From Goodjoe’s website:

Goodjoe is dedicated to inspiring change through creative design and in the process giving back to the community around us. We really believe that people do great things when they’re inspired. A small change can and will create a big impact. Everyone really does care to make their surrounding world better. That’s why we created the goodjoe site, where hopefully, all kinds of creative and inspiring ideas are made visible and will be seen passing through the streets in many different forms.

Goodjoe will hold an ongoing T-shirt design contest. Everyone is welcome to participate by submitting inspiring T-shirt designs, rating designs, and giving artists positive feedback.

Here is how the process works:
1. Artists submit T-shirt designs with an inspiring message into the contest.
2. Each week, goodjoe selects inspirational designs from the contest to print.
3. Printed tees are sold and everyone involved (artists, schools, and other organizations) shares in the proceeds.

Goodjoe contacted me at The Fender Music Foundation last fall and proposed a t-shirt design contest in its honor. During the contest, we received 138 design submissions, and the winning design was much more stylish than what I would have designed on my own.

Goodjoe’s t-shirt design contests are a great way for nonprofits to engage potential supporters online. The company was established with the intention to make a difference, which they not only accomplish with their t-shirt design contests but also with how they treat their charities, celebrities and partners.

What a world this would be if every company were run like Goodjoe.

A video on social enterprise:

[youtube=http://www.youtube.com/watch?v=7u-HMmlkaAE]

Many people have dedicated their lives to making the world a better place. They have stood up for those without a voice, and they strengthen our communities. However, few of them treat their charitable dreams as businesses, and instead trust that they will make a difference because, “who wouldn’t support this cause?” But there’s more to a charity than the cause.

It is the charities that are set up as social enterprises (businesses that do good), however, that I see making the most difference. And, as long as they keep up with their competitors and with current trends and technology, I believe that they will continue to be effective. Edelman even did a study on this and found that consumers are much more likely to purchase products associated with causes — even if they cost more.

Sometimes, a charity can even last for a while without a strong business model behind it, but when an economic downturn comes along, these organizations seem to drop like flies. Over the past year or so, I have witnessed this. Social enterprises that are saving lives but have weak marketing are failing. Organizations that are saving the environment but have let their overhead get out of control are filing for bankruptcy. Charities that were cutting their communities’ crime in half have cut back until they are no longer effective. In other words, when these social enterprises fail, we all lose.

One of the most unfortunate examples of this right now is the newspaper industry. If journalists aren’t a significant force in this country, I fear what those who are wealthy, powerful and selfish will get away with. I also fear that if they are not supervised and protected by a large newspaper that either they will either also become wealthy, powerful and selfish or will be eliminated. And where will we be then?

The solution?

Social Entrepreneurs/Nonprofit Founders: Do your research before you start a company/charity. The way you do business is at least as important as the cause you choose.

Corporations: It will benefit you to give back. (There is too much to say about this to insert it here.) But, give back strategically. Choose a cause or charity that is in line with your mission statement. Either start a foundation to address that cause or select a few charities. Either the company or the corporate foundation must give to those who will really make an impact on that cause.

The Public: Support at least one charity. Find a charity that will make the biggest difference on your cause with what you have to offer as a donation (money, goods or time). Not all charities will fail. Just do a little research so your contribution won’t be for naught. 

Every for-profit company should have a nonprofit and/or cause relationship. The public expects it of them, and it will improve and increase their business. Now, it’s time that companies start looking at those relationships as a business strategy.

Guitars in the Classroom and D'Addario

Why do companies currently start cause/charity relationships?
1.    They use it as a benefit to their employees – making donations to organizations selected by their employees.
2.    They consider it as a marketing initiative – donating product or awarding sponsorships to charities and/or causes that they believe their customers or target customers would like.
3.    They think it will bring them added publicity – choosing any well-known charity to receive proceeds from something.
How could those efforts be more effective?
1.    Cause/charity relationships as an employee benefit: People want to work for companies that make a difference in the world. I would even suggest that future and present employees are more concerned that a company is philanthropic than they are worried about which charities and/or causes the company supports. So, although your employees’ choice can be considered when choosing a charity or cause, it should not be the only factor.

2.    Cause/charity relationships for marketing: Sure, customers are more likely to spend money with a company when they think part of their money will be going toward a charity or cause, but that doesn’t mean companies should only choose charities or causes that “match” the demographic of their customers. For example, let’s say that company A gives 5% of their profits to homeless shelters in San Francisco, and company B doesn’t advertise any philanthropic activity. A potential customer (who has never been to San Francisco or thought about homelessness) is still more likely to buy from company A because they are doing good.

Woodcraft Rangers and Sally Beauty Supply

3.    Cause/charity relationships for public relations: Many companies choose, at the last minute, to add a charity or cause into the mix. Their only consideration is that they don’t want to alienate their customers, so they choose a charity that will be liked by the lowest common denominator. Usually they don’t do anything special for that charity and just throw a few dollars at it. Then, they say, “Look at how great we are! We are donating money to the XYZ Foundation!” They don’t know exactly what the charity does, and instead of finding out, they put a lot of money and effort into getting credit for the donation. They use it to bring in sponsors and celebrities. They write countless press releases about their generous behavior, and then their appalled if no media covers the story.

I hate to break it to them, but tying a charity or cause in is nothing new and, therefore, is not news. What is news? A company going to great lengths to help that charity or cause by creatively raising money for them or getting them some other product or service they need. A journalist can easily spot a company that is going out of its way to help and can also spot someone who just wants their name in the paper.

Who benefits?

The company - Companies that select charities strategically will not only have a lot of PR power for making a significant contribution to charity, they will also greatly improve the success of their business.

The employees – Companies that are maximizing their charitability will gain greater respect from their employees, who will be more likely to stay with the company.

The charity – Just like a for-profit benefits from associations with sensical partnerships, nonprofits also improve their branding when they work with companies that have similar missions.

The community – When we’re all working together to support the causes that we can actually make a difference in, we will be able to really begin to solve these big problems in our communities.