Why You Should Add Philanthropy to Your Business

gift box wrapped with dollar bills and red bowIt’s the season of giving, and as you celebrate the holidays with family and friends, you may be feeling a renewed sense of generosity and goodwill. At this time of year many of us give not only to those on our gift lists, but also to those who may be struggling to feel the same good cheer that we’ve come to expect during the holiday season.

Many companies choose to give back during the holidays as well. Your business can make an impact by making charitable giving a part of your business model, not only seasonally, but year-round. This kind of altruism isn’t just good for the spirit—it has important benefits for your business as well.

How Charitable Giving Helps Businesses

Giving Motivates Your Employees

While the good vibes of giving a gift may fade after a short while, long-term involvement with a charitable organization has lasting and powerful effects on employee satisfaction. A survey earlier this year by Great Place to Work found that employees who had a positive experience of giving back at their companies were 4 times more likely to give extra to get a job done, more likely to be brand ambassadors, and more likely to want to stay at their companies long-term.

business people seated on couch surrounding open laptop
Business image created by Freepik

Another study by the Cone Cause found that employees involved in causes through their company were 28% more likely to be proud of their company’s values and 36% more likely to feel a strong sense of loyalty than employees who were not involved. Philanthropy can also help employees bond as they work together for a cause, building a strong sense of teamwork and morale.

Generate Positive Vibes for Your Brand

When you make a long-term, involved commitment with a charitable organization, awareness of your brand spreads throughout the community. At the same time that you’re doing good, your community is learning who your brand is and what matters to you. You’re building connections with members of your community, and your name will be talked about in the community in a positive light. And, because word-of-mouth is the top way that consumers make decisions about brands and products, you’ll be generating positive conversations about your brand that will lead consumers to look to you for future needs.

Stand Out from the Crowd

Since not all companies are going to incorporate charitable giving, doing so differentiates you from your competition. The Cone Cause found that in the last year, 41% of Americans bought products because those items were associated with an issue or cause. Consumers, especially millennials, are more willing to purchase products or services from companies that support causes. There is an added sense of trust and of humanity that is present when a brand’s values align with those of consumers—which leads to increased customer loyalty.

Tax Deductions

Sometimes donations of funds, items, and some volunteer expenses can be deducted from your taxes. Ask your accountant for more specific information on how you might do this.

Walk the Talk

First, consider why you are giving back and what cause you will give to. The more personal your causes and reasons for giving are, the more genuine you will come across and the easier it will be to share your story. Maybe you or a loved one was helped by a cause, and you want to support others experiencing similar situations. Or maybe you recognize certain opportunities or advantages you’ve had and want others to have those same opportunities. It’s not the size of the gift but the sincerity of your giving that matters most.

Also think about how your chosen cause ties in with your company. If you sell pet food and supplies, you could support local pet shelters. At the same time you’re helping animals find loving homes, you’re creating potential customers for your business who will need to shop for their new pet. Or if you sell women’s clothing, you could sponsor a fundraiser for breast cancer research. Many of your customers may have had experience with cancer or know someone who has, so you’ll be deepening the connections you have with them.

Other Ways to Give

  • Have a portion of overall profits or overall proceeds from a certain product or service go to a charity.
  • Design a product or service specifically for the cause you want to support. You don’t have to give 100% of profits to the charity, but you can market the product as created with the intention of supporting a specific group or cause.
  • Market products as buy one, give one—consumers know each item they buy will be matched and given to someone in need.
  • Set up scholarships to help students succeed. If you’re a tech company, you could support a scholarship that allows students access to special opportunities like coding classes or workshops.

Whichever strategy you decide to use, it’s essential that you are consistent in what you give and when you give. Maybe you decide to give quarterly, so you can tell your customers that in the last 3 months you were able to give a specific amount with their support.

Take Action

man and woman volunteers posing
Business image created by Peoplecreations – Freepik.com

Contributing financially to a charity is admirable. However, giving money alone will not have the same impact on your employees or your community as getting involved. Encourage employees to participate in events, serve food at a food shelf, or personally drop off donations. Some companies incorporate days into their annual schedule that employees can take off to volunteer. Consider closing the office for a day and being present to support your cause at a big event.

Being more deeply involved increases your company’s connection to your community, is more meaningful and enjoyable for employees, and helps build your story. Your contributions to an organization are more meaningful and impactful if they grow and evolve over time, and if you personally interact with your cause, you’ll gain a deeper understanding of who your cause is helping and how they are benefitting from its services. The deeper that understanding, the better you’ll be able to share your story and gain more support for the organization and for your business.

So, let’s put this subject into action! For every like on this article, Paw Print & Mail will donate $2 to the local Meals on Wheels program at Age Well, up to $100. Thank you for your support.

Subscribe to our email list so you never miss a post from Paw Print!

Leave a Reply