4 Ways That Supporting Charity Is Good for Business
'Giving back' is good for the soul ... and in many cases,
good for the bottom line.
Recent studies suggest that millennials have driven the
social responsibility movement, with 70 percent of them reporting that they'll
spend more with brands that support causes. Given that millennials represent
$2.45 trillion in spending power, the notion of "giving back" may be
very powerful for your company's sales, not to mention, it's overall purpose.
Numerous enterprise businesses have come up with some pretty
creative ways of doing social good - for example, Stella Artois' "Buy a
Lady a Drink" campaign, which provides access to clean drinking water to
women (mothers) in third world countries. But you don't need a huge budget or
full marketing team to execute a strong "giving back" campaign.
Corporate donations are a great way to generously help nonprofit organizations
that matter to you, your employees, and your community. Most small businesses
are able to make charitable donations each year. There are numerous benefits to
corporate donations, but here are four that you may want to consider.
Corporate donations allow companies to take active interests
in their own communities and can also lead to a huge boost in employee morale.
If a company chooses to make a corporate donation, workplace culture can
improve with increased employee involvement and a positive general attitude.
According to a 2016 Deloitte study on volunteering, millennials were "twice
as likely to rate their corporate culture as very positive" if their
company participated in workplace volunteer activities. Employees respect
companies that care for their community--it simply makes employees feel good,
and increases the emotional attachment to their employer.
Philanthropic businesses are some of the most powerful in
the world. For example, Apple matches employee donations, and has donated more
than $78 million to charities through 2015. Charitable sponsorship is a great
way to do good in your community, while also gaining marketing experience.
Donations put your company's name out there, especially if you sponsor some
kind of event. Just make sure that the event or charity mirrors your own
company's goals. For example, if your company makes sporting equipment,
consider sponsoring local sports teams or tournaments. That will show your
current and future clients that you really care about your business and your
This is one of the most immediate benefits of corporate
donations. You may not instantly see how your contribution benefits your
community, but you will quickly notice the tax savings. Of course, businesses
shouldn't donate with the sole expectation of financial gain, but there are fiscal
rewards for helping a charity in need. Businesses can usually receive tax
deductions from sponsoring charities or events, but your should make sure to
follow the rules and go about the process in the right way in order to comply
with all tax requirements.
It's Good for Your
Charitable contributions have numerous benefits, but the
most important one is obvious: you should give back to your community.
Charitable donations help better your community, and the public will notice if
a company is making a real effort to improve its surroundings. Your company's
charitable donations could help improve schools or parks, giving children safe
places to learn and play. If you choose to donate to a nonprofit organization
that conducts medical research, you could also help in the effort to cure
diseases. The opportunities are endless and extremely helpful.
One way to engage employees to participate is to align the
company's donation choices with causes that have the greatest meaning to your
workforce. For example, Brixio, a tech company based out of Lehi, Utah, chose
to donate to the Livestrong Foundation after several of Brixio employees' loved
ones were diagnosed with cancer. Josh Aston, Brixio VP, said there are a lot of
reasons why companies don't donate to charities, but you can always help
initiate change. "Not every company can be a social change company,"
Aston said. "However, we are starting to actively bring up our partnership
with Livestrong to those we do business with, getting the idea of social giving
planted within them."
There are many reasons why your company should make
charitable donations, and any reason that motivates you is a good one. Donating
to charities can help change your business and work culture. It can also have a
dramatic impact on others. So pick a cause that you believe in and make your
community a better place to live. It's good for business.