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Current Dollar Fair Market Valuation Pro bono work should be valued at Fair Market Value (FMV) and recorded as non-cash giving in CECP Survey Question 9.  FMV is the hourly or project cost that a paying client would incur for the same service. Companies are encouraged to use the three scenarios below to assist in determining the FMV of services rendered.  The dollar values in the scenarios below are based upon current U.S. salary data adjusted to account for geographic differences and typical fee-discounting practices.  CECP is currently unable to provide dollar-value assistance for non-U.S. pro bono service. Paid-release-time service that does not meet the pro bono criteria should be recorded at a dollar value that is appropriate to the skills involved in CECP Survey Question 22 (do not include pro bono hours in Question 22, as that would be double counting hours recorded in Question 9). When in doubt, the current Independent Sector rate is appropriate.

For companies with minimal pro bono tracking capabilities In the absence of employee skill area data and internal billing rates, CECP recommends using an estimate of $120 per hour for pro bono service projects. This is based on a rounded average billing rate for mid-level employees across disciplines, highlighted below. For companies with moderate pro bono tracking capabilities Companies that track the seniority level or skills deployed in pro bono projects should use the following chart to value pro bono hours if internal rates are not available.

For companies with robust pro bono tracking capabilities Companies should use their best internal billing information to determine the FMV of services rendered. These valuations should be adjusted to reflect billing differences by: geography, seniority level, rate discounting, employee skill area, etc. To do this, companies must track project metrics that affect billing rates so that an accurate, defensible valuation for pro bono contributions can be recorded. CECP strongly encourages companies to track pro bono to this level of specificity whenever possible.

Businesses can build stronger relationships with their stakeholders through their charitable endeavors. Helping others while helping themselves can lead businesses to bigger profits.

on’t forget your employees

Clarify your business’ values

Find out where your stakeholders are donating

First Steps

Picking a Charity

Determine the criteria for the potential charity

arrow it down: Search for charities that meet your criteria. Here is the tedious part. Giving USA cites there were more than 1 million charities in the United States in 2009. You may want to enlist another person or a committee to help with the selection process. GuideStar.org has a wonderful search function that allows you to pick through its database by criteria

Compare mission statements

Make sure organizations are registered

Transparency and accountability

Trustworthy non-profits will discuss their programs and finances

Give your partnership a trial run. Test your partnership by donating to a small project before doing a large campaign.

Charities are a fulfilling way to further the mission of your organization while helping the community in which you live and work. Keep these tips in mind the next time you conduct your next cause marketing or charitable campaign, and your organization will be sure to come out ahead.