More News

While nonprofits throughout the region predict corporate donations to be sliced in half this year, philanthropy remains business as usual to some Maryland companies.

About 42 percent of nonprofits surveyed by the Center for Nonprofit Advancement said they expect giving to go down this year, adding that such support has already dropped 11 percent since December. The Washington center supports more than 13,000 nonprofits in the region.

Those companies that support charitable efforts, through either monetary or in-kind donations or volunteer labor, get intangible benefits, experts say.

Such efforts give businesses something to talk about in their marketing communications that does not sound entirely self-serving, said Judy Harris, associate professor of marketing at Towson University.

"It potentially grabs customers' attentions and builds awareness among a target audience they might not normally reach. It also works as a reason for people to purchase, if they can tell themselves they're supporting a business that supports others," she said. "It improves the brand image of the company in the long run."

A study by the European Group for Organization Studies tracked a positive correlation between businesses that supported nonprofits and those that reported successful finances. The study also found such philanthropy can improve relations with bankers and investors, attract better employees to provide better customer service and bolster a company's reputation among its stockholders.

"The relationship is bidirectional [for both the business and the charity] and simultaneous," the study said.

"Thinking of philanthropy in terms of money is myopic," said Joydeep Srivastava, an associate marketing professor of the University of Maryland, College Park. "There's an underlying psychology to it that goes beyond just goodwill."

Bucking the trend

Among the region's businesses that are bucking the downward trend is Mona Electric Group. The Clinton company, through its owner Vincent "Cap" Mona, founded and has supported Christmas in April Prince George's County since 1989. The local group is part of a national organization that fixes houses for elderly and disabled residents each spring.

Christmas in April plans to renovate 76 homes Saturday. A shortage of volunteers and donations lowered the number from the usual 100.

Mona Electric has consistently provided the project with information technology support, electrical work, supplies and free office space, and sponsors an annual golf tournament fundraiser. The company has provided more than 610,000 hours of volunteer service to the organization since it started; it has provided 130,000 hours since 2005 alone.

"If not for them, Christmas in April Prince George's would not be here," said Mary Kucharski, the organization's executive director. The nonprofit has an annual budget of $100,000.

"We haven't cut back, although after the last couple of years, we've mentioned it," said David McKay, president and CEO of Mona Electric. "People are clearly more in need of business support in these times … We're in the construction business, so we knew we could help — we have connections. Here, you're changing someone's life."

Mona Electric also donates to leukemia foundations and gave property that Christmas in April rents out for additional funding.

‘One petal at a time'

StretchAlicious, an active clothing retailer in Potomac, is also devoted to charitable causes, most of which are linked to the five women owners or their employees. A company fundraiser in February 2008 generated more than $11,000 for autism research, with an additional 20 percent of sales benefiting the cause during StretchAlicious' grand opening in April 2008.

"We recognize a lot of [nonprofit] donors probably aren't able to donate lately, but as a business, you have to still do what you can," said co-owner Jessica Lilienfield.

The company also produces pants that come with half-daisy patches in one of five colors, with each pertaining to a cause: breast cancer, autism, Alzheimer's disease, domestic violence and the environment. Ten percent of each sale goes to a charity involved in the cause.

"Charitable support has always been part of our business model," Lilienfield said. She said the company originally raised money only for breast cancer, because both she and another owner are cancer survivors, but StretchAlicious soon adopted other causes such as Alzheimer's for one of the owner's mothers and autism for another owner's family.

"Our motto is: ‘StretchAlicious, fighting causes one petal at a time,'" she said.

StretchAlicious also hosts charitable events on behalf of its clients' interests. These community contributions represent the sixth petal on the half-daisy, Lilienfield said.

‘Support is more than just money'

Telecommunications giant Verizon typically mixes its employee volunteer efforts with grants, providing more than 200 nonprofits in Maryland and Washington with $1.8 million through its Verizon Foundation last year. Most of the beneficiaries are involved in literacy efforts, or reducing and helping victims of domestic violence. Grants are awarded through an application process.

"We're not expecting to give less. We'll probably be level-funded this year," said Susan C. Butta, vice president of external affairs for Verizon's Maryland division. "What it boils down to is we are very much a part of the community. We have 12,000 employees living or working in Maryland, so helping out is our responsibility.... They likely are our customers."

Verizon also encourages employees to volunteer with charities: It donates $750 to the organization if the employee works at least 50 hours with the group. Butta said employees "love" having Verizon sponsor charities of their choice.

The South Baltimore Learning Center received $5,000 from Verizon last year to support its adult literacy program. Verizon also serves on the center's technology committee and provides IT support.

"There's no way we could run our programs without the support from private companies," said Sonia Socha, executive director of the center. "Verizon is a wonderful partner to have; their support is more than just money."

The law firm of Ober, Kaler, Grimes & Shriver in Baltimore also has a program dedicated to supporting nonprofits, awarding two $10,000 grants and one $15,000 each year. The larger grant also comes with about 400 hours of volunteer service through 20 employees to the selected organization. Grants are given to organizations focused on educating, clothing, sheltering or feeding disadvantaged youth in Baltimore.

The firm was able to increase the bigger grant to $25,000 with last year's profits, but has since had to scale it back to the usual amount, said Joseph Korvars, a principal and chairman of the grant program.

"It's our commitment to keep the program alive," he said, adding that the firm has donated money for almost seven years. The program began after the firm's centennial in 2003, when the owners decided they wanted to do something special marking the milestone.

Last year, the firm's big beneficiary was The Ark, a Baltimore nursery school for homeless children.

Korvars said that if the volunteering entails workday time, the employee doesn't lose any pay.

Yvonne Battle-Felton, president and director of BusinessSuites Harborplace, a division of the Texas company that provides office space, said she sees support for nonprofits as a major way to revitalize the economy and generate a sense of community.

BusinessSuites offers free days of office space throughout the year to nonprofits hosting business-related meetings, workshops or networking events.

"We're trying to find ways to become more of partners with the community," Battle-Felton said, adding that the company has also donated items to Baltimore's House of Ruth domestic violence shelter and is seeking a nonprofit for employees to volunteer with.

GIVING BUSINESSES

Among Maryland companies that have supported charities recently:

Sperry Van Ness-Miller Commercial Real Estate of Salisbury raised more than $3,000 on Sunday to support the March of Dimes.

Paul Davis Restoration and Remodeling of Gaithersburg donated restoration and remodeling services Saturday on a Dickerson home involved in Operation Second Chance, which helps modify houses for disabled veterans.

Blu Water Day Spa in Rockville used its grand opening last year to host a fundraiser for Soldier's Angels, which supports wounded soldiers, and for breast cancer awareness. The Day Spa Association in New Jersey gave the company its 2008 Spa Philanthropy and Healing Hearts Award for its nonprofit support.

The Bethesda law firm of Gelman, Rosenberg & Freedman devotes 70 percent of its business to helping nonprofits with their accounting, offering 10 percent discounts for the service and supporting the Excel Award for Excellence in Chief Executive Leadership through the Center for Nonprofit Advancement.