Managing Donations & Free Rentals

Every company, big and small, receives donation requests. It’s a part of doing business. While some are reasonable, others feel outlandish. Likewise, what could be fair for a large portable restroom company with hundreds of units is impossible for a smaller organization with none to spare. Yet, even micro businesses can find ways to support their communities without donating a portable toilet and still benefit from tax deductions and good PR.

Managing donations is challenging, but PROs can simplify the process without causing hard feelings. Learn how to preserve your bottom line while giving back to the community.

Donation Requests: Yes or No?

There aren’t too many PROs who haven’t been in this position. An adult walks into your business with one or two kids in tow and has their kids plead for a donation. All the while, your phone is ringing and you have a crushing workload waiting. It’s frustrating. They’re asking for a rental and services that pay your bills (and your employees’ wages). What happened to selling candy bars?

Many portable restroom companies receive requests through website contact forms and over the phone. Some are valid, like fundraisers for boys and girls clubs, veteran events, and 501(c) (3) organizations. PROs even lend a hand to help business owners in the industry. Yet, other demands make you feel like you’re being nickel and dimed.

Consider developing a simple process for handling donation requests. While it won’t prevent your initial frustration, a streamlined method allows anyone in your office to take a request and avoid negative experiences that could result in a viral social media post.

Managing Donation Requests

A donation process and policies are small (and large) business owners’ friends. A policy removes the need to make decisions whenever someone requests a donation. You refer to the policy. It means you don’t have to answer yes or no. They complete a form and follow the process from there. Follow these steps to set it up.

Have a Budget

The first decision is to decide how much you want to donate yearly. According to SCORE, “75% of small business owners donate an average of 6% of their profits to charitable organizations annually.” However, many large corporations reserve about 1% of their pre-tax profit for donations. Your accountant or CPA may have suggestions based on your personal or business tax burden.

The bottom line is that there isn’t a hard and fast rule. It’s more important to have a figure to base your decisions on. Once you have a number, add it to your operating budget. Even if you only have $100 a year, putting it in your budget allows you to be strategic about your charitable giving.

Create a Policy

Public corporations often post their charitable giving policies online, which isn’t necessary for portable restroom businesses. However, if you want to highlight your philanthropic causes and embed a request form on your website, you could also include public policy information.

The purpose of having a policy is to simplify decision-making. You should be able to look at your policy when a request comes in. Does it meet the eligibility requirements? If not, you can automatically send a denial letter.

The effort you put into your policy depends on your goals regarding charitable donations and your approach toward giving. If your company participates in many community events and your employees are active as well, design a policy that you can use to attract and retain staff. It can increase employee morale and camaraderie. This type of statement would include an overview of your purpose and reasoning for corporate giving. It might also refer to any types of company-match programs offered or volunteer opportunities.

On the other hand, if you merely want a policy to make a yes or no decision, keep it simple. It’s also a best practice to have a lawyer look it over.

Outline the following details:

• Eligibility criteria: Consider specifying where the event, charity, or organization must be based or located. This might be your city or general region. Decide if you will support personal causes. If so, mention that decisions are made on a case-by-case basis. Also, PROs can say that certain donations above a specified dollar amount or free or discounted rentals are only available for 501(c)(3) entities.
• Focus area: If your portable restroom company prioritizes specific causes, share these here. For example, if you have a strong relationship with the local Boy Scouts of America because you’re an Eagle Scout, convey this information. Or, if your company regularly donates to local cancer events, explain why this matters to your team.
• Exclusions: Many companies add a statement here similar to employment anti-discrimination policies. It should state that your company doesn’t donate to organizations that discriminate based on race, age, sex, national origin, religion, sexual orientation, or disability concerning volunteer participation, employment, or the provision of services. You may also exclude religious or political events, backyard BBQs, personal events, and any other requests you’ve encountered and want to avoid.
• Request procedure: This is where you will outline the donation request process. Here’s an example: Request a donation form online or in person and return it with all required fields completed within 60 days before the event date. No requests can be processed over the phone or without a completed form. We will process your request within 30 days and respond via mail or email.

Larger companies with corporate giving programs and employee involvement may structure their approval processes differently. These situations typically allow staff input on which charities and causes the business will support. If you offer a matching policy or let staff volunteer their time, consider adding these details to your donation policy.

Create Basic Forms and Templates

Having a policy, process, and ready-made forms means you and your staff don’t need to spend precious minutes listening to donation appeals. Smile, thank them for stopping by, and hand over a form. It explains the rest. The same goes for requests made through email or your website’s contact page. You can create and print or share Google Forms via email or link or by embedding them on your website.

A donation request form may have the following fields:

• Date of request
• Name and contact details of the person making the request
• Name and contact information for the organization (or individual) benefiting from the donation
• Reason for the request (annual event, sponsorship, or emergency funding)
• Date donation is needed
• Amount or item(s)/service(s) requested
• Is your organization a 501(c)(3)?
• Has the contact person or organization received a donation from us in the past?

Remember to include your eligibility and exclusion policy and any timeframe requirements on the form. Mark mandatory fields so requesters understand that any forms not completed in their entirety won’t be considered. Provide instructions for submitting the forms and how you will notify them. This will help eliminate some of the phone calls and repeat visits. Remind those who do show up to re-read the form and check their mailbox or email inbox.

You can use approval and denial templates to send an automated email or letter informing requesters of their status. Build templates using a free, personal Google Docs or a business Google Workspace account. In both instances, you can share the documents with others through the “share” button. With a personal account, start the file names with “template.” Workspace users can submit files to their template gallery.

Keep Records and Review Donations Yearly

Save digital or paper requests, approvals, and denials. You don’t need to write anything on them beyond what relates to your policy or as your accountant requires for tax purposes. Go through donations yearly to see if you’re over or under budget, how charitable giving impacted your tax burden, and if there were any other direct or indirect benefits. Use the insights to guide your next year’s budget and planning.

Understanding Donations and Business Tax Deductions

It’s usually best to consult with your CPA or tax advisor to learn how to optimize charitable deductions. The organization must be a 501(c) (3) to qualify for a tax-deductible charitable contribution. According to the IRS guide on Charitable Contributions, free rentals or monetary donations to individuals aren’t deductible.

You can use the IRS’s tax-exempt organization search tool to verify the group’s registration. In some cases, you can deduct up to 60% of your adjusted gross income (AGI). Depending on your business structure, you may take the business tax deduction on Schedule C or Schedule A (Form 1040) as an itemized tax deduction.

Additionally, the IRS requires a written letter of acknowledgment from the charity for any property or cash donations over $250, and if you donate $500 or more, you must complete Form 8283. Although you can’t write off your personal work hours, you may be able to deduct for an employee’s hourly pay. Plus, you can claim travel expenses related to charitable giving.

Benefits of Donating

Aside from tax benefits, giving back to your community can improve employee morale and brand image. It’s also a great way to build trust in your company and get your name in front of more people. Of course, gaining something from donating shouldn’t be first on your mind. But when it feels like everyone is coming to you with hands out, it’s wise to consider the advantages.

Positive Public Relations

Businesses are just as much a part of the community as citizens. They use utilities, public services, and roads. And, increasingly, people expect companies to participate and give back. Indeed, SCORE stated, “85% of consumers have a more positive image of a company who gives to charity.” Some events will add your company to its list of sponsors or advertisers if you donate. Local newspapers or other media may cover the event as well.

In addition, you can mention your philanthropy on your website and promotional materials. Each time you donate, ask if you can take a photo, ask a few questions about their charity, and feature them on your website.

Then, turn that content into multiple assets, such as:

• A highlight on your community page
• A blog post about the charity and event
• An email about community happenings
• A blurb on your charitable giving page
• Social media posts showcasing the event (and your rental)
• Updated bios of any staff or owners who participated

Raise Brand Awareness

Increasing brand awareness is a matter of getting your name out there. So when someone thinks of a porta potty, your business is the first one that comes to mind. Placing a unit at a charity event or local fundraiser is a great way to boost brand recognition. Consider adding a temporary brochure holder to the side of the unit. It’s a discrete way to pass information to interested parties without marketing during the event.

Networking Opportunities

Many PROs and their staff live and work in the communities they serve. They know the charities and people affected by the house fire or cancer. Many times, portable restroom businesses not only donate a portable toilet to the event but they also attend. While it’s not the time to hand out brochures, there’s nothing wrong with carrying business cards. Other business and government employees will be there. It’s an excellent opportunity to chat with professionals and community members and remind them that you’re a trustworthy person to do business with.

Attract and Retain Employees

Employees want to work for a company that cares about the community they live in. The same goes for job applicants. SCORE found that charitable giving helps worker morale and bolsters rapport between staff. Highlight your philanthropic efforts to reach your employee retention and recruiting objectives.

On job posts, you can add that your company gave back a certain percentage or donated to this or that organization in the previous year. Or say that you’re active in the community and it’s part of your mission to give back. Then, stand behind that with your actions and be prepared to talk about what your company does with charitable organizations.

Sustainable Ways to Give Back to Communities

Donations don’t always mean free portable restroom units. Consider offering an alternative to charities you want to support or believe it’s beneficial for your company. These methods also allow you to help your community without breaking your budget.

1. Consider Discounted Rates Instead of Freebies

Budgets are tight, and every small portable restroom business can’t give away free rentals, especially if the organization is not a 501(c) (3). In this case, you could give a discounted rate. Perhaps ask them to cover your employee’s wages for service, and you will provide them with the portable toilet and supplies for free. Or work out another deal that is mutually beneficial and leaves the charity with a good impression of your company.

2. Partner with Another Small Business

See if there’s another non-competitor who could share costs with you. Ask them if they’d like to co-sponsor a free rental. Explain the benefits, including any mentions of their business on your social media or website, tax-deductible expenses, and so forth.

3. Invite Employees or Customers to Donate

For causes you want to support after you have met your annual budget or despite the charity being ineligible, consider helping secure donations. You can offer to share their flyer on social media or email, put a collection container in your shop, or talk to others in your professional network. If they need volunteers, you can see if any employees or family members would like to help.

4. Think Outside the Box

A free porta-potty rental can be a big ask. What about a hand sanitizer station or washing unit near the food table? Could you toss them some free toilet paper? Or send over some swag to fill their raffle gift baskets? Just because you say no to one request doesn’t mean you can’t think outside the box and come up with another idea. It’s not worth the effort for everyone who walks through your door. But for some people who you would like to help but don’t have the funds, this can be a good compromise.

Donations and Free Rentals: Balancing Goodwill and Budgets

Portable restroom businesses provide a vital service to communities. Charitable giving is one way to strengthen those ties and stay connected. You can ease the mental and financial burden of giving by developing a budget, policy, and system. Then, leverage various methods to ensure your donation has the maximum impact on the charity and your company.

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