In Hard Times, Giving Is Surviving : Corporate philanthropy that’s done in partnership with employees can benefit the workplace as well as the community.

California is stuck in its worst recession in decades, and lags the country in its recovery by at least 12 months. While a great deal of publicity is given to businesses that pull up stakes and move to Nevada or Arizona, most of us do not have that luxury. We make it here, or we don’t make it. Meanwhile, we are giving our full attention to how we contribute to helping our businesses survive until the good times come again.

In my view, our economic health is directly tied to corporate philanthropy--our commitment to the communities in which we operate our businesses, sell our services and in which most of our employees live. And this philanthropy is something all companies, large or small, can practice.

In an economic downturn, the demands on organizations that take care of the homeless, the unemployed, the battered and abused are at their greatest. Yet government funding is reduced, foundations and corporations cut back and private donations become more precarious.

Most of us want to help, but we are overwhelmed and paralyzed by the immense need. We have to break down the need into understandable and manageable components. We business leaders can do that by designing meaningful programs that our employees and members of our community can participate in. There are compelling economic reasons why this makes sense:

* Employee motivation and productivity. One large company began a program to offer classroom help in area schools. Employees would conduct teaching sessions and other programs. Employees could volunteer, but only those in good standing could participate. A number of marginal employees improved their performance on the job so they could qualify. Another company adopted four schools and asked for volunteers from its 1,400 employees to participate two or three hours a month during work hours. That company found that people managed to get their work done and still be able to participate in the Adopt-a-School Program. Sixty percent of its employees now participate and it is a great source of pride for the whole company.

* Creating presence in the community. Companies can encourage employees to belong to hospital and museum boards, for example, as representatives of the firm. The company supports them, whether it’s buying a table at a fund-raising dinner, sponsoring a sporting event or donating a computer. The companies thus use promotion dollars to give stature to their own peoples’ role in their philanthropy, which in turn makes the company name more visible in the community.

* Marketing dollars can be leveraged. When our own company recently moved into new quarters on Bunker Hill, we acquired all new work stations and equipment. We needed to dispose of our old furniture, and considered several options, including hiring a salvage outfit or donating it to charity. We chose instead to hold a silent auction for our staff, giving them the opportunity to buy desks, filing cabinets, adding machines, computers, even microwaves. The auction raised $18,000, which was donated to charity in the company’s name. We had written off all of the furniture and equipment, the salvage value was minimal and the staff was thrilled to get such bargains.

* Public-relations benefit. When members of the 1993 Super Bowl Host Committee were having difficulty selling ticket packages and sponsorships, they created “Touchdown for Youth,” a program to send poor kids to the game. They talked to businesses about sponsoring children at $1,000 each. They also got clothing and shoe companies to donate new gear, and the kids got to participate in the halftime show. They raised $750,000 and sent 750 kids to the Super Bowl. * Tax advantages. Outright donations are tax-deductible, but what is less well known is a provision of the tax code that allows businesses to earn federal tax deductions by donating inventory to qualified charities. You can make these donations through the National Assn. for the Exchange of Industrial Resources, a nonprofit agency that matches donations with more than 7,000 qualified schools and charities and provides the donating companies with necessary tax documentation.

Why do it? We cannot isolate ourselves from the problems of the community in which we live and work. Corporate philanthropy is not a luxury for the companies who have made it, or for those in the public eye. All of us, large and small, must do what we can, and each of our efforts will contribute to the economic health and vitality of Los Angeles.