How Philanthropic Giving Benfits Your Company

If you are a small business owner looking to gain a competitive edge for your company, look no further than a local nonprofit. Employees and customers look toward businesses to consciously support nonprofit organizations. Choosing which charity to support is a deeply personal decision. Many business owners select causes that have a personal meaning for them. Others ask employees to make suggestions on where the business should focus its philanthropic efforts. No matter which organization you support, here are some reasons it benefits your company.

Strengthen Your Community

Contributing to a nonprofit organization means your business has a direct impact on the mission statement of the charity. Jeffrey Previte former CEO of EBI Consulting, selects organizations that have effective and clearly defined management practices. You can fund the purchase of buildings or repair needed facilities or equipment.

Recruit and Retain Employees

Younger workers demand that their employers support local community organizations. They want to feel that their efforts support a greater good than just themselves. Adding your support of a nonprofit organization into your business goals allows applicants to see your commitment. Benefits to your corporate culture include:

  • Build teamwork between employees and departments.
  • Increase employee leadership skills.
  • Improve team morale.

Work Together

Offer paid time off for employees to support the mission of the nonprofit organization. This can include anything from running in a 5K to moving office furniture to working fundraising events. When employees work together toward a common goal, it builds their effectiveness in the office.

Attract New Customers

In addition to attracting high-quality employees, customers equate your business with the charitable work that you do. People are willing to pay a higher price for products when the company supports local efforts in the community.

Promote Your Business

Telling your story can give your business free publicity. Share photos on social media of your employees participating in an activity sponsored by the nonprofit organization. Publicize that a portion of profits benefit the organization. Create a limited-quantity product that directly benefits your nonprofit.

Establish a Network

Taking the time to build your brand reputation around supporting your local nonprofit organization means you meet other people with similar goals. They see your advocacy as a sign that they can trust your organization. Consider the benefits of adding these resources to your professional network:

  • Potential customers seeking your product or service.
  • References from fellow volunteers that have learned to trust your organization.
  • Vendor contacts with whom you can establish relationships.
  • Fellow entrepreneurs that you can call on for mentorship.

Receive Tax Benefits

Even the government helps you support nonprofit organizations. Tax deductions can provide a significant financial benefit to donating to your charity. Your accountant can help you get the most deductions for every dollar you donate.

Feel Good

Let’s not forget the importance of mental satisfaction in knowing that your business is so successful that you can invest in your community. Not only do you get a mood boost from your actions, but some studies also show that donating to other organizations lowers your blood pressure.

Incorporating philanthropic goals into your mission statement benefits your business on many levels. These benefits lead to increase profits.

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