If you’re a small business owner, there’s a pretty good chance you have an abundance of three traits: ambition, work ethic, and heart. Sponsoring a local charity is a great way to showcase those qualities and grow your business! If you’re wondering whether your small business should sponsor a local charity, here are three reasons why we think it’s a great idea.
1. Supporting a local charity improves company culture
Could your employees use a morale boost? Studies show that companies who organize charitable opportunities for their employees enjoy an improved company culture. One article by Entrepreneur cites company-organized charitable events as the key to significantly improved company engagement: “In organizing and offering charitable opportunities for employees, companies can create strong traditions, which promote a sense of pride and ownership among employees.”
Why should you support a local charity instead of a bigger, national charity? There are tons of great national organizations, of course, but in general, local organizations are more likely to actually need your support. Giving back locally also allows employees to feel that the company is making a difference in a way they can easily see and understand as it relates to them personally. When you show your employees that your company has strong values, you help promote a corporate culture of positivity and accountability.
2. Charitable giving comes with financial benefits
While financial motives shouldn’t be your primary reason for giving, boosting your company’s bottom line isn’t a bad bonus! Charitable giving offers a few financial benefits. For starters, people love supporting companies that care. When you partner with a local charity, you’re showing your community that you care about them while also increasing brand awareness and creating marketing opportunities. Don’t believe us? Check out what Balance Small Business had to say about the increase of corporate philanthropy and the success of companies like TOMS.
The financial benefits don’t stop at marketing opportunities and improved public opinion—companies who give charitably also enjoy tax benefits. Every state’s tax rules vary a bit, so be sure to check your state’s laws, research charities to find a reputable 501(c) organization, and ensure your IRS documents are in order before filing in order to avoid unwanted attention from the IRS.
3. Partnering with a local charity builds community
When your community trusts you, there’s no limit to the trust and relationships you can cultivate. You’ll feel great about creating positive change in your community, and members of the community will feel great about supporting your business. Whether you’re building a new business or you’ve been a part of the local community for years, now is the best time to take an active role in your area.
Wondering how to choose the right charity to support?
We get it—there are so many wonderful local organizations out there that choosing which one to support can feel impossible. A great place to start is simply opening the conversation to your employees. What organizations do they feel strongly about personally? You might also consider asking yourself whether there’s a certain sector where your business is likely to make the biggest impact. Finally, check with your local Chamber of Commerce to see whether they partner with any local charities—connecting with charitable organizations through mutual connections ensures that you’re partnering with a 501(c) whose mission you trust and support.
Ready to get started? Check out our article featuring five ways to get your team involved in giving back.