Why I Won't Participate in the ALS Ice Bucket Challenge

I won't be giving money to ALS or participate in the Ice Bucket Challenge. Not because I think that the ALS society is not a worthwhile charity. It is just that there are many other charities for which I have a greater affinity.

I have been watching the ALS Ice Bucket Challenge with interest. Everyone from former Presidents to your next door neighbour are tossing a bucket of iced water over their head and then challenging someone else to do the same. It is one of the most successful campaigns for a charity ever, and the ALS Society is getting money faster than they can handle. As people take the challenge and give money to this organization (and possibly don't give to another disease group) are they doing so because they understand the statistics around the disease, the association and its administrative & fundraising expense to program expense ratio? Or are they just donating because they've been challenged and, well, this is a fun thing?

Generally people give to specific charities for a few reasons.

    They have been touched by a disease personally;
    They are supporting someone else who they know who is raising funds -- someone who is involved in an event or perhaps someone's spouse or parent died and it is a "in lieu of flowers donation;
    They wish to support the marginalized or poor, either in this country or another;
    They believe an association does "good works" -- a hospital, a children's organization, etc.

True philanthropy is not getting on a band wagon, through peer pressure or "ha-ha" this is fun, who cares what it is raising funds for.

Now don't get me wrong, as I do believe you can have a fun event and raise money at the same time. But for me, I believe a lot has been lost in translation with the Ice Bucket Challenge.

Whenever you give money to a cause, you should always ask the question "Why?" And it shouldn't be because everyone else is doing it. The "why" usually consists of some of the points noted above.

All other charities are now looking at what they can do to make things go viral and raise the type of money that the ALS society is. So I'm sure we will see other similar fundraising activities in the future. It is somewhat like when one hospital started a lottery. Now we have more charitable lotteries than you can count on your appendages.

I am not dissing the ALS Society. Good for them for raising the amount of money that they are, and hopefully many will benefit.

But the bandwagon effect is not sustainable, and I believe that most people have not even considered how many people are affected by this disease vs. others (in the US is about 30K people are living with ALS according to recent statistics by the CDC) or what the admin/fundraising expense to program expense ratio is for ALS (it is good but a little higher than most associations with only 72% of what is raised going to research and other programs).

There are approximately 300K sufferers of MS in the US; 800K suffer strokes; 1 million suffer from Parkinson's; 5 million have Alzheimer's; and so on. The number for ALS is relatively small in comparison, which I know means nothing if you or a relative/friend are afflicted with the disease.

When giving to charity, for a disease group or to some other charity, ensure that it is meaningful to you. Don't just do it because everyone else is. And make sure that you give the same or greater amount every year.

I doubt very much that after this blip in the ALS fundraising that they will experience the same generosity in the future. Because most of the people who have done the Ice Bucket Challenge probably know relatively little about the disease and only did it because of peer pressure.

This is gamesmanship not philanthropy and it is not something I would participate in, or I think is meaningful in the long run.

The One Thing To Do To Make Money And Do Social Good

I keep on saying it. We're living in fast times. Radical innovation and progress is happening unlike anything we've seen before in human history and it's impacting the philanthropic sector. Major donors are no longer looking at nonprofits as the only game in town. Start-up companies are melding social good with making money.

So, let's say you want to make money and do good in your part of the world. There's a way to do it. It'll give you a good head start with regard to giving you a "seal of approval."

The Basics of a B Corporation

B Corps are for-profit businesses that are certified by the B Lab. At present there are over 1,400 Certified B Corps in 42 countries and over 120 industries. They seek to "redefine success in business."

These B Corps have joined a growing movement to go through a rigorous review process around performance, accountability and transparency. Additionally, these businesses have committed themselves to the following:

    B Corps commit to creating higher quality jobs.
    They commit to improve the quality of life in their communities.
    B Corps are seeking to provide not only value for their shareholders, but also for the greater world at large.

While B Corps recognize that there is a need for charitable organizations, they are also aware that business can bring a lot to bear for social change. For-profit businesses understand market-based and scalable solutions. Some B Corps with this certification include Etsy, iContact and Better World Books.

Why Become a B Corporation

The first reason is simple: money. By becoming a certified B Corp, businesses can demonstrate they have gone through a rigorous vetting process. They are able to show:

    That they can achieve social impact.
    Have the management and operational infrastructure.
    Can command higher valuations when sold, or were they to go public, because they are certified.

Another reason to consider this type of certification is because it provides the public with proof. It tells your customers that you actually mean what you're saying. According to Cone Communications, "90% of Americans say that companies must not only say a product or service is beneficial, but they need to prove it."

How to Become a B Corp

By going to the B Lab website, you'll find everything you need. Essentially, you have to do the following:

    Complete the B Impact Assessment and earn a reviewed minimum score of 80 out of 200 points.
    Determine the path for your corporate structure and state of incorporation.
    Sign the B Corp Declaration of Interdependence and Term Sheet.

I'm not saying that becoming a B Corp makes sense for everyone. However, if you're looking for a competitive advantage and want to make money as well as do some social good, this may be a great option for you.

Happiness Through Volunteerism & Charitable Giving

Most folks define happiness by how they feel and if they are comfortable and free from want. Of course, this can be a difficult reality to chase. In fact, it is nearly impossible to attain that kind of happiness on a permanent basis unless you have no more wants. If you are at the upper echelon of enlightenment I commend you, but also would challenge you to live in the here and now and experience life to its fullest.

If you have reached a place where you are totally free from want then why not help others who are not? And if you have done nothing your entire life but strive to make yourself happy then why not find some happiness in giving back or volunteering.

Did you know that folks rank charitable giving amongst the most fulfilling acts of their entire life? Perhaps this speaks to the genetic encoding for philanthropy and empathy that all humans share? Humans are social animals and although they engage much of their time in primate politics, there is a good side and good natured heart in there, use it.

So, why not share some happiness with others in their time of need. The Karma will do you good and you'll discover a whole new reality and way to happiness in your life. Why not go with nature, do what comes natural and enjoy happiness through volunteerism and charitable giving. Get out the phone book and look under non-profit groups in your area, call a friend or two see if they are game also. Then call up and volunteer, try it out; you just might like it. Happiness awaits.

Charitable Giving Offers Likability in Your Marketing Strategy

During the holidays, we are bombarded by dozens of pleas for charitable giving. Especially during a down economy, nonprofits and charitable causes are typically suffering from low response because consumers tend to give when they are not preoccupied with how to pay their mortgages.

But what if you are a small business owner? Whether it is the holidays or year-round, does your small business give to charity?

I think we can assume that most people and small businesses give charitably out of genuine concern and care. People like to associate themselves with businesses that support meaningful projects. It's makes us feel good. Thus, the marketing benefit is that this attaches a likability factor to your business. And, yes, consumers are looking for reasons to like you (because they typically don't like your prices).

Big companies have long employed charitable giving into their strategy of getting customers to know, like and trust them. McDonald's has a long history with Ronald McDonald House Charities and Subway is affiliated with the American Heart Association. As a father of an adopted daughter, I love Wendy's because of the Dave Thomas Foundation for Adoption (OK, so it's their Frosty, too).

How will your business share your success to impact your community and the world? Recognize the importance of rallying your team behind a passion greater than your organization itself. Differentiate your organization by focusing on selfless acts of community service.

Here are a few of the most common ways to participate philanthropically:

PERIODIC PERCENTAGE GIVER - Give a percentage of either revenue or profits for a specific time period. "From Memorial Day until Labor Day, we will give 5% of all sales to our local school."

PERPETUAL GIVER - Give all year round ("Every month we give 1% of our sales to the local food bank"). Or pledge a specific dollar amount for each time there is a specific transaction. A colleague offers a marketing newsletter and every time someone signs up for her free marketing tips, she will donate $1 to charity. In addition to local charities, our marketing firm gives quarterly to an orphanage in Benin, West Africa.

PARTICIPATION GIVER - Help sponsor a local event, like a charitable 5K. Provide the food, the T-shirts, or the water bottles for the runners. Put together a baseball team that raises money for a specific charity ("For every home run, we will donate $100″). This typically gets you and your employees much more involved than simply writing a check.

SOCIAL CHANGE GIVER - You may wish to engage in various cause marketing practices that support your company's values about social change. Warning: don't try "going green" as a limited strategy just to appeal to a certain demographic. It will never work. Authenticity is critical for today's cynical consumers. Participate generously in your community and you will enjoy the reward. I know one salsa company that employs developmentally disabled persons to handle all their packaging prior to shipping. It's a win-win for both sides and speaks volumes about the heart of the company's leadership.

MIDDLE-MAN GIVER - Perhaps your most effective role could be to leverage your business' heavy traffic to impact a local charity by acting as a drop-off resource for donations. Each of a national tire chain's local stores acts as a drop-off for customers to bring Toys for Tots. Canned food drives are equally common and engage your customers into your charitable focus. (It is best if you can ensure the participants that you also give to this drive.) Grocery stores have long presented consumers the choice to donate money to some charity at check-out.

There are some potential problems with your prospects' perceptions. Cynical consumers are leery of greedy businesses somehow seeming charitable just because it is the holidays or they are looking for some tax deduction. Such "generosity" will inspire no one and your customers will see right through it (authenticity speaks volumes!).

Give out of a generous spirit and you will receive the proper recognition as a secondary benefit (the first benefit comes from giving and helping others). Does your charitable participation connect with your customers' priorities on social initiatives? While some customers will simply ignore your cause and choose price first, many consumers will work with a company doing social good over one that isn't every time. And yes, they will likely even pay a premium because the cause is that important to them.

Sure, there are those who give for exploitation or egotistical reasons. There's a risk in mixing marketing and philanthropy. Pompous promotion and charity rarely mix. But If you are genuine in your concern for the charities or causes that you support, I don't think you need to worry about your customers thinking you are arrogantly bragging. We live in a generous nation. Perhaps we are not generous enough, but still, we are by-and-large a giving culture when we see real needs. I believe when you act responsibly with what you have received, your customers and prospective customers will appreciate your willingness to use your resources to benefit others.