Why a Charity Partnership Can Be Good for Business
In an uncertain economy, business owners pay close attention to their bottom lines and their companies' financial health. As a result, now may not feel like the best time to consider donating to charities.
But giving back can be good for business. Depending on your financial situation, investing in your community at a time when many other businesses don't have the extra cash flow to donate to good causes might be an excellent opportunity to make a difference.
Benefits of a charity partnership
Partnering with nonprofits can help you build brand awareness. Charitable organizations are often happy to spread the word of your kindness through their advertising or marketing materials. This publicity can give you exposure to people in your area who may not yet know of your company.
When you get involved in charitable giving, you also create networking opportunities. This could involve meeting members of the organization's board and its volunteers. It could also include attending events and meeting supporters. As you expand your circle, you expose your business to new opportunities.
Partnering with a charity also provides help to those who need it, especially in an uncertain economy. Giving back to your community feels good, and the morale boost it can bring your employees might be the most important benefit of all.
Ways to join forces
While you could simply write a check—and nonprofits need plenty of funds—there are other, more creative ways to form a charity partnership. One way businesses can help their communities is to make an in-kind donation, offering their services free of charge. For example, a salon owner could provide free haircuts to people staying in a shelter, or a restaurant could donate food to a local food bank.
Another way to help is to donate something a charity can use in its fundraising efforts. Many organizations hold auctions to raise money. Your business could provide a product or service that could help bring in donations.
You can also donate a portion of your sales to an organization, either permanently or as part of a promotion. For example, a restaurant could donate 10% of its sales on a certain night to raise money for a school program, or a jewelry store could create a special product and give a portion of the sales to a specific cause.
Consider sponsoring a local event. To stay compliant with COVID-19 regulations, many charities are holding virtual events. It takes funds to promote these offerings. By sponsoring, you can help facilitate the program and get some brand recognition, too.
Another option is to volunteer your time and your team. Close your office for a day and create a team-building experience by having your employees help out at a charity organization. Getting input from your staff can make the activity even more meaningful. For example, you could help clean up a local park or vacant lot in your city, or you could adopt families during the holidays and purchase and deliver gifts and food.
Choosing the right partnership
The charity you choose will be important. You'll want to form a partnership with an organization that serves your target market. For example, it would make sense for a veterinarian to support a local animal shelter. And a tutoring service could get behind a school fundraiser.
Do your research to ensure that the organization holds the same values as your business. Partnering with nonprofit organizations can be one of the most worthwhile activities a business does, especially during a time when so many people need the type of help you can offer.
Financial insights for your business
This information is provided for educational purposes only and should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. First Citizens Bank (or its affiliates) neither endorses nor guarantees this information, and encourages you to consult a professional for advice applicable to your specific situation.