Corporate philanthropy, indeed, means expenses for the business. Even if the act of giving may not necessarily involve cash donations, giving away products or allowing employees to do volunteer work still requires an outflow of company resources. Despite the cost, however, businesses should not shy away from giving back to society. Companies can reap invaluable rewards through philanthropy. Here are the many benefits that you get by giving.
1. Boosts Workforce Engagement
One positive impact of adopting the corporate culture of giving is improving your employees’ levels of engagement. Employees feel happy and fulfilled whenever they participate or donate to corporate charities which causes they believe in or support. Also, when people are working for a common objective, they tend to create closer and deeper relationships. A direct outcome of workers bonding with each other and having an increased sense of fulfillment and happiness is a marked improvement in their productivity.
To promote the culture of giving, your company may try matching gifts or donating amounts that correspond to what the employees have given. If you want to understand this concept better, visit this site.
2. Helps Immortalize The Business
Corporate philanthropy is also an excellent way to immortalize your business. The positive impact of your donation to a community or an institution is a subtle way of attracting prospective customers and retaining old ones. A similar undertaking is called brick fundraising. It’s where you encourage other sponsors to support your projects in exchange for their names to be engraved, along with your brand, in the commemorative bricks or finished project. For example, suppose your business raised money for the creation of a leukemia ward for pediatric patients. In that case, you can put an engraved plaque at the ward’s hall entrance that shows your company’s name and the opening date of the new hospital department. The engraved plaque on the entry will showcase your kind gesture as long as the hospital ward you sponsored is open.
3. Contributes to Marketing Efforts And Networking
Corporate giving is an effective way to boost your marketing efforts. Suppose you participate in charitable events or donate your products and services for the community’s good. In that case, there’s a big chance that people will talk about you on social media and other platforms. For one thing, the organizers of the events you sponsored will mention your company or brand during interviews in local newspapers, TV, radio, or podcasts. Posters and advertising materials will also carry your company’s brand announcing your donation or sponsorship.
If you donate to charitable events, you get to do two things. You’re not only getting tax deductions for your donation, but you’re also getting exposure through the advertising efforts of the nonprofit organizations that you’re supporting.
Besides reinforcing your marketing efforts, participating in charitable events can also help with networking and connecting with new customers and business partners. Corporate giving is a good move, especially if you’re a startup entrepreneur. It will allow you to meet influential people in the community who share the same values and support similar causes.
If you don’t have cash, you can still participate in corporate philanthropy by donating your services or products. For example, if you’re a new bakeshop, you can donate cupcakes to a charitable event for the homeless or a fun run activity. Your donation is an opportunity for the public to sample your baked goods and for you to find new customers.
4. Aids In Attracting Top Talent
Offering attractive monetary compensation is a surefire way to get the best and the brightest. But, if your company cannot compete with the salary given out by top corporations, you can still attract the best talents through corporate giving. Many millennials and Gen Zs often factor in a company’s culture of giving when choosing a potential employer. The younger generations of the workforce want to work for companies that they can admire and make them feel proud. They tend to be more loyal to organizations that support social responsibility and corporate philanthropy.
5. Offers Tax Benefits
Most businesses don’t look at tax credits as the main reason for giving to charity. But, it’s a benefit that can be enjoyed when a company gives back to other organizations approved by tax laws. At the height of the COVID-19 pandemic, many governments worldwide have created laws that allowed tax breaks for corporate donations made. The new incentives were meant to encourage more companies to participate in helping their communities during the pandemic.
6. Develops Better Consumer Relationship
A prominent global shoe company has been using charitable activities as part of its business model. Said company has this one-for-one business approach where they give away one pair of shoes for every pair sold. It has worked tremendously well for the company. The success shows that consumers reward corporate giving handsomely. Customers are loyal to and are willing to pay more for products and services that they perceive are not entirely profit-driven, but are socially responsible as well.
7. Provides Positive Impact On The Community
Companies may not immediately see the effects of their contributions in making their community a better place to live in. But, in the long run, having a happy, thriving, and prosperous environment is good for business because it encourages more people to consider living in the community. It also attracts other companies to invest in the area.
Having more people and a bustling business environment will make society more prosperous. Also, prosperity in the community can give inhabitants higher-paying jobs, which can provide them with a better capacity to spend on products and services.
8. Promotes Better Health and Wellbeing
One of the most overlooked benefits of corporate philanthropy is its effect on the participants’ general well-being and health. It includes your employees, the recipients of the donation, the community as a whole, and, most especially, you as a business owner. Giving back is such a positive experience that fosters cooperation to bring about positive social change. So, despite being a small organization, the impact of your generosity can be quite significant in the long run.
The Bottom Line
At first look, corporate philanthropy is an expense. For small startups, donating to charities can have a substantial impact on profit in the beginning. But, in the long run, if your workforce and customers believe that you’re giving back with no ulterior motives, they’ll be more loyal and supportive of your company. Before you know it, you’ll start reaping the benefits of your generous efforts in your revenues.
