One of the Core Values at Center for Victory is to ‘Be Like Fred’. If you’re not from Pittsburgh, or just unsure of who we mean when we say Fred, it’s Fred Rogers, of Mr. Rogers’ Neighborhood. What we mean by ‘Be Like Fred’ is to be a servant leader, have a heart for people, and be a good neighbor.
One way businesses can be more like Fred is through charitable giving. For some business leaders, it may seem counterintuitive to give money and time away, but involvement in charitable causes can actually be a good business strategy. Millennials are driving the social responsibility movement, with 70 percent of them reporting that they’ll spend more with brands that support causes (Omnicom Group's Cone Communications). Given that millennials represent $2.45 trillion in spending power, the notion of “giving back” may be very powerful for your company’s sales, not to mention, it’s overall purpose.
While there are many benefits to corporate giving, here are 4 that you may want to consider.
When organizations get involved in charitable giving, they have a unique opportunity to take an active interest in their own community, which can lead to a huge boost in employee morale. If a company chooses to be charitable, workplace culture can improve with increased employee involvement and a positive general attitude. According to a 2016 Deloitte study on volunteering, millennials were “twice as likely to rate their corporate culture as very positive” if their company participated in workplace volunteer activities. Employees respect organizations that care for their community, it makes them feel good, and feel as though they are part of a bigger cause.
Philanthropic businesses are some of the most powerful in the world. For example, Apple matches employee donations, and has donated more than $78 million to charities. Charitable sponsorship is a great way to do good in your community, while also increasing market exposure. Donations put your company's name out there, especially if you sponsor some kind of event. Just make sure that the event or charity aligns with your own company's goals.
This is one of the most immediate benefits of corporate donations. You may not instantly see how your contribution benefits your community, but you will quickly notice the tax savings. Of course, businesses shouldn't donate with the sole expectation of financial gain, but there are fiscal rewards for helping a charity in need. Businesses can usually receive tax deductions from sponsoring charities or events, but you should make sure to follow the rules and go about the process in the right way in order to comply with all tax requirements.
It’s Good for Your Community
Charitable contributions have numerous benefits, but the most important one is obvious: you should give back to your community. Charitable donations help better your community, and the public will notice if a company is making a real effort to improve its surroundings.
There are many reasons why your company should make charitable donations, and any reason that motivates you is a good one. Donating to charities can help change your business and work culture. It can also have a dramatic impact on others. So pick a cause that you believe in and make your community a better place to live. It's good for business.