every time a reader reviewed my book, a girl in India had access to a literacy program. For every new order I received, a woman in Bangladesh had access to a sewing machine for her business for 7 days and for every new newsletter subscription, I funded a day of rabies vaccinations for street dogs in Nepal. 

Giving Back Strategy: How to develop an effective donation strategy
Giving Back Strategy: How to develop an effective donation strategy
B1G1 projects are a fun and transparent way to show your customers how they have contributed.

At the beginning of each month, I would go "shopping" after seeing how many newsletter subscriptions, new projects, book reviews, etc. I had received. I funded these projects while adding more to my shopping cart. Simply because it was fun and increased the positive impact of my clients and my business.

Since 2020, I have been a member of 1% for the Planet, an organization founded by Patagonia founder Yvon Chouinard, where members donate at least 1% of their sales to environmental organizations of their choice. The organization recently teamed up with B1G1, so I'll be able to create stories about "giving" again in 2019. Let the conscious shopping begin!

Microcredits

  • Help others start their business. Kiva is a crowd-lending organization that finances projects and small businesses worldwide. Borrowers submit their applications, which are reviewed by local staff on the ground and, if accepted, published on Kiva's crowdfunding platform.
    Lenders then select the projects they wish to support. They have a repayment rate of 97%, which can vary.
    With this model, you can support local farmers, refugees, educational and medical programs, Covid-19 sufferers, underprivileged women, etc.

These are just a few examples. There are other micro-donation and micro-credit organizations. Please research them to make your own decision.

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3. define your collaboration

The reason I switched from B1G1 to 1% for the Planet was that B1G1 didn't have enough projects for the sustainable development goals I wanted to focus on at the time: No. 13, No. 14 and No. 15. Now they do, and with their partnership I can combine the two.

What I particularly like about 1% for the Planet is that I can build a relationship with my charity partners. Depending on the structure of the partners you choose, you can not only donate, but also volunteer, design campaigns together and collaborate in many creative ways, which is very attractive for people who want to get actively involved.

The more you get involved, the more your vision will become reality. And the more trust and loyalty you will gain from your customers.

Everyone donates, but not everyone inspires their team to plant trees or participate in a weekend beach cleanup. When you create a giving strategy that is unique to your brand and industry and motivates your entire team and customers, you become something special and memorable.

Giving Back Strategy: How to develop an effective donation strategy

Your donation strategy will not only make your customers happy, but is also a fun and transparent way to show them that they have made a contribution without having to pay extra. 

Because donating is not about you or your company, but about your customers. Without them, you wouldn't be able to give anything back. So focus your communication on them, not on you.

Conclusion: It's in your hands

If your fundraising strategy is authentic and inspiring, it will not only motivate your team, but also attract customers and cooperation partners who believe in what you do. 

It's right to give something back - but it's also good for business. So let's make it a part of who we are and not something we do because it makes us feel good.

Comment below and let's talk about how you're giving back.

Your questions on the topic of donation strategy

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