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Small businesses find value in charitable giving








Mariah Tauger, Los Angeles Times / December 1, 2010

Jim Roman, the owner of AJ’s B.B.Q. in East Los Angeles, has given away hundreds of meals to support neighborhood charities and school clubs.


Small businesses find value in charitable giving

Goodwill from donating money or products not only helps communities where firms are based but also can lead to higher revenue as word of the support spreads.



Jim Roman stands with his wife Elda and daughter Monica outside their East Los Angeles restaurant, AJ's B.B.Q. (Mariah Tauger / Los Angeles Times)

Charitable giving by small businesses
By Cyndia Zwahlen

December 5, 2010, 9:22 p.m.
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Small businesses may be struggling these days, but many have not given up on supporting local charities.

In East Los Angeles, restaurant owner Jim Roman said he has given away hundreds of meals of barbecued ribs and chicken to support neighborhood charities and school clubs in the 18 months his small eatery has been open, even though he is barely breaking even.

On Saturday, for example, he'll be feeding 40 volunteers who will be helping to pack and give away bags of food for families invited to a holiday event organized by Volunteers of East Los Angeles.

"As a new business, people tell me, 'You are crazy. You are insane. Why are you doing it? You are not making any money,' " said Roman, a former trucker who works at his AJ's B.B.Q. Pit seven days a week.





"But you know what, it's always harder to give when you can't afford to, but it's the right thing to do and it's opened a lot of doors for us."

Giving can be part of marketing.

"Small business shouldn't be shy about thinking of their giving as a community investment with possible returns in goodwill and new business," said Susan Hyatt, chief executive of Business Nonprofit Connections Inc. in Denver.

The businesses should be sure that their support is acknowledged by the nonprofits on websites, in newsletters and at events. The goodwill generated can not only attract new customers but also smooth the way for networking with other businesses.

"More and more businesses are waking up to the fact they want to have a charitable tie-in that makes sense for their business and helps their bottom line," said Holly Hall, an editor at Chronicle of Philanthropy, a biweekly publication based in Washington.

But expectations should be realistic. Suzanne Gonzalez, development director at Padres Contra El Cancer, a nonprofit in Toluca Lake that provides services for children who have cancer and their families, has had to turn down requests from small-business donors who expect the group's celebrity spokeswoman, actress Eva Longoria, to appear at their shops in exchange for a small donation.

And there are pitfalls for businesses, which can end up supporting charities that get into trouble through financial malfeasance or a fumbled event that reflects poorly on donors.

Also, small businesses can be inundated with donation requests. Local nonprofits say they rely on small businesses more than ever, as charitable giving overall has weakened since before the recession.

"As much as the large corporations can really move the needle fast, so to speak, the small local businesses have a tremendous impact on an organization like ours," said Marilyn Simon-Gersuk, chief development officer of New Horizons, a group in North Hills that serves adults with developmental disabilities.

Support does not always have to be in cash. Small businesses can donate free or discounted products, or they can volunteer time.

"Most of the time they will tell us very honestly, 'We can't write a check, but we have products, and we want to be able to support you in that way,' " said Gonzalez at Padres Contra El Cancer.

But even noncash requests can be overwhelming.

"Yesterday one sole customer came in who wanted a donation of about $300 worth of breads," said Jesus Huerta, owner of El Gallo Bakery, which his mother and uncle founded 61 years ago in East Los Angeles.

Huerta didn't turn down the person entirely. The baker gave half the requested bread free and the other half at a substantial discount.

Small businesses, which often lack the accounting structures to give a clear picture of cash flow, have to take care not to give away the store, said Paul Davis, a principal at Paul Davis & Alberta Bellisario Insurance Services in Northridge.

"I like to support a lot of nonprofits, but my goal is not to become one myself, so I have to be careful," he said. "You need to make sure you are in business next year so you can continue giving."

smallbiz@latimes.com

Copyright © 2010, Los Angeles Times



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Thank you for this encouraging, heart-warming article Ms. Zwahlen. Jim Roman and family have big hearts and have it right! Local small businesses do have a great impact. We need to remember this and have a responsibility, in some way, to contribute and help our community. I wish the Roman’s and their wonderful business all the success they truly deserve! Much kindness, Elena

JesseTorres at 7:07 PM December 05, 2010
I am proud to call Jim Roman and AJ's BBQ Pit a customer. As stated in the article, businesses need to ensure that they are profitable in order to continue their giving ways. As such, those who read this article should consider dropping in on Jim for a "Thank You" meal. Your business will go a very long way in ensuring that he succeeds and that he is able to continue to help the people of East Los Angles.