Three Reasons To Incorporate Giving Into Your Business Model
One of the greatest rewards of my career is the work that I've done over the years which matched businesses with opportunities to support their community. Whether that has been through a charitable event, a volunteer effort, or educational series like a first-of-its-kind financial literacy course for alternative lending customers, the notion that giving is good business is one of my core values. I was therefore thrilled earlier this year when the community relations strategy that I facilitated was recognized for a national award.
Here are three reasons that giving back should be a cornerstone of your business plan:
1: Community Relations: Charitable sponsorship is a great way to do good while also gaining visibility. It's important that you choose charity partners whose work aligns with your own. If you own a gym or workout facility, for example, find charitable organizations who focus on wellness. When you work with charities that mirror your own company's mission, you show your current and future customers that you really care about your business, your market sector, and your community. Philanthropic businesses are some of the most powerful in the world. By institutionalizing a community support initiative in your business, you position yourself as a leader in your neighborhood and set yourself apart from competitors who may have a less organized approach.
2: Employee Morale: When companies support their communities, workplace culture can improve with increased employee involvement and a positive general attitude. This impacts recruitment, retention, and productivity--all of which directly affect the bottom line of your business. Employees, particularly millennial workers, prefer purpose-driven and socially responsible workplaces. Deloitte’s 2018 Millennials Survey says "Their concerns suggest this is an ideal time for business leaders to prove themselves as agents of positive change."
3: Tax Deductions: According to the Small Business Administration, about 75 percent of small business owners donate some portion of their profits — about 6 percent on average — to charitable organizations each year. "Charitable giving boils down to determining your strategy, properly researching the organization to which you wish to donate and following the IRS’ guidelines. Do those three things, and your small business will be well on its way to giving back."
Think of community support as a part of your overall strategy that expands well beyond a single day or season. If giving is a part of your business model, the benefits are immeasurable.
I am the founder of Synaptic. My mission is to help entrepreneurial leaders make their success repeatable.
I am excited to launch MIX: Marketing Idea Exchange where I will share more award-winning Community Relations insights (including a swipe file full of event planning and PR materials). If you are interested in learning more about what really works for marketing businesses like yours, then I invite you to sign up for your invitation!