Law Practice Today

Law firms are traditionally generous corporate donors. You’d be hard pressed to attend a fundraiser or find a local charity that didn’t have at least one law firm attached to it. While giving is a budgeted line item, often times it’s missing from the firms’ business plan. To maximize return, which can include increased visibility in the community and new business opportunities, charitable giving should be organized and operated as part of a firm’s business plan.

In a recent Conference Board survey, 45 percent of the 158 businesses surveyed responded they would be decreasing charitable donations in 2009. Another 16 percent were contemplating doing so. When faced with a down market, some firms may choose to decrease or altogether eliminate giving from their budgets. A down market should be looked at as an opportunity for creativity and to evaluate efforts. In today’s competitive market, corporate charitable programs and community partnerships can prove to be the competitive edge firms need. Firms should also consider that charitable giving can be more than writing a check. More than ever non-profit organizations need volunteer hours or pro bono legal work.

It is possible to be strategic and authentic in giving efforts. When done right, giving can increase a firm’s visibility in the community, boost employee morale and even lead to new business opportunities. A firm looking to increase visibility in the community should consider becoming a major benefactor of a smaller organization. If strengthening client relationships is the driver, consider asking clients what causes they are involved in and make a donation. A firm looking to improve retention or boost employee morale should get employees involved in the process. Ask employees what causes they support or set up community service days allowing them to volunteer their time.

Another factor that must be considered is how to publicize the good works. While there is a fine line between good marketing and appearing self-serving, some amount of publicity should be associated with charitable giving. If your firm is not comfortable with this, consider asking the non-profit partner to send out a press release. Many times the non-profits will want to take on this task as announcing new donations creates greater awareness of the organization and the work they do. At a minimum, law firms should create a page on their websites to discuss their giving programs. Clients want to do business with firms that do good.

Law Firms Organize Giving

Volpe and Koenig, an intellectual property law firm in Philadelphia, formalized its giving plan in 2007. Always generous donors of time, money and talent, the firm formalized giving to make donations that would result in providing a measurable impact on the communities in which they live and work. Funded by the firm’s ten shareholders, the Volpe and Koenig Giving Fund provides $40,000 each year to two local non-profit organizations, both of which may fall under the radar of corporate and foundation donors.

“We have always donated funds and volunteered time to help people in our community who are in need,” said Jay Halt, president of Volpe and Koenig. “We decided to formally create our Charitable Giving Fund two years ago to provide financial support to those non-profits that are doing great work, but are not as visible as some of their larger counterparts”.

In the giving fund’s first year, the firm received 50 applications; last year that number more than tripled and the firm was flooded with more than 160 applications. The increase can be attributed to both the economic situation and increased public relations efforts. In 2007, Volpe and Koenig awarded $20,000 to Canine Partners for Life, a local agency that breeds and trains service dogs. The check presentation was featured in local legal and news publications, as well as on the local evening news.

In 2009, Volpe and Koenig awarded $20,000 to After School Activities Partnerships, a grass roots organization that works with schools and recreation centers to provide programs for the thousands of unsupervised school-age children in Philadelphia. The Giving Fund enabled ASAP to continue its Scholastic Chess Challenge, an annual chess tournament of more than 400 kids from 69 school teams. Coordinated by ASAP, the check presentation was another public relations opportunity for the firm; Halt was presented with a citation on behalf of the School District of Philadelphia. Additionally, a local public affairs television show, discussing the importance of corporate philanthropy, was taped featuring Volpe and Koenig CEO, Tony Volpe, and representatives from ASAP.

Volpe and Koenig chose to fund smaller organizations which also enabled the firm to build relationships with the groups. The donation to Canine Partners funded the cost of training a service dog, Einstein. The one year-old yellow Labrador, named by the firm’s employees, is a frequent visitor to the office. “Everyone really enjoys the days Einstein comes in to see us. The employees love it and it’s a great reminder that the donations we have made are really being put to work”, Halt said. In addition to the television appearance with ASAP, the firm will host an outdoor summer chess tournament at their office, setting up matches with Volpe and Koenig attorneys and ASAP chess champions. Halt said “this is an opportunity for us to showcase these talented kids and create an awareness of the good works ASAP is doing in the community”.

Volpe and Koenig is just one of the many firms that have formalized giving. Faegre & Benson established its foundation in 1993 to support their longstanding philanthropic plans. The firm’s corporate giving was recognized by the Minneapolis Regional Chamber of Commerce in 2008 when they were awarded with the Minnesota Keystone Program Honored Company Award.

The international law firm of Holland & Knight established the Holland & Knight Charitable Foundation in 1996 to oversee the management of the firm’s increasing charitable contributions and activities. Funded through contributions from the firm, attorneys, staff and outside sources, the Foundation underwrites the Opening Doors for Children program which provides mentoring and tutoring to thousands of children and schools across the country. The Foundation also supports several essay contests for high school students and donations to various local charities.

In 2001, Brown Rudnick created the Brown Rudnick Center for Public Interest which focuses on the firm’s public interest efforts, including pro bono legal work, charitable giving and community involvement. One facet of the Center is the Brown Rudnick Charitable Foundation, which provides grants to improve inner-city education in the cities where Brown Rudnick has offices. The Foundation provides both annual relationship grants, which include financial contributions, pro bono legal involvement and volunteer opportunities, as well as Community Grants, which cover one-time, tangible and immediate needs.

Even in tough economic times, it is important that law firms continue the tradition of giving. Formalizing giving and making it part of the business plan provides firms with another tool to help increase visibility in the community, strengthen client relationships and boost employee morale. When all is said and done, charitable giving is about helping people and that’s smart business in any economy.

Charitable Giving and Community Partnerships will be discussed in the 10x10 panel at the ABA Law Firm Marketing Strategies Conference held on November 12-13, 2009 in Philadelphia. Visit www.lawpractice.org/marketingconference for additional information.

For additional information about charitable giving, please read "Sponsorships and Charitable-giving Programs: Your Firm's Rights to Realizing a Proft," by Ellen S. Hattenbach