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Home > Cover Story > The New Face of Philanthropy

The New Face of Philanthropy
Jul/Aug 2005, By Rebecca Saltman

Tsunami relief. World slavery. Kids with terminal heart disease. Abused animals. Poverty. The list seems endless. The need is nearly overwhelming. Government funding is down.

The New Face of Philanthropy
What the next generation of advocates are doing to make a difference.


Philanthropy on the other hand is on the rise, in a group of young and influential individuals. With successful careers and a need to share success by giving back to the community, many have good intentions but little time to get involved in every cause that touches their heart.

Boulder native/actress Jessica Biel, is the poster child for the next generation of philanthropists, meeting challenges head-on, with passion, energy and power. Biel’s success with her latest movie role, Abigail the Vampire Hunter in Blade:Trinity, and previous lead roles such as 7th Heaven, afforded her many opportunities to make a difference.

Biel is successful and talented and like the many in her demographic, who is finding a new way to “Make The Difference” in the world. Biel’s efforts specifically are helping create a business that makes it easy for people to learn about the thousands of “needs” of nonprofits and to give directly to help fund those needs. She is becoming involved by devising a way that makes it easy for businesses to expand their philanthropic efforts.

Leveraging the power of celebrities, the media and the Internet, Jessica’s latest “hit” is a socially responsible business venture embarked upon with her father, business coach, Jon Biel, and two other Denver-area Internet entrepreneurs – Kent McBride and co-founder of Blacktie-Colorado, Kenton Kuhn.

Their business is Make The Difference Network (www.MTDN.net) a Web portal designed as a National Wish List that will serve as the connecting point between thousands of nonprofits, with “wishes” that need funding, and millions of people who want to experience the magic of giving by making a direct donation in support of those “Wishes.”This process allows directto- the-source, grassroots giving, made easy by the Web. The MTDN strategy is to leverage the technical power of the Web with the marketing power of celebrity and media partners, to attract a high volume of visitors who are interested in “giving” directly to “Wishes” that touch their hearts.

The popular young actor’s journey of becoming a social entrepreneur began with a heart-rendering, but moving experience of supporting a young fan (suffering from muscular dystrophy) on her own fan club web site. The results of creating a Web page informing her Web site visitors that she intended to help this young man not only provided some much needed support for a struggling family, but also opened Biel’s eyes to the personal rewards of giving and the power of celebrity. Although the young fan eventually succumbed to the ravages of his disease, this experience prompted Jessica The New Face of Philanthropy What the next generation of advocates are doing to make a difference. and her father (who designed her Web site) to investigate other ways of helping. The result was Make The Difference Network.

Celebrities using MTDN to Make The Difference for nonprofits.
• Tom Martino
• Jake Plummer
• “Coach Frank” Traditi
• CJ Hayden
• Steven Van Yoder
• Shannon Elizabeth
• John Lynch
• Nick and Helen Foredster

Biel has a vision of how the next generation will embrace philanthropy. “Hopefully, they will have more opportunities like Make The Difference Network where it is easy to give and become involved,” she says. “When young people see ways to help that are more accessible, they get excited and it’s easier to make a difference when you are excited about a cause.”

A unique characteristic of MTDN’s approach is to provide a forum for other celebrities to support their favorite charities and causes and, through MTDN, provide them with unique fundraising and marketing capabilities. The involvement of these “Celebrities Who Care” will, in turn, bring additional exposure and traffic to the MTDN Web site. MTDN will involve dozens of celebrities, including actors, media personalities, professional athletes, authors and business leaders. Involvement of these famous personalities will bring additional attention, exposure and support to causes they care deeply about.

How does celebrity status help MTDN? “A key audience for Make The Difference Network is young people,” says Biel.“I have a large following of young fan – it would be great if I could influence, and make it easy for more young people to become involved in their communities.” Philanthropy usually starts with a personal inspiration. “I had this rewarding experience supporting a young 7th Heaven fan who suffered from MS,” recalls Biel. “That experience made me realize the impact I could have on people’s lives. I felt excited and good about helping, and it motivated me to use my celebrity status to better the lives of others and to give something back to the world.”

A big concern for Biel that has prompted many facets to MTDN is the concern people have about sending their money for good causes, and wondering whether it will be used for the purpose they intended. Biel believes many times this is a hindrance that inhibits giving.

Biel is encouraging other young celebrities to participate in philanthropy by inviting them to participate in MTDN. But to Biel, it’s not about being a celebrity. “I hope MTDN becomes very popular and people take advantage of its simplicity and how ‘hands on’ it is”, says Biel.“When we get a lot of people going to the site and really making an impact, they will begin to feel good about it and, hopefully, that will help create what we like to call an epidemic of giving.”

A local celebrity artist is participating in Make the Difference Network by creating memorable pieces to be sold on MTDN with proceeds going to the network. Cyndy Everett, known for her line at Saks Fith Avenue and Neiman Marcus, was honored to create several signature items for Make the Difference Network. Their cause is one of giving back – and passing on opportunities to many people in many ways.
The necklaces and key chains are silver; the larger necklace is designed with 24 Kt. yellow gold overlay. This line is available for purchase at www.MTDN.net


Cause Inspired Marketing
The New Business Philanthropy


Long-time consumer advocate Tom Martino is a media celebrity who will be working in partnership with MTDN to create the ability for his listening audience to participate in helping consumers in need. According to Tom,“I am working with MTDN to create a partnership where I can expand the ability of my radio show and Troubleshooter Foundation to help more people in need.” And Denver Bronco quarterback Jake Plummer plans to utilize MTDN to raise additional funds for his annual Christmas Shopping Spree for needy kids, who otherwise wouldn’t have a Christmas.

Biel herself uses MTDN to support causes she feels passionately about. She currently sponsors the following organizations in the Make The Difference Network:
  • The American Pediatric Heart Fund, which raises money to pay for the medical care for uninsured or underinsured kids with heart problems.
  • Free The Slaves, which helps expose the tragic problem of 27,000,000 people being held in slavery around the world.
  • The Global Initiative to Advance Entrepreneurship (GIVE), which provides long-term economic recovery solutions for tsunami-torn Indonesia.
Far from being just a celebrity site, MTDN also gives businesses a new way to become involved in philanthropy and support causes by providing tools to create powerful, mutually beneficial relationships with the nonprofits they care about. But is it really important for businesses to be involved in business philanthropy?

It is if you want to be competitive in today’s marketplace! Not just because it’s the “right” thing to do, but because it brings you more of everything.

n often heard business maxim is, “if you want to be successful, watch what successful people do!” The philanthropic approach of two very different, but very successful business leaders, is a good example of how diverse corporate giving is. One is the founder of the world’s most successful real estate network and the other is owner of the plumbing and heating company voted the best A/C & heating company in Boulder County.

Denver-based, international real-estate mogul, Dave Liniger, founder of RE/MAX, and Boulder native and owner of Boulder County’s Precision Plumbing, Tom Robichaud, know something about creating successful organizations that we should all consider. They’ve figured out that one of the keys to business success is to do great things for their communities.

While RE/MAX Associates have raised more than $45.5 million since 1992 for the Children’s Miracle Network, and co-sponsor all of the Susan B. Komen Breast Cancer Foundation “Race for the Cure” events, Precision Plumbing recently announced, “We may be crazy, but this year we are going to give back to our community by donating $1,000 a month to local nonprofits.” His actions have exponentially raised his visibility and credibility in Boulder.

To create competitive advantage in their marketplace, these two socially conscious business leaders are applying a powerful marketing strategy MTDN’s Kent McBride “calls cause-inspired marketing.”

“Cause-Inspired Marketing means finding some worthy cause that you and your company feel passionately about, that inspires you to unleash the full power of your company’s resources to make a major difference with that cause. Both the cause and your business benefit. Great things really only happen when we are inspired to do them,” says McBride.

Cause-inspired marketing is also about showing your leadership by taking inspired action and creating ways to provide that nonprofit, and their cause, with the power of employees, customers, vendors, board, advisors, friends, press contacts and brainpower. The return on investment will be measured in both tangible and intangible ways; both on a personal and a business level.

Recent findings by Cone Research reveal that:
  • 80 percent of consumers say, all things being equal, they are more likely to spend their dollars with companies that support charitable causes.
  • 72 percent of Americans want to work for companies that support charitable causes.
  • 92 percent of Americans think that it is important for companies to make charitable contributions or donate products and/or services to nonprofit organizations in their community.
Still not sure how your company or organization might create powerful, mutually beneficial partnerships with worthy nonprofits? Consider these innovative, real-world examples of cause-inspired giving that have greatly benefited both the community and the participating businesses:
  • Coors Brewing Co. brought attention to the women’s literacy problem in America, by starting a five-year program called,“Literacy: Pass It On,” and donated nearly $6 million to more than 250 local and national literacy organizations.
  • Karen Bernardi of Boulder’s Bernardi Group, the No. 1 Coldwell Banker realtor in the Mountain States region, has decided to use Make The Difference Network as part of her on-going support of various charities. On her belief on giving, Bernardi says, “I feel lucky every day (to have had the success she has had). I really don’t do it for my business, it’s just the right thing to do! Yet, I know I have done business because of my giving.”
  • But cause-inspired marketing is not just for large organizations. Rebecca and Doug Kirchdorfer, coowners of Downing Street Garage, give back to the community by servicing vehicles for nonprofit organizations such as Habitat for Humanity and the Brent Eley Foundation for free labor. In turn, they have been awarded three prestigious ethics awards including the international BBB Torch Award for marketplace ethics.
Who wins from all this Cause- Inspired Marketing?

Everybody wins: cause-inspired marketing creates a great win/win/win/win situation. Nonprofits win because they get additional visibility and contributions. The donors win because they are gratified while advancing their cause. The business wins by increasing its sphere of influence, gaining more clients and credibility and the community wins by developing a stronger business and nonprofit base.
According to MTDN.net CEO, Jon Biel, “Since we’ve just been preparing for our national launch and have only told a few people about MTDN.net, we’ve already had several nonprofit members receive donations. Free The Slaves, Animal Avengers, The American Pediatric Heart Fund and Puppies Behind Bars have started getting donations from people who somehow found us, discovered a wish that touched their heart and made a direct donation. It’s wonderful.”

But if cause-inspired marketing is so profitable and powerful for both the nonprofit and the business, why then isn’t every nonprofit and every business participating?
It’s even important to teenagers.
More than 60% of the teens surveyed a year ago by youth marketing firm Alloy Inc. said they are more likely to buy brands that support charitable causes. Their loyalties may also have a big effect on what their parents purchase. “Kids used to influence where you'd go to dinner, but now they influence what kind of car you buy,” says Samantha Skey, a senior vice-president at Alloy.

Business Week, November 22, 2004.

Perhaps entry into these relationships might seem daunting and difficult, a distraction from the focus of your business. In a recent speech, RE/MAX’s Dave Liniger noted that as an entrepreneur, you are usually in survival mode and not focused yet on giving back to your community, and freely admitted it took him some time to understand this valuable lesson.

Once a company makes the decision to embark on a cause-inspired journey, where can it go for assistance?

There are several organizations that bring causeinspired giving to the forefront of the business, nonprofit and public sectors. Denver Mayor John Hickenlooper has established the “Office of Strategic Partnership” headed by Mike Roque to help nonprofits and the City of Denver find innovative ways to utilize resources better. Companies such as A Foot in the Door Productions work directly with nonprofits, businesses and government agencies to create causeinspired coalitions. The Magellan Center, a nonprofit, nonpartisan think-tank and resource center, providing practical information on all aspects of entrepreneurship, has developed a social entrepreneurship project to help nonprofits self-fund.

There are many businesses in Colorado and in the rest of the country that give in a cause-inspired fashion. According to the Giving USA foundation, of the more than 240 billion dollars contributed to nonprofit organizations in 2003, corporations gave $13.4 billion, about 5.6 percent of the total amount contributed.

Businesses can do more. They are the key to igniting a “giving epidemic,” where business owners, managers and employees are all inspired to find ways to make the difference in their local community and in their business. Are you inspired?

Rebecca Saltman is the president of A Foot in the Door Productions and senior fellow of Social Entrepreneurship at the Magellan Center.




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