Charitable giving is a wonderful way for your business to give back. And when done right, the benefits can also reach your consumers, other organizations, the community, and even back around to your own business. Here are some of the top reasons that charitable giving would be a good fit in any business plan.
Changes public perception. When a business gives back, it does not go unnoticed. In fact, charitable acts will often get picked up by the media and shared across social platforms. This awareness can positively influence the public’s perception and your business’s reputation, leading to greater opportunities and customer loyalty.
Attracts new talent and customers. Businesses should also consider employee engagement in their charitable giving, as it provides a sense of pride and fulfillment in addition to a paycheck. A survey by Net Impact reveals that 53% of workers said that “a job where I can make an impact” was important to their happiness. The result is a boost in morale, pride, and productivity. Consumers will be drawn to your business if it invests in initiatives that matter to them. It allows customers to feel good about supporting your business because they will also be supporting a greater cause.
Provides opportunities to partner. This is especially true with cause marketing, which is a collaboration between a for-profit brand and a non-profit. If this is something you’re interested in with your business, look for causes that are genuine to your organization. This will result in more authentic engagement from customers. In fact, cause marketing is especially important to Millennials, with 76% now regarding business as a force for positive social impact. Whether its cause marketing or a different form of charitable giving, partnering with other local businesses can have a larger influence by growing consumer bases and making a more powerful impact on social good.
Comes in many forms. If charitable giving is difficult to fit into your budget, look at other resources you already have. Do you produce a product that others need? Do your employees have special skills that could benefit a specific non-profit? Can you influence others to help drive change on important causes? There are plenty of scenarios where the donation of your knowledge and time can be far more valuable than a monetary donation.
Whatever charity you choose, always make sure to do your research. It’s important to understand how the non-profit works to be sure your values align. You can set up meetings with executives or program directors, and schedule an onsite visit to get a better feel for the way it runs and operates. And always consult a qualified CPA, or tax preparer to develop a business giving plan that fits with your cash flow and long-term business goals.
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