Do you offer non-profits a discount/deal?

Speaking from an ex-director of a non-profit point of view, with a sociologist's bent ... some (not all) non-profits operate in paradigms of woe-is-me. There can be prevailing notions of "great need" and despair and a certain sense that "the world owes it to us".

For such organizations, there will be a strong mode of asking, asking, asking--for discounts and special gifts and so on. It's part of their prevailing belief systems. And from these you can anticipate "pushing" for deals, etc. And they really expect that they deserve it, just because they are non-profit and have an Important Mission.

So there's that.

On the other hand, all non-profits like to save money. So, it's not unusual that they'd ask. But there's the framework of "entitlement" and there's the framework of, "do you have any discounts or gifts for non-profits? We're not expecting, we're just asking."

And that's where you chime in with the response that corresponds to your personal or company donation policy, whatever that might be, e.g. "I give only to only to organizations whose mission is xyz" or, "I have already donated as much as my budget allows this quarter" or, "Sure, I can give you a $___ donation of my services."

This topic has come up a few times on Biz Talk with, I think, many rich comments. A search in Biz Talk for "donate" will bring up some of them.

You, as a 'company' should have your charity policy set up if you chose to support any non-profits.

I am into promoting/helping non profits that benefit children and animals...that is my personal choice therefore it is my company policy.

I have been known to donate product to auctions, give money and create specific products to help promote said non-profit. I also 'sell' product at below cost to help benefit a cancer organization.

If an organization does not fall into the above catagories I do not even consider them.

You cannot save the world nor should you be expected to give reduced rates to every non-profit.

Pick your non-profits now then when someone asks you can tell them your funding for non-profits have been reached for the year.

I try to give the best pricing I can to non-profits for a few reasons. They can be a great referal sorce. Usually the principals are involved in other businesses and projects that also need my services and non-profits are attempting to give something back to the world they come from with out taking to much back in return. The thing to watch is what kind of discounts to give out. Keep them manageable and don't send your profit margin too low. Art T.

My experience of working with non-profits during the last 17 years is very much in sync with the first half of Leila's post. Non-profits are exceptionally good at perfect execution of "The Ask." They can ask for money and discounts better than perhaps anyone.

My policy for non-profits is fairly simple. If they represent something that is close to my heart, I will take it on at a discounted rate, provided that they agree with my standard terms and conditions. If they ask me to lower my rate beyond what I feel is reasonable, I ask that my company be added to the sponsors list.

I typically do not go into the project thinking that I am going to gain contact benefits as a result. Rather, I am more interested in doing some great work for a worthy cause. If some benefit occurs after the fact, that's fine too.

Working for non-profits can be a feel-good experience if you can give without being taken advantage of.

In my other life I am a nonprofit consultant and therefore have strong roots in Portland's nonprofit community. Our company's value-set is such that we have made a commitment to give back to the community and we do that by giving nonprofits a set discount for our services. Because I tend to know so much about the organizations that approach us, I will, at times, give some additional discounts or work out a trade for an organization whose work I truly support or who I know is in dire financial need.

I also agree that organizations can take advantage of their nonprofit status and plead poverty just for the sake of a discount. I generally don't positively reinforce that behavior by not being willing to bend on offering any additional discounts.

the non-profit relationship can be a difficult one to manage. I agree with what others have said here, and I'll add that what I tend to do is earmark a specific amount of my budget - say, 10% of my earnings for the year - towards either pro-bono projects or direct donations, and I make a specific decision about the types of organizations that I am going to support with this budget.

That way, I'm keeping close watch on my time and profit margin while also making sure that I'm doing something to give back to the communities that have historically supported me. That way, when a non-profit comes to me looking for a discount (and believe me, they're actually TRAINED in many cases to push for a discount/donation of all services), I let them know my policy and give them my fair rates.

I don't give non-profits a discount on my QuickBooks training services just because they are a non profit. They are a business. If they can't operate like the rest of us, then maybe they shouldn't be in business. I will give a volume discount or allowance but so do many businesses.

Using that analogy, perhaps we should all offer our clients a sliding scale based on someone's economic success? I think not.

There have been many comments made about how clients seem to value you more when you value yourself and don't discount yourself.

And yes, I am weary of all the pleading of poverty and schnorring (Yiddish for begging.)

I will however as a former VISTA volunteer donate my time as a fund raising tool for a worthy non profit. Look for my donation of three hours of QuickBooks training in the Stranger's Strangercrombie Auction for FareStart that will appear in the December 6th Stranger or online at http://www.thestranger.com/strangercrombie. I encourage others to do the same if you like what FareStart stands for.

Having a standard policy on discounts is a slippery slope. Customers who know each other will talk about prices even if you've got an NDA that prevents them from doing so. It can get worse with government agencies as well.

A friend of mine had a company that specialized in IT work for government agencies had a "standard volume discount" that he decided not to give to a particular agency that was very hard to deal with. Prices got compared, and he got sued.

Back to non-profits. I don't see a reason to give a non-profit a discount unless you personally believe in what they're doing. I used to give discounts to non-profits, and realized how painful it was.

Non-profits just aren't as easy to do business with as for-profit companies. Their funding cycles are based off of grants, so any work they need outside of a grant is like pulling teeth. Forget about being proactive, they're always emergency based.

The only situations I've found it worked out well to give discounts to non-profits was right before a funding cycle, because then that gave me leverage to redesign their infrastructure, and have the cost of that redesign put into their grant proposal. Don't confuse discounts to non-profits with charity.

I believe as Keith lays out, that non-profits ought to operate as businesses--and I say that from intimate experience with those who act as a business and with those who act as petulant, spoiled, damaged entities.

I heartily recommend an examination of the viability of a non-profit before making a gift of any significant size. And, to give consideration to the tone or attitude of the folks you would be dealing with--as always, I advocate making the choice for the relationship that will bring you joy.

Some non-profits are strong and a joy to work with. Some, suck. Sorry, it's true. Of course that can be said about any type of organization, but (unfortunately) I've found that many non-profits tend to whine; it's part of some over-arching notions that not-for-profit somehow equals "struggle".

Anyway. Sorry. I have very strong opinions about this (obviously :-) And low tolerance for any one or anything that milks a "woe-is-me" attitude.

Michael says, "don't confuse discounts to non-profits with charity". I think that sometimes "tough love" is the right way.

Well said Leila. I too am an ex-administrator at a social service non-profit for 12 years. It's a business like anything else and needs to pay for your services as any business transaction. The agency I worked for even purchased prime land and oil to give them a framework for big business. They lease that land for millions per year and make millions from oil. Business is business, is what I say! Go get 'em.

I have donated services to local non-profits run by people I know. Especially if it is a kind of site I don't have in my portfolio.
But I don't play the discount game, and I do have a "pain-in-the-rear" fee for those customers that are difficult. My prices are my prices, and if I want to quote $1 to one person, and $100 to someone different for the same job, I will, and darned if they talk about it - I don't care.
My clients either love me or hate me, depending on how much truth they want to hear. I have zero people skills, can you tell?

I have worked with many non-profits and have learned that discounted rates result in discounted services. Many of the organizations I've been in contact with have no real idea of the value of good PR and most of them subscribe to the paradigm that non-profits should receive services and goods at bargain basement rates simply because they are doing good work for others. In my book, I'm doing good work, too and I don't ask for discounts when I require the services of others. I think it's time for non-profits to be brought up to speed in terms of what they should pay for professional services. Those that operate on old paradigms bordering on paucity principles and fear usually don't believe enough in the value of what they have to offer and generally they don't make good clients.

I work with many non-profits and I give them a discount. This is not written in stone though. Depending on the service required and the non-profit group I may charge full price. I don't think that giving discounts means that you're over charging your other clients either. I work with a lot of people that do a lot of good and I think of it as a donation to a good cause.

I often get calls from non-profits seeking discounts. My policy is that I don't discount to businesses of any type (even home-based businesses) but I do discount to persons age 60+ for personal instruction in their homes.

So, I currently run a start-up nonprofit. As someone who also works in the "for profit" world as a promotional marketing manager, I can see both sides.

Here's my take on nonprofit discounts.

1. They really can help a nonprofit and a business, because, frankly, nonprofits have to do more with less. -It brings your services to a level they can work with.
2. Nonprofits are not equal. You might consider making an official policy on how "deep" a discount is, depending on the yearly budget of a nonprofit. Those under $50,000 a year are X price, those over $50,000 are Y price. -Though, really, your prices should be just as high for your for-profit customers when a nonprofit's yearly budget is above $250,000 a year (to me, this number signifies "we're a stable, real organization that has infrastructure").
3. Ask to be listed as an event sponsor at their next fundraising event or on their website. They'd gladly give you advertising for a break on fees.
4. Price for value, not to be charitable. For example, I have an email marketing service I use and love, Emma, and have referred MANY clients to them over the two years I've used them. My non-profit discount is $6 a month--so I pay $24 a month instead of $30. Not a huge discount, but it adds up and I appreciate it. In turn, I share the Emma love whenever somebody asks me, "What email service should I go with, Sarah?" So far, I've thrown more than 20 clients their way.
   
5. Consider, instead of giving a discount, having nonprofits apply for a year of free service. Create a couple standards, must be a 501c3, must help kids, must be in Washington State, etc. and let them apply. Pick your winners and thank all the applicants.