Corporate America Charitable Donations Can Eliminate Fund-Raising Non-Profit Organizations

When I took it upon myself to work on the first projecttax incentives for companies that donate a larger
that my company was going to release, I learned apercentage of their annual earnings to charity, there will
great deal about non-profit organizations. Since this firstalso be a need to monitor those programs, as well as
project dealt with charity awareness and donations, athe companies that are taking advantage of them. The
great deal of my research was focused in that arena.Better Business Bureau currently handles charity
Charities and public service programs are the mostevaluation, but it is optional for charities to belong to this
common form of non-profit organizations, and havecommunity. Perhaps, with the increased amount of
the most awareness and visibility of the public.donations, as well as the pressure of Corporate
However, later, I was greatly surprised to find out thatAmerica, it will then become a requirement for
there are a tremendous amount of non-profitcorporations to belong to the Better Business Bureau
organizations, whose sole purpose is to raise funds forcommunity instead of it being an option. With an
charities and public services programs!extreme elevation in the amount of charity
Once I learned about all of the methods in whichcorporations being monitored, it will then become
charities earn funds for their organizations, I suddenlynecessary for the B.B.B. to hire a significant amount of
noticed a flaw in the system. Why were there sopeople to support this increased effort. The IRS will still
many non-profit organizations needed to raise fundsbe responsible for monitoring corporations and their
for charities and public service programs? This wasdonations, but even they will need to hire more
the question that I began with. However, just aspersonnel in order to account for these new tax
anyone that knows me personally can tell you, I'mstructure changes and the amount of hours required to
never satisfied with identifying a problem. I also have toproperly monitor and audit these corporations and their
come up with one or more solutions. Little did I knowuse of them.
that I was going to later answer my own questionHow will corporations choose which charities to donate
better than all of the research in the world!to? Well, of course corporations can pick and choose
Charities spend a certain percentage of their incomeusing any means that they feel to be appropriate. With
each year on programs and events which arethese changes, organizations like United Way will
designed specifically on fund-raising for theirprobably have an elevated demand due to the fact
organizations. This is extremely familiar to the public,that a lot of corporations may want to donate to
and is a large percentage of most charities' annualorganizations that will blanket their donations over
income. Good Samaritans, or private donors, alsomany charities, instead of simply donating to a few.
donate a large amount of money each year to variousThis is good because it will also ensure that most of
charities and public service programs. We are allthe annual donations from corporations don't go to a
familiar with the many telethons, fund-raisers, and silentselect few charities, causing the remaining charities to
auctions we are presented with in a year's time. Theremiss out on the benefits of this program. Corporations
are even corporate sponsors, or products whichcould even split their donations over several of these
donate a portion of their proceeds to affiliated charities.charity communities, to maximize the number of
However, whenever you analyze the total revenuecharities actually benefiting from their donations.
donated from a single corporation to their total annualHowever, there will also be corporations that are
income, it is a small percentage indeed!looking to make a specific difference, and will market
So, where does a solution for fund-raising non-profittheir assistance to these specific charities to the public.
organizations come into play? As I said, I answered myWhat does this mean in the bigger picture of things?
own question. My first project was one which donatesWell, charities will have more visibility from the
twenty-five percent of its earned revenue togovernment due to the new tax programs for all of
participating charities. I then later made a consciousthe contributing corporations. Charities will also gain
decision to ensure that each program that I launchedmore visibility from the public due to their increased
would have a contribution, direct or indirect, to charities.visibility from donating corporations. Some corporations
This would basically mean that the program wouldmay directly market their donations to specific charities
have a donation to charities that was visible to theto the public. However, increased revenue to charities
public (i.e. the program is designed to create donationswill mean that they can also spend more on marketing
for charities), or that the program would be aand advertising, and will most likely provide at least a
money-maker for my company, and I would simplysmall amount of cross promotion for their major
donate a portion of the earnings to a charity or groupcorporate donors as well. This will provide yet another
of charities. By focusing upon this promise, it willbenefit and incentive for corporate donors.
increase my own awareness of charities that needCharity integrity will increase, and charity fraud will
help, and will help them even more than just andecrease. Having all charities required to be a part of
individual personal donation would.the B.B.B community, will mean that they will also be
Now, this percentage will not always be twenty-fiveparticipating in the B.B.B. stringent investigations and
percent, as my first project currently donates.guidelines. This will mean that any charity that is not
However, perhaps I can consider a more realisticfound within the B.B.B. website should be immediately
percentage of say ten percent? Since I just startedreported to the authorities. It will become extremely
my company in 2007, I can easily structure mydifficult to fool the public into donating to a false charity,
company to constantly account for a ten percentand will make it easier for the Justice Department to
donation of earnings to charities, and I do understandfind individuals that are running charity donation scams.
the difficulty involved for large or establishedThe public will have greater power to report fraudulent
companies to suddenly start to donate ten percent ofcharities, and they will be engaged to report them.
their earned income to charities. However, I am alsoGood Samaritans hate being scammed, especially
aware of how easy it would be to begin a charitywhen it comes to money that they are donating for a
donation program starting at one percent, and thencause that they are passionate about!
gradually increasing that donation percentage over theIn the end, after all of the changes settle and the final
years. Or, how about new corporate divisions whichkinks are dealt with by policy changes as well as new
are created over the years? How difficult would it belaws, we are finally looking at a total lack of a need for
to ensure that new corporate divisions or projects arefund-raising non-profit organizations. The total annual
structured to donate a percentage of its earnings to acharitable donations from corporation will increase in
single charity, or group of charities?the billions. Charities will finally have the increased funds
Now, consider this solution, but on a much larger scale.that they need without having to scramble and hunt for
If all new corporations donate ten percent of theirdonors, meaning that they can focus more time and
earnings to a charity or group of charities, how muchmoney on the actual issues that they are addressing.
revenue would that generate for charities annually?Charities will also not have a pressing need to
Then, take the next step and have all existingadvertise and market to obtain funding, and instead will
corporations begin their charity donation program byprobably do so in order to raise public awareness. In
beginning to donate one percent, or even a half of athe end, the increased contributions to charities will
percent of their annual earnings to charity. Then, thesemean that they will be able to hire more people within
existing organizations can increase this amount overtheir organizations to get out there and to make a
the next ten to fifteen years, depending upon theirgreater difference within their communities. More
profitability, until they also reach ten percent. In the end,helpers mean more people being helped. Every single
you would be looking at a monstrous amount ofone of these benefits elevates the ability of a charity
donated money to charities in America and around theto effectively make a difference in their cause, thus
world every year!raising their overall effectiveness.
What happens at this point? First, the need forIn closing, I have begun my journey down this path by
non-profit fund-raising organizations slowly diminishes.administrating my company in the manner detailed
So, as their need goes away, and as they go awaywithin this article. I do so in hopes that perhaps my
themselves, what happens to the jobs that theyprojections and predictions may become a reality, but
created? Well, the charities, that are now gettingalso because I simply want to help the charities that I
tremendously more donations annually than they everyam assisting to make a difference. I cannot expect
have in the past, now can afford to hire more peopleothers to do the same, or for these changes to
to assist them in accomplishing their goals. Hiring morebecome a reality in the near future, even if
people was definitely not an option in the past due tocorporations begin to move towards making these
limited funding. However, with Corporate America nowchanges. However, I still move down this path in the
providing a tremendous amount of charity funds thathope that perhaps other corporations will follow.
never existed before, it would now be possible forSetting a good example is about the best thing that
them to hire more people and to assist more peopleany company owner can do for the public, as well as
through their efforts in the process!for their corporate community. Time will simply let me,
Secondly, the need to monitor charities, and how theyand the readers of this article, know if my efforts truly
administrate these highly elevated earnings, increases.did make a difference.
Also, since there will most likely be new government