Running your own business has many advantages, and one of them is the ability to navigate the culture of your business environment. Businesses don’t thrive using the same strategies from years past. As you look around, you might notice that more businesses customize their branding around their charitable giving than ever before.
Caring Network, as a Chicagoland non-profit, partners with many businesses in the area through our charitable giving program. Through the generosity of these corporations, we are able to impact women who are facing unplanned pregnancies and save lives. To learn more about how your business can become involved, check out our Business Sponsorship page.
The phrase, “Generosity is the new marketing,” began gaining traction when research revealed that millennials represent $2.45 trillion in spending power. And 70 percent of millennials (those born between about 1981 and 1996) report they gravitate toward and spend more on businesses that support causes.
Many business owners have learned the benefits of creating a company culture that supports charitable causes. Here are 5 reasons to consider why your business should support a nonprofit.
1. Boost Employee Morale and Attract Exceptional New Employees
In 2020, millennials make up about half of the U.S. workforce, and by 2025, millennials are expected to comprise 75% of the global workforce. Millennials work differently than the Baby Boomers did, and we need to embrace that.
Millennials like technology, collaboration, flexibility, and social causes. They want to participate in things that matter to them. In 2016, the Deloitte’s Volunteer Impact Survey results revealed that when employers create a culture of volunteerism in the workplace, it can:
- Boost employee morale
- Create a positive workplace culture and strengthen bonds between employees
- Attribute to employees who are gratified and loyal
- Improve brand perception
- Develop leadership skills among employees
Not only can you boost employee morale and attract exceptional new employees when your business supports a nonprofit, but you can also appeal to new customers.
2. Appeal to New Customers and Gain Support of Existing Customers
When you hear the names of certain companies, can you automatically think of the causes they support? TOMS Shoes? Warby Parker? Walgreens’ Red Nose Day? Each of these companies allows their customers the opportunity to participate in giving, and consumers want to spend their money with businesses that support charities they care about. To thrive as a business owner, it’s important to embrace the concept that nurturing a philanthropic business culture is no longer just a good idea, but it’s necessary.
We know that millennials spend trillions of dollars, and we also know they want to participate in things that make a difference in the world, including where they spend their money.
According to Horizon Media’s Finger on the Pulse study, 81% of millennials expect companies to make a public commitment to social responsibility, including supporting nonprofits.
There are four major qualities that millennials want to see in businesses they are spending their money with:
- They participate with businesses that are invested in improving the community and partnering with those who work towards solutions to social problems.
- They participate with businesses that actively make a positive impact on the world.
- They participate with businesses to be open about their support of nonprofits and causes.
- They like businesses that allow them the chance to participate in the giving of their time or money.
None of this means you need to center your business around millennials. If that were the case, you would have to switch gears as Generation Z gains more influence. But keep in mind that about 91% of all global consumers, regardless of their defined generation, say they expect companies to address social and environmental issues., according to a study by Cone Communications.
3. Networking Opportunities within Your Community
As you give back to your community and stay plugged in, you will meet more people. When you volunteer on boards, committees, attend meetings, and events, you get to know like-minded people who also care about your community. Your business will steadily earn a reputation for being one that cares about people, and that’s important as a business owner.
Think about times when you have asked for business referrals, or people have asked you for one. Or how often you see requests for business referrals on social media like, “Does anyone know of a trustworthy petsitter?”
People you get to know will not only become customers but will also recommend your business to their friends and family. Business owners like you know that referrals customers are often the most loyal customers.
4. Your Business Benefits Financially
You start a business for many reasons, and one of them is to create a livable income for you and your family. You can’t do that if your business isn’t profitable, so it’s good to look for ways to increase your bottom line. If you can do that by supporting nonprofits, everyone benefits. Besides, 90% of consumers trust businesses that address social and environmental issues by supporting nonprofits. Consumers also tend to patronize businesses they trust, which leads to business growth and increased profits. It’s a win for everyone. There also are less obvious ways your business benefits financially as well, including:
- Tax deductions
- Increased employee productivity
- Free positive publicity
5. It Benefits Your Community
All the reasons we have discussed here regarding why your business should support a nonprofit are helpful, but probably the best reason of all is that it benefits your community. You can always write a much-needed check, but when you and your staff get out into the community to support nonprofits, it builds valuable connections. As a team, your business can consider:
- Participating in a 5K
- Providing services at an event (if relevant)
- Volunteering together at a local charity
- Collecting tangible needs for a charity
- Selling tickets to/attending a fundraising event
We have discussed five of the many good reasons why your business should choose to contribute to a nonprofit. When you cultivate a philanthropic workplace culture, it can boost employee morale, attract exceptional new employees, gain customer support, create networking opportunities, increase profits, and best of all, benefit your community. Support nonprofits. It’s good for business, and it’s good for your community.
At Caring Network, we are incredibly grateful to our faithful business sponsors. If you would like to learn more about how your business can realize the benefits we’ve discussed while supporting Caring Network’s life-saving work, contact Denise at email@example.com. We look forward to partnering with you!