It’s no secret that some of the world’s biggest corporations make philanthropic contributions regularly, but have you ever wondered why, or whether doing so could have any benefit for your business, which may not be an Amazon or Microsoft yet?
Charitable contributions can have big benefits for businesses of all sizes. Approximately 75% of small business owners in the U.S. donate to charity at an average of about 6% of their annual profits. Doing so has numerous benefits, both financial and altruistic.
Let’s take a look at some of the ways a company of any size can benefit from partnering with nonprofits and making charitable contributions.
The most obvious benefit of partnering with nonprofits is for tax incentives. We’ve all heard about the generous tax breaks businesses can receive when making charitable contributions, and even small businesses can receive significant tax breaks for qualifying contributions.
Be sure to check with a tax professional or accountant to be sure you’re meeting the IRS’s conditions for charitable contributions if you’re interested in tax incentives.
An incredible 89% of U.S. consumers say they are more likely to have a positive image of brands that lead with purpose. 70% of those consumers say they want to know the brands they do business with are doing their part to support social and environmental causes.
And it’s not just in the U.S. where consumer sentiments are shifting in favor of purpose-driven companies. 67% of people worldwide say they feel it’s important that they support brands that make a positive contribution to society.
When customers know you’re doing your part to make the world a better place, they’re more likely to become repeat customers and become loyal brand ambassadors that spread the word about your company. And we all know that word-of-mouth is one of the strongest forms of marketing.
Employees of companies who regularly make charitable contributions are five times more likely to remain with their company, so it provides a huge boost to retention.
It can also boost overall morale and even help employees form stronger bonds with their co-workers when they’re included in charitable activities like fundraisers or volunteer programs.
Another benefit that many companies don’t think about is the impact they can have on their local communities. Giving back locally can help get homeless individuals off the streets, save animals in danger of euthanization, help at-risk youth find a brighter future, and so much more.
And this can have a direct impact on your business, too. Some of the individuals you help may end up becoming one of your biggest brand ambassadors or most loyal customers one day. Money can’t buy loyalty, but showing someone you care certainly can.
If you partner directly with a specific organization, your company may be able to benefit from a direct promotion to that organization’s current base of supporters. Many nonprofits have sizeable social media followings or email lists and might be willing to call attention to your company via those channels in exchange for your support. It’s mutually beneficial, since the more business the organization can drive to your business, the more you’ll be able to donate, and you’ll also have the opportunity to call attention to the nonprofit, too.
Perhaps the most important benefit is simply knowing you’re doing the right thing. Giving back to your community is a great way to show appreciation to the very people who helped make your business into what it is today, and the feeling of knowing you’re making a difference is priceless.
If you’d like to find out how your business can start making a difference by partnering with nonprofits, visit Aspired. There are no upfront costs, and you only make a donation when someone chooses to support your partner nonprofit at checkout.