Few in hospitality have been immune to COVID-19’s economic effects; one charity is helping the hardest hit.
Michael Schneider, president, Next Events, and founder of Hospitality Cares, is on a mission to help people who have lost their jobs or been furloughed during the pandemic by giving US$500 grants to workers in hospitality interior design and procurement.
Contributed by Debbie Carlson
“When COVID-19 came, we pooled all our resources and went into high gear to raise money for people in need,” Schneider said. In 2020, the charity raised US$50,000 and issued 31 grants. It averages three applications per month and Schneider recently told HOTELS that they’re looking for more applicants.
“We have a good problem of having too much cash and not enough applicants. It’s a bit of a conundrum. We think that people are embarrassed to ask for money or apply for grants, or that they feel other people need it more than they do,” he said.
In 2009, Schneider founded Hospitality Cares in the wake of the 2008 financial crisis with his mentor, the late Helen Marcus of Zenith Rugs. At the time, Schneider owned the hospitality interiors publication Boutique Designs, and he and Marcus discussed ways of giving back to the industry. The charity raised money in its first year, but when Schneider sold Boutique Designs to ST Media and joined its staff, a conflict of interest shut down the charity.
When Schneider left ST Media in 2019, he sought to restart the organization, working with Jim Hesterly, now the charity’s vice president. By January 2020, Hospitality Cares had identified its advisory board and it held its inaugural meeting the following month. In March 2020, Hospitality Cares established its coronavirus relief fund.
“The irony of this is we did not reboot because of COVID-19; [the virus] was unbeknownst to us,” Schneider said.
One of the first challenges he ran into was trying to reinstate the organization’s 501c3 status, the U.S. federal tax code that allows charities to receive donations and donors to take tax deductions. Because Hospitality Cares was dormant for 10 years, Schneider personally paid the back taxes. Its 501c3 status restored, Hospitality Cares dispersed its first grant in May.
One of the charity’s success stories is an early grant recipient, Tori Kennedy. Schneider said Kennedy worked for a Dallas, Texas-based interior design project manager when she was laid off at the end of March 2020. In June, she applied for financial assistance and eventually, Hospitality Cares hired her as a part-time social media manager. Kennedy was recently promoted to lead administrator and social media manager.
Pivoting gracefully
Schneider noted that although the hospitality industry has experienced other hardships such as natural disasters, COVID-19 is particularly devastating because it has taken away some essential parts of hospitality — traveling, staying in hotels and in-person relationship building.
Schneider, who has worked in the industry since 2005 when he started Boutique Designs, has also had to pivot. After founding Next Events, the firm booked a 150-person cruise for the week of March 12, 2020, the same week the U.S. State Department issued its order grounding cruises. The event was postponed, and Schneider said he lost “significant” money on it. Although his company now offers virtual meetings, he’s still trying to figure out how to eventually execute in-person events. Everyone in the industry is looking ahead, “but in the interim,” he asked, “how do we survive?”
One way is by reaching out. “I think the hospitality industry just needs to be reminded to extend an olive branch to someone who’s suffering.”
People shouldn’t be afraid to ask for help, Schneider said. He cited one person who gave a sizable donation to Hospitality Cares. When Schneider spoke to the donor about his own business, he admitted his firm was struggling. Schneider told him to reach out to board members if he needed help.
“Some people might think there’s an ulterior motive, but that’s not true,” he said. “If you’re willing to help, then people want to help you in return.”
As for what’s next for Hospitality Cares, Schneider has started delegating work in order to strengthen the organization’s structure, giving it a chance to grow without him — an entrepreneurial lesson he’s learned. The group recently hosted a social media fundraiser called “Pie in the Face Challenge,” the idea of board member Heather Scott, founder of Studio Proof Collection, an architectural wares and design consultation company.
Once a new normal arrives, Schneider hopes to have in-person events again and to partner with other organizations. He would like to see participatory events — such as 5k races for charity — held during industry affairs, which goes back to relationship building.
“People who roll up their sleeves and get involved are like minded,” Schneider said. “And they generally find other people with whom they want to develop relationships and do business.”