Creating a Business Model that Gives Back

Flowers have the power to beautify our living spaces and make us feel good, but what if they could also make the world a better place? There are plenty of ways for floral businesses to give back: donations, volunteering, raising awareness, or sponsorships. Thankfully, these initiatives don’t have to be expensive, time-consuming, or complicated, and it’s never too late to start!

Whether you’re a wedding and event florist passionate about animals, a local flower shop owner committed to supporting neighbors in need, or a flower farmer dedicated to environmental issues, this article seeks to provide you with a helpful starting point and hopefully some inspiration, too.

In addition to helping your community flourish, corporate giving can be a business-savvy decision, too. A recent Harvard Business School study found that most buyers prefer to purchase from brands and companies that give back, especially when they understand the impact it has (more on that in a minute). But while business donations can boost public perception of your company and foster brand loyalty and engagement among customers, giving back should never be viewed as merely a marketing tactic. Instead, it’s important to give thoughtfully and authentically to causes that you’re passionate about. When charitable giving aligns with a company’s overall mission, it makes the world a better place, inspires others, and, ultimately, turns profit into purpose.

Finding a Non-Profit Organization

You may already know about a few great local charities, or perhaps you regularly donate to a couple of national organizations. If not, no problem! There are a lot of great and deserving organizations that would benefit from your support. Be sure to get educated about local non-profits (a simple online search will get you started) and research non-profits dedicated to any causes you’re passionate about. GuideStar and Great Non-Profits are two organizations that can provide you with more information and lists of charities.

When considering a charity, it’s also wise to ask what percentage of donations goes to administrative expenses and fundraising. The best organizations work to keep overhead low so that the vast majority (ideally 80% or more) of all donations go directly to the mission.

Types of Donations

There are a few different models for donating directly from your business. Here are some of the most popular:

Donate a Percentage of All Profits

One popular and seemingly simple model is to donate a portion of all profits to charity. Some businesses choose to leave the exact percentage vague and state something to the effect of “a portion of all profits donated to Boys and Girls Club,” whereas others publicize a more specific amount, such as “20% of all profits donated to Doctors Without Borders.”

However, a challenge with donating a portion of the profits is there isn’t much transparency or clarity to the consumer. While any corporate giving structure is admirable, this model doesn’t convey the impact of a purchase to the consumer; a buyer simply isn’t aware of the profit margin. This model can also be more complicated from an accounting perspective.

Donate a Percentage of Sales

Giving a percentage of total sales, by contrast, provides far more clarity to the consumer about the impact of their purchase. If, for example, a florist donates 10% of all sales to ABC non-profit, a buyer understands that the charity will receive $6 from their $60 floral arrangement. Buyers appreciate this transparency, and business owners can go the extra mile by working with the non-profit organization to understand the impact of the total donations. For example, if a total of $840 is donated to a soup kitchen each month and the non-profit shares that the average meal costs them $1.20, the business can publicize that 700 people were fed through their donations.

The downside, of course, to donating a percentage of all sales is that it’s not a sustainable model for many businesses. This is especially true if profit margins are thin to begin with. Some companies opt to promote these types of donations for a specific event or for a short period of time.

Donate A Set Dollar Amount Per Sale

This may be the easiest way to implement a monetary charitable donation, especially for specific products. As an example, farmer-florists can publicize that “$5 of every $30 mason jar arrangement is donated to St. Jude Children’s Hospital,” or a floral designer may wish to advertise that “$10 of every $80 workshop registration will go to Feeding America”. This model is both transparent to the consumer while providing business owners some control over which goods and services are (and are not) eligible.

In-Kind Donations

In-kind donations refer to any non-monetary donation to a non-profit, including goods, services, or time. In the floral world, this might include bringing flowers to a nearby senior center or hospital, donating arrangements to the local library’s fundraising dinner, or volunteering a bouquet-making workshop at a women’s shelter.

If you have a brick-and-mortar location, you may also wish to consider signing up as a collection site for organizations like Toys for Tots or a nearby shelter in need of gently used coats and winter gear.

One important thing to note with in-kind donations is that they’re not always tax-deductible. Be sure to consult your tax advisor and the non-profit organization’s director to learn more about your options.

Volunteering

Giving time can be just as important and valuable as giving money, and there are plenty of ways to help. Plus, volunteering as a team with your employees can be a fun and fulfilling team-building experience. As a company, you can set a monthly goal for the number of total hours volunteered (for example, an average of 5 or 10 hours per employee each month) and reward staff with a local lunch when the goal is met. Be sure to wear your company shirts while volunteering and share your company’s goals on social media to create a buzz and inspire others to donate their time, too!

When it comes to volunteering, the options are endless. There are plenty of flower-related options, including setting up flowers on veterans' gravesites each Memorial Day, or you could choose something focused on the local community, like stocking the shelves at a nearby food pantry.

When it comes to volunteering, consider your skills, interests, and community needs. Whether you’re a pet-whisperer and love walking local shelter dogs, a social media pro (lots of small charities need help with this!), or bilingual and willing to translate for refugees in need of assistance, there are plenty of opportunities.

Volunteermatch.org is a great place to start and find volunteer work nearby.

Sponsorships

Sponsoring community events, such as “First Fridays,” a charitable 5K run, or a town festival, can be a great way to promote your business while helping your community flourish! The price can vary considerably, but many local events offer tiered structures starting around $100-200. Depending on the nature of the event and sponsorship type, businesses may also be given the opportunity to set up a table or booth. This is a great way to showcase some of your work, pass out flyers or freebies, and advertise upcoming events or workshops. For example, event florists may wish to show off a beautiful centerpiece, flower farmers can share free sunflower seed packets with kids, and floral designers can pass out flyers with discounts for upcoming workshops. While the upfront cost of setting up an attractive booth can be costly (budget a couple hundred dollars each for a custom tablecloth and signage, plus decor), it’s well worth the investment.

Youth sports teams can provide another great way to give back locally for a relatively low fee. Many intramural teams offer sponsorships, often starting around $150-300, and often name the sponsor’s business on the back of each team member’s jersey. Many leagues also promote the businesses on their website and social media and include other perks that can lead to a great return on investment!

Raising Awareness

Last but not least, there are plenty of ways to give back that don’t involve giving money, goods, or services. You can use your business’s platform to lift up deserving non-profit organizations by sharing them on social media or via e-newsletter. If you have a brick-and-mortar location, be sure to offer a “community board” where nearby charities can post their information. You can also set up a fundraiser at check-out or via social media in conjunction with a partnering charity.

Prior to making your first donation, there are a couple of important things to consider:

Connect and Work Together

Before making any corporate donation—especially a recurring one—it’s helpful to first talk to a member of their team. If it’s a smaller organization, the best point of contact may be the Executive Director. In contrast, mid-size or larger organizations may have a Director of Development or a similar role. This person can guide you in the best way to donate (e.g., through the website or via paper check) and answer any questions you may have. They may also provide you with information about your corporate donation being tax deductible, if applicable.

Additionally, if you plan to ever use their information (including their name and logo) in any of your marketing, it’s always best to have express permission to do so. Co-branding with their organization is a great way to reach potential new customers and share your company’s mission.

If your business is planning to donate a percentage of sales or profits, it may also be appropriate to share your monthly accounting statements in the interest of accountability and transparency. This way, the organization can independently verify that the advertised donation amount matches what they’re receiving. Some businesses may wish to have the receiver sign a non-disclosure agreement regarding the financial information being shared. When in doubt, it’s always best to consult your attorney or adviser.

Share the Impact

Don’t be shy about sharing the impact of your donations or volunteering—it may inspire others to give back, too! Sharing the impact of donations is especially important if you’re donating a percentage of all profits or sales. Buyers will appreciate the transparency and like to know how far their purchases went (for example, “donations from sunflower sales in August provided 14 school supply-filled backpacks for nearby children in need”) in a monthly e-newsletter or on social media.

We hope this information provided you with some insight, encouragement, and helpful information to give back to the community through your business. Those of us in the floral industry work hard to make the world more beautiful, and we have the power to make it a better one, too.