Cash, goods or volunteers? All are helpful

The needs of nonprofits are large and broad ranging. And even if they attract people interested in helping out, the form of that help can present the nonprofit with serious – and important – choices.
“Philanthropy or giving to charities and nonprofits can take several different tracks – time, talent and treasure,” said Janice Pothier-Pac, executive director of the Providence-based Volunteer Center of Rhode Island, which refers more than 10,000 volunteers each year to more than 500 governmental, nonprofit and educational institutions statewide.
“The key is finding the right match between the company and nonprofit need at that particular time,” Pothier-Pac said.
While the most obvious form of help is the simple financial commitment, “people can overlook the value of giving of their time and their talent,” she added.
There are no givens in the world of nonprofits today. With more than 4,700 nonprofit agencies in the state seeking support, the competition for scare human and financial resources is intense. Very often the donor is as involved in decided what form the assistance will take as the recipient.
It is not a black or white answer for Joseph J. MarcAurele, president of Citizens Bank of Rhode Island, who leads a work force of 5,400 in the state and has made giving a core part of Citizens’ company culture.
“We do what makes sense,” he said – and often that means direct financial support. “We donate 1 percent of our pre-tax profit back to the community. It is simply the right thing to do.”
But Citizens’ commitment is more nuanced than simply making a cash donation. “We don’t just like to write a check,” said Jeanne Cola, community relations manager at Citizens.
If a charity it chooses to support needs volunteers to paint, clean up or otherwise help out, Citizens can be there. If a nonprofit needs information technology services, Citizens taps its IT experts.
“What we really like to do is both [provide volunteers and financial support]. It makes our colleagues feel good about the company and makes them proud that they work for a company involved in the community,” MarcAurele said.
Every little bit helps, according to Lisa Smolski, executive director at the Rhode Island Free Clinic in Providence. A combination of cash and volunteers goes a long way, especially at a clinic that provides free health care to the uninsured men, women and children of Rhode Island.
“We have rent to pay, utilities and operating costs like any other business. So it’s not either cash or volunteers that we need – it’s a combination of both,” she said. “There needs to be a dialogue between the charity and the donor, and you have to be creative about it.”
Sometimes donors can get creative with in-kind contributions. The clinic receives 50 percent of the dinners it feeds to its volunteers through donated meals by local area restaurants.
Blue Cross & Blue Shield of Rhode Island has provided the clinic with several forms of donations, including a $35,000 grant, volunteers and an opportunity to spread awareness in presentations to BCBSRI employees.
The health insurer also wrote about the clinic’s need for volunteers in its Choices magazine, which goes out to all of its member families.
“I think companies have resources they can bring to bear that go beyond the dollar,” Smolski said.
BCBSRI went beyond the dollar when it provided Amos House, a Providence-based nonprofit that provides shelter and meals to the homeless, working poor, and unemployed, with $25,000 for prescriptions, as well as a slew of volunteers.
“We always look for a good fit and [then] provide some kind of financial support and volunteer support,” said Linda Newton, vice president of community relations at BCBSRI. “We really never want to be a check writer. Our goal is to build community.”
But there can be no doubt that many nonprofits are cash-strapped. At Amos House, for example, 52 percent of revenue comes from cash donations, according to Executive Director Eileen Hayes, although the nonprofit also realizes the need for manpower.
“We got a $10,000 gift from Collette Vacations. But more importantly, the staff at Collette worked hundreds of hours at our soup kitchen,” Hayes said.
“The thing they have found is when employees get involved in volunteering, they are better employees, because they know they are doing something meaningful.”
The Volunteer Center sees that benefit, and more. Volunteers can network, develop new skills, build self-esteem and improve their health. Besides those, Pothier-Pac also sees increasing benefits for the nonprofit.
“What we are finding is that often people who give their time and talent find a stronger connection with the work of an agency,” she said. And as a result, they may be more likely to make a monetary donation.
Although volunteerism has many advantages, it can present challenges for businesses that allow employees to take time off during the workday to help out nonprofits.
“It is a very busy and demanding work day,” said BCBSRI’s Newton. And “we really need our [customer service staff]. Their work cannot be done at an off time,” meaning that taking time during the workday can present hardships to the employer, pushing companies toward encouraging cash donations versus making donations of their time.
Last in the pecking order of why companies would be interested in making cash donations is their tax treatment. Just like with individuals, donations to charity can be tax deductible. But many businesses say it is not a factor in the decision to write a check or provide in-kind donations or volunteer.
“As a nonprofit company we do have some tax advantages and get the benefit of tax deductions for our philanthropy but that is less significant for us,” Newton added. •