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. 

The first step in starting a relationship with a cause or charity is choosing the right one. What you probably want out of it is increased sales. So, the first question is, “Do you have enough potential customers out there, or do you need to create them?” If you need to create them, what charities are already creating customers for you? I, for example, run a nonprofit that creates musicians by putting musical instruments into music education programs. For a while, we were partnered up with a music instrument retailer, and now we are partnered up with a musical instrument manufacturer. They help to create more customers for themselves by supporting the charity I run, a win-win situation.

Once you have selected a charity that will help your business, think about how your company can make the biggest difference for that charity/cause, find a way to fit it into your company’s current operations, using your company’s assets (people, products, machines, operations, etc.) to benefit the charity/cause. Then, let your customers know that you are helping that charity or cause, and give them ways to also get involved. It will strengthen the relationship you have with your customers.

When you are ready to publicize your relationship and your efforts to help the cause or charity, you can choose to communicate the size of your contribution or the creative approach to your philanthropic effort. But, neither will get any attention unless they are impressive. The public expects you to help others already. In order to get notice from the media, you have to turn heads.

Who benefits?

The company – more customers, successful public relations, improved community relationships

The customer – they get to help others with the money they would have spent anyway.

The charity/cause – not only do they get the money or product, they gain you and your customers as advocates, and they get increased publicity, too.