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Budgeting for a Cause

January 16, 2013

cutathonThere are numerous reasons for championing a good cause. It can give your business a heart, provide free press coverage and a tax deduction, generate pride and bragging rights, strengthen your community, and possibly help you to squeak through those pearly gates. However, if you are going to support a charity, it is essential that you do it right. The last thing you want is to have your charitable act look cheap or unprofessional. Here are some tips on evaluating your giving budget if you do decide to go big:

Establish a Budget

First, establish a donation budget, not only in money but also in time. You have to consider that the time spent on supporting a project and the hours donated to a cut-a-thon or a benefit fashion show are unrealized revenue potential. The 40 staff hours dedicated to a cause are non-revenue hours and if they happen to cut into regular business hours as well, then the missing revenues are equivalent to a direct expense. Then set a date that ensures you have the right amount of time, resources and staff availability to pull it off.

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