Article

Craft a Giving Strategy for Your Business

Craft a Charitable Giving Strategy, While Improving Your Bottom Line

How can you give back to your community while improving your bottom line? Regardless of your company’s size and resources, you can find a way to make a difference in your community. This article will give you a few tangible ideas to start you thinking about your own giving strategy.

November 16, 2023
Craft a Charitable Giving Strategy, While Improving Your Bottom Line
Important Disclosure: Content on our website and in our newsletters is for informational purposes only. The information provided may (or may not) directly apply to your situation. We recommend that readers work directly with a professional advisor when making decisions in the context of their specific situation.

Regardless of size, companies benefit when the community in which they do business thrives. For entrepreneurs, giving back to the community is more than just a charitable act; it makes good business sense. If you have been reluctant to get involved in philanthropic activities, fearing it could cost too much and distract your employees, think again. Community involvement can strengthen your company directly by bringing in new business and indirectly by enhancing your company’s reputation and improving employee morale.

The Possibilities

Crafting a charitable giving strategy for your business involves more than just selecting a worthy organization and writing a check. While you may get a tax deduction on cash donations, your business may get considerably more out of community involvement, especially if you carefully consider the causes you want to support and the organizations that would make appropriate partners for your company.

The type of charitable giving you choose may be influenced by the type of business you operate, the interests of your employees, and the needs of the community. Whether your company produces goods or provides services, organizations within your community could likely benefit from your support. A restaurant or caterer, for example, could choose to donate leftovers to a soup kitchen or homeless shelter. A construction company could donate materials and labor for building a community playground or renovating a youth center. Involvement in such worthy initiatives may be very effective in making a positive influence in the community.

Getting the Word Out

To maximize the impact of your charitable efforts, your company (or the organization your company is helping) may choose to distribute a press release or inform the local media about upcoming events and activities. This often results in free—and positive—publicity for your company. It may also be possible for the charity to help increase your company’s visibility through its marketing resources. When partnering with a nonprofit, you may be able to arrange for your company’s name and logo to appear on the organization’s advertising materials and website.

Benefits to Your Company

Ongoing charitable involvement can help attract new customers and engender loyalty within your existing customer base. A company that donates a portion of its profits to worthy charitable causes may gain a competitive advantage. It can generate goodwill among customers and enhance your company’s reputation to be associated with important causes in your community, such as helping abused children, improving literacy skills, or finding homes for abandoned pets.

Employee morale can also be improved through charitable initiatives. When deciding which causes your business will support, be sure to include your employees, especially if you want them to participate in events. By asking your employees what causes are close to their hearts, you may discover that some have personal passions that can prove valuable to a charitable campaign. Providing paid time off for charitable work may be considered a valuable benefit by your staff. Having your employees volunteer as a group can serve as a positive team-building exercise, as well as provide a welcome break from the work routine.

Another benefit of giving back to the community is the potential for networking with other local businesses. Through professional clubs or your local chamber of commerce, you may meet other business owners who may want to cooperate with you in organizing events. By participating in charitable events, you and/or your employees may forge valuable friendships with other business owners, staff, and the media.

Regardless of your company’s size and resources, you can find a way to make a difference in your community. Even minor gifts—such as allowing your facilities to be used for a school event or donating used equipment—can go a long way toward making your community a better place to live and do business. And that’s the bottom line.

Other content you may like

  • MAR Student of the Market

    Stock Volatility Remained Low

    March 27, 2024
    Tracking historical data, by the number of single day stock market returns of +/- 2% or more, shows that lower volatility has typically resulted in stronger returns. This overview also looks at past stock trends following a Fed rate cut, S&P 500 milestones for all-time highs, the strength of Mutual funds, EFTs and more.
    Read this Article
  • Christmas Shopping Lessons for Investors

    December 7, 2021
    There’s a generational cycle that is both fascinating and important to understand as an investor. Find out why it’s important to ask yourself, “Is that investment an innovation or an improvement on an existing product?” It could explain why today’s business environment seems flush with billionaires younger than 30. It’s also helpful when you’re deciding to invest in the right new product – Facebook and not MySpace for instance.
    Read this Article
  • Student of the Market

    Bond Returns After A "Worst" Start

    June 23, 2021
    2021 had the 4th worst start for bonds. This Student of the Market looks at how “Worst Starts” bounce back historically. Combine this with the stats on the 3rd best start for value stocks. Also included are insights for cash on the sidelines, equity fund assets, investing signals, and recent inflation basics.
    Read this Article
  • hope with peaceful color background and dandelion blowing in the wind

    Hope and Life after COVID-19

    April 4, 2020
    Hope and Life After COVID-19 There is little doubt that a time will come when we say the worst of is behind us, but life after COVID-19 will likely look much different. Few events are as truly worldwide as this or have had such a rapid impact on shaping our daily lives and routines.  Our […]
    Read this Article
  • The link you have selected is located on another server. The linked site contains information that has been created, published, maintained, or otherwise posted by institutions or organizations independent of this organization. We do not endorse, approve, certify, or control any linked websites, their sponsors, or any of their policies, activities, products, or services. We do not assume responsibility for the accuracy, completeness, or timeliness of the information contained therein. Visitors to any linked websites should not use or rely on the information contained therein until they have consulted with an independent financial professional. Please click “Continue to Link” to leave this website and proceed to the selected site.
    phone-handset