Giving Money Away to Make Money—The Rationale of Corporate Philanthropy
More and more businesses are giving away money to make money. Sounds counterintuitive, right? Actually, it’s a shrewd business decision. The key, however, is to donate the money to charity. Donating will help your company benefit externally and internally.
External benefits
Good PR
Donating to local non-profits and causes fetches great public relations and your business will be viewed in a positive light.
Builds stronger communities
Donating to non-profits and charities that fight poverty, support education, or support the fine arts, makes your community stronger.
Promotes your brand
Imagine a company that funds the construction of a new exhibit at a zoo. As part of the arrangement, the company gets its name included in the name of the exhibit, i.e. The Mazur Widgets Hippo Pond. People who visit the exhibit will be exposed to your company’s name. Your company’s name will also get exposure via zoo communications that mention the hippo exhibit.
Companies that sponsor events also get extra visibility. For example, T-shirts that are sold or given away at an event will include the company’s logo, which will serve as a walking billboard for years to come.
Online exposure
There’s probably not a non-profit or charity in the world that doesn’t have an online presence. When a company donates or sponsors an event, it gets online exposure.
Internal benefits
Morale
“Donating” your employees to volunteer for a good cause gives them an opportunity to do something different for a day, which they will appreciate. Working together at an event also helps build teamwork. What’s more, employees tend to respect their employers more when they see them doing good.
And did you know that volunteering for a good cause has proven health and happiness benefits? Healthier and happier employees make your company stronger.
Most donations to charities and non-profits are tax-deductible, which is another solid financial reason to give.
Give things away
It’s not uncommon for retail businesses to have inventory lying around that isn’t going to sell. Depending on the items, a non-profit might be able to make great use out of them. In exchange for the goods, ask the non-profit to give your company a shout-out in their social media.
Taxes
Most donations to charities and non-profits are tax-deductible, which is another solid financial reason to give.
Networking
Volunteering often brings business professionals together. Or, attending a gala held by a non-profit is another way for movers and shakers to network.
Bottom line
The bottom line about charitable giving is that it helps a company’s bottom line. And society!