South Yorkshire Funding Advice Bureau Information Sheets Last updated January 2004 All our information is produced in a standard sized typeface, but we can produce it in other formats on request South Yorkshire Funding Advice Bureau The Workstation 15 Paternoster Row Sheffield S1 2BX Tel: 0114 249 4343 email: enquiries@syfab.org.uk Website: www.syfab.org.uk Funding Advice Line 0114 276 5460 Registered Charity No: 1061118 Reg. Company No: 3030641 Getting support from companies Approaching companies for money or other support is still a relatively unknown route for many voluntary and community groups. Often groups don’t know how company giving works or how to approach it. You may need to consider the ethics of taking money, goods or help in kind from commercial enterprises. But for those groups who feel it is okay and who do work with companies there are a lot of success stories. Many companies support good causes and actively choose the ones they want to help. Some larger companies have budgets for spending on community projects in local areas. This is good news for local groups. Attracting money from companies doesn’t mean that you have to change what you do or how you do it. You may just have to ‘sell’ yourselves in a slightly different way. Why companies give to voluntary and community organisations Companies support voluntary groups for a variety of reasons. Often they give to good causes as part of a marketing strategy to generate goodwill, to help to market their goods and services, and to develop a particular image for their company. Companies often seek out causes that are most relevant to their business. This could be a geographical link or a product link. For instance a baby care product company might support a parents’ network. Some companies adopt a particular charity for a period of time. This longterm link allows companies to fend off the hundreds of requests they receive each year and it gives them time to become more actively involved with the organisation. Companies also use support for good causes as a way of developing their staff. Employee volunteering or secondment to a voluntary group is seen as good for staff relations, training and development. Some companies allow staff to chose who they want to raise money for. For local groups personal links may be important when a member of your group works for, or knows someone in, a local company. How much do Companies give? There are no accurate figures on the total value of company giving to the voluntary sector, as the figures are not always reported in company accounts. Most companies do not give substantial amounts of cash. Much of their giving is in the shape of ‘help in kind’ rather than money. The kind of help companies give • Gifts in kind Companies will often give away products, materials or old office equipment. For example, a timber yard might donate wood for an adventure playground and local shops and restaurants may donate goods or a meal as raffle prizes. Firms upgrading their computers sometimes give away their old ones. Some groups get free or subsidised office accommodation, photocopying or printing services from local companies. Companies may give unwanted items to scrap stores and recycling projects. • Advice and support You can sometimes get free specialist advice or services from local firms such as solicitors, accountants or architects. For instance, a solicitor might check over a lease on a property for you or an architect might help with drawing up plans. Groups in South Yorkshire can approach Pro Help (see later for details). • Contacts in the business world The help of senior business people can be very influential in fundraising from others in the local business world. • Employee secondment or volunteering Some companies and statutory agencies will second staff to help local groups, or organise voluntary activities with their staff, including fundraising. This type of arrangement needs managing and can create extra work for your group. • Payroll giving This is also called ‘Give as you Earn’. A company may ‘adopt’ a charity and encourage its employees to give so much a week or month from their pay packet to that charity. The company undertakes the deductions from the payroll. There are tax advantages to giving in this way. • Money There are two main ways to get financial support from companies: Donations: The company donates cash to your group as a ‘good cause’. The company can get tax relief on these donations but gets nothing else in return for its money (though indirectly it may benefit from being seen as a supporter of a ‘good cause’). Sponsorship: Sponsorship differs from a donation in that the company gets - and expects - something in return for its support. This is usually in the form of advertising or endorsement of a company product or service. Common examples of sponsorship include: - Advertising in a charity brochure, annual report or newsletter. Pick those companies whose work fits closest to your cause or your users. For example a supplier of mobility equipment may advertise in a Carers’ newsletter because they are likely to pick up business. - Sponsoring an event, activity or publication. Again, pick the most relevant companies for your event; a sports shop is more likely to sponsor a football competition than a leaflet about how to sue your landlord! If you are seeking sponsorship, you need to be very clear about precisely what you are offering the company in return. It is probably worth drawing up a sponsorship agreement spelling out exactly what has been agreed. This is a business transaction - a contract - and it carries different responsibilities from a donation. If you are registered for VAT, sponsorship counts as trading income for VAT purposes. The company cannot claim tax concessions on a sponsorship deal even if you are a registered charity. How to Approach Companies When you approach companies, it is important to remember that their main concern is to make a profit - not to give to charity. It is therefore very important to do your homework and target companies who you think may be interested in your cause, for example because you know someone there, or they are based in your area, or there is a link between what you do and their product. Don’t send circular letters to a random list of companies. Be aware that companies will want to know what they are getting out of it. Find out who to approach by name - don’t send off a letter addressed ‘Dear Sir/Madam’. Do some telephone research to find out who is responsible for charitable donations - or who can make a decision on spending. This is often the Marketing or Public Relations Department but it can be anyone. Sound out whether it is worth making a formal approach. If you write a letter it needs to be as short and concise as possible - one side of A4 preferably. Most company people are overloaded with paperwork so they need to be able to see what you want and why they should support you at a glance. It is always best to ask for something specific - a sum of money (be realistic!), a product, service or whatever. It may take some time to get a response. Large companies or chains may have to get permission from a head office, or feed the request through a particular committee. If the company has a policy on giving to - or sponsoring - good causes, they may plan well ahead, often a year or more. Be realistic in your expectations. Remember to say thank you if you do get help and acknowledge their support in your annual report or newsletter. Useful Contacts Pro Help (which used to be called the South Yorkshire Professional Firms Group) gives free time and expertise to local community groups and consists of firms of accountants, architects, public relations experts, solicitors, surveyors and other professions. They undertake short assignments in the form of feasibility studies; help with business plans and other technical expertise. Contact: Pro Help 2nd Floor, Albion House Saville Street Sheffield S4 7UD Tel: 0114 201 8983 Fax: 0114 201 8984 www.professionals4free.org.uk This is a new website that helps voluntary and community groups find free technical aid such as legal advice, architectural and building services and IT consultancy. The site has a searchable database of ‘brokers’ who can match you with free professional services. The site can also help your group work out the type of support it needs. Arts and Business Yorkshire Dean Clough Halifax HX3 5AX tel: 01422 367 860 www.AandB.org.uk They provide services for arts organisations including a register of people with business skills willing to serve on management committees. Useful Books The Guide to UK Company Giving by John Smyth (book and CD-ROM), Directory of Social Change, 2002 Finding Company Sponsors for Good Causes by Chris Wells, Directory of Social Change, 2000 Corporate Fundraising edited by Valerie Morton, Charities Aid Foundation, 2002 Yorkshire & Humber Chamber of Commerce Directory 2003/4. This lists the companies that are members of the Chamber in the region. Available from Barnsley Business and Innovation Centre, Innovation way, Wilthorpe, Barnsley, South Yorkshire S75 1JL. Tel: 01226 704050. website: www.yhchambers.org Or you may be able to access a copy in your local library. Directory of Social Change, 24 Stephenson Way, London NW1 2DP Tel: 020 7209 5151 Fax: 020 7391 4804 email: books@dsc.org.uk online: www.dsc.org.uk/charitybooks © SYFAB 2003 All rights reserved. Our information is produced for local community and voluntary groups. No permission is needed for limited reproduction if the Bureau is acknowledged. Large scale reproduction or inclusion in publications for sale must have written permission from the Bureau. The South Yorkshire Funding Advice Bureau welcomes your comments and criticism. You can talk to any member of staff, or contact us by post, phone, fax or email - see the front page for details.