1. philanthropy:
what gives?
There's more to corporate philanthropy
than just donating money. Long-term
business partnerships are delivering
benefits across the board.
Story Jennifer Bishop
Business donations provide a significant
amount of money to the community sector
and this amount is growing. In 2001
Australian business gave $1.447b to the
community, of which $921m was in cash
with the remainder comprising sponsorship,
goods and services.
In 2004, 67 per cent of all businesses
(525,900 enterprises) donated the
equivalent of 0.015 per cent of their income
to community projects. This amount,
equivalent to $3.2b, was less than half the
$7.7b donated by individuals.
And yet the community sector is larger
than the communications, accommodation
restaurants and cafes sectors combined. In
2000 it was estimated to comprise 700,000
organisations of which 35,000 employ 6.8
per cent of Australia's working population.
On average 30 per cent of the community
sector's income comes from government
with organisations being funded up to 100
per cent. The risk that government policy
might change and reduce the funding
amount has meant that the need for
business philanthropy is growing.
Philanthropic support, through services,
goods and cash, is generally provided
on a one-off basis. This can produce
an unstable environment for community
organisations which then have to divert
funds from normal business activities
towards such things as marketing.
COMMUNITY PARTNERSHIPS
As a result, business/community
partnerships are being promoted by both
business and government to maximise the
gains to the community sector.
A government scheme has been set up
to promote this: The Prime Minister's
Community Business Partnerships scheme.
A joint winner of the 2006 small business
community business partnership award
was the partnership between Grinders
Corporate Catering and Mackay North State
High School in Queensland.
This partnership began in 1997 through
a serendipitous meeting at a dinner party.
Sonya Parris, the managing director and
founder of Grinders Corporate Catering,
met Therese Rae, the head of hospitality
at Mackay North State High School. They
found that they had a mutual passion for
hospitality and for student skills development
and a relationship has been developed that is
planned to stand for many years.
Results of the partnership have been
significant. Grinders has access to highly
trained hospitality staff, and gains a small
amount of exposure in the community
for its work. The gains to the school are
also significant. The school now has
a student pass rate of 70 per cent, a
reputation for quality and a recognition
by the community and government for its
promotion of real learning.
And the community at large gains
by reducing the regional shortage of
hospitality workers. Given that the city
of Mackay relies on tourism as one
of its major sources of income, this is
important. But the greatest gain to the
community is showing that the cycle of
poverty and unemployment can be broken
as students who thought that dreams of
being employed were beyond them are
now achieving this dream.
Ref: 26183244
Copyright Agency Limited (CAL) licensed copy
Charter
February, 2007
Page: 36
General News
Region: National Circulation: 40232
Type: Magazines Trade
Size: 1590.87 sq.cms
Monthly
Page 1 of 4

2. Meanwhil ,
y rir ers, sma usinesd"
can make a significant
contribution to its community
by doing what it normally does
best with a community partner
who is enthus .
"qWits resources
Ref: 26183244
Copyright Agency Limited (CAL) licensed copy
Charter
February, 2007
Page: 36
General News
Region: National Circulation: 40232
Type: Magazines Trade
Size: 1590.87 sq.cms
Monthly
Page 2 of 4

3. At the dinner party Rae showed her
concern for the lack of enthusiasm exhibited
by students for the hospitality course. She
felt that the course could really make a
difference to their lives and wanted to develop
skills but she needed their interest. Parris
suggested that Grinders provides students
with the experience of working at corporate
dinners, conferences, balls and the like. She
believed this experience would let them enjoy
the excitement and effort that goes into a
catering function.
EARLY PROBLEMS
Two weeks after the initial meeting the first
students arrived. It was an eye opener for
Parris. Two of the girls were pregnant, one of
the boys needed to be taken aside and given
a flannel bath, and a few of the students had
special needs. However, once washing was
completed, aprons put on and combs run
through their hair, things went well.
Other problems were encountered early
in the relationship with some teachers at
the school considering that Parris was
undertaking this action to get free labour.
With a busy business, a reputation
to protect and the high demands of the
students' training, this was not the case, but
the gossip needed addressing immediately.
The teachers were invited to experience a
function themselves.
At the function, they recognised the
amount of work being undertaken by
Grinders' staff, saw the skills being learned
and the joy gained by the students. In
addition, the teachers learned new hospitality
practices, and became knowledgeable on
the equipment and presentation that was
now used by commercial caterers.
To manage the risk that the perception
of free labour may arise again Parris
introduced prizes for the students of such
things as iPods, and TVs. These items
were frequently out of their family's financial
reach and highly prized by the winners.
Later Rae initiated a cafe that was worked
and run by students, and primarily fitted
out by Grinders. The profits of the cafe
went back to the school.
The gains for all parties are significant.
Students gain skills that give them discipline,
make them employable and build their
self-esteem. One student with special
needs would bike 10 kms every morning
before starting work at 6.30am. He would
often be sent home at midnight after
fastidiously completing the work needed
to finalise a function. Neither his parents
nor grandparents worked. His 13-year-old
sister was pregnant. He was disconnected
from mainstream society. Parris was thrilled
at knowing that he now has a job in the
hospitality industry with another employer.
He won the job on merit. He is the first in his
family to work in three generations.
The school also gains through its
growing reputation for its student focus
and skills levels. Teachers gain by being at
the cutting edge of the hospitality industry.
The school environment gains through the
contagious enthusiasm demonstrated by
the students involved in the scheme.
Meanwhile, Grinders has gained a ready
source of workers, including teachers, who
can be called upon for large functions. This
has come, however, with some resistance
from the staff who have had to meet the
demanding requirements of functions
while training and supporting the students.
Grinders is able to select students for future
employment by seeing how they work in
many situations and have found retention
figures in ex-students as staff to be good.
Some managers are ex-students who were
employed some six years ago.
HARD WORK
This partnership developed through the
accidental meeting of two people who were
each enthusiastic about their businesses
and who were very focused on the services
they provide.
They worked together to meet the
challenges that arose in the relationship
from the earliest stages. Adaptability and
Ref: 26183244
Copyright Agency Limited (CAL) licensed copy
Charter
February, 2007
Page: 36
General News
Region: National Circulation: 40232
Type: Magazines Trade
Size: 1590.87 sq.cms
Monthly
Page 3 of 4

4. flexibility and lots of hard work were the
keys to its ongoing success.
Benefits to the corporate partner Grinders
were not even considered in the initial
discussion, the early years of the partnership
nor are they now any driving force. The
intention at the beginning as now, for both
Rae and Parris, is to provide students with
skills to get them jobs. For some students
this seemed an unattainable dream, but this
partnership has made it a reality.
Key also in this relationship is the
control that Parris and Rae have over the
partnership's activity as well as the excellent
relationship they have with one another.
Their unwavering desire to improve the skills
and lives of the students has kept them
powering along, resulting in the unplanned
and significant benefits shown.
To ensure the longevity of the project,
Parris has skilled managers to step into
her shoes should such a need arise. This
succession strategy is an important aspect
to any successful community or other
partnership as ongoing central control
risks closure of the partnership should
the founding person no longer be able to
continue their role.
Grinders is a small business but through
its community goals it has been able to
produce a successful arrangement that has
improved the community as a whole.
All businesses can achieve the same if
they abide by the rules outlined by Parris
(see box, Rules for Success).
Grinders initially thought it would provide
only services but over time it has provided
prizes to the students and equipment and
training for the school. These actions helped
thwart those who questioned Grinders'
motives and gave pleasure to Parris in
knowing that she was giving something to
the students.
Had Parris not addressed the early
discontents, her reputation could have been
tarnished and business hurt. Assessing
the risks, determining that they could be
overcome and implementing the necessary
;C(
And the Institute also enables its staff
to make donations to five nominated
organisations.
Meanwhile, as is shown by Grinders, small
business can make a significant contribution
to its community by doing what it normally
does best with a community partner who is
enthusiastic to combine its resources. Your
business can do this.
Fact sheets on how to set up and manage
a community business partnership are
available from the websites of Philanthropy
Australia (philanthropy.org.au), The Prime
Minister's Community Business Partnership
(partnerships.gov.au) and Givewell
(givewell.org.au). Topics include what to
consider when getting into and continuing a
partnership, which community organisations
are interested in partnering, and such things
as taxation benefits.
strategies meant that any harm was averted
RISK MANAGEMENT
Risk management throughout the
relationship is important. Also important
is an evaluation mechanism to ensure that
the project is meeting the expectations of
each party. Here it was obvious through
the smiles, the high employment rate of
the students, and through the kudos being
gained by the school.
In some partnerships such gains are not
obvious, and measuring instruments need
to be developed to assess
the extent of gains as well
as identify any issues that
need to be addressed, or
opportunities that can be
capitalised upon.
In another form of
corporate philanthropy,
larger firms such as HBOS
and Alcoa are encouraging
their staff to take up
voluntary positions in
community organisations
and are providing payroll
deduction facilities for staff
to make donations. Staff
are also allowed time off
to work in recognition of
the importance of the link
between the community
and staff development.
Jennifer Bishop is a consultant with the National
Native Titles Tribunal.
RULES FOlR,SU=
> Focus r the i ne its to the c om t
Workon the basis of the s ills
the partnersh t
> Do-not work on the sasi who pare
can : do for you
> Offer support that is in te,ws t= y itsrim
n 9Aso,yourburoness
drain on resources
>'Havethe Cam} fu r in lved itt tt s
the beginning
Nibsuccentrategtc
CEO as main support
> Understand thioi'3nntittity
> ;E>p the the shi as it ( r $
>,c onstantfy learn frolrt pmt and u .
something more f rthe community
Ref: 26183244
Copyright Agency Limited (CAL) licensed copy
Charter
February, 2007
Page: 36
General News
Region: National Circulation: 40232
Type: Magazines Trade
Size: 1590.87 sq.cms
Monthly
Page 4 of 4