Philanthropy, or charitable giving to worthy causes on a grand scale, benefits businesses, their owners and employees. This differs from traditional charitable giving because philanthropy encompasses more significant projects with higher dollar amounts. While usually associated with tax breaks and right-offs, some benefits you can receive from charitable actions include building your brand, boosting your health and bonding with your community and employees. Plus, you are helping to make a difference in the lives of those directly affected by the nonprofit or project you partner with.
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Building Your Brand
One of the tenants of brand building is fostering positive relationships with customers. You want customers to feel warm and fuzzy when they see your logo or hear about your next big project. Some corporate philanthropy partnerships are so enshrined with the brand that customers are more likely to associate charity events with the company than product lines. Philanthropists like Kirk Chewning Cane Bay Partners know that spreading good cheer through charitable works can do more for customer recruitment and retention than most advertising campaigns by associating your brand with helping the cause.
Improving Your Business Relationships
Working with a nonprofit organization to host or sponsor charity events, participating in community service projects, and even charitable giving drives help build relationships with your business partners and customers in unexpected ways. Not only do these philanthropic actions bring positive attention to your brand, but they can do so by showing your business partners, communities and customers that you are passionate about improving the world in some way. These benefits can most clearly be seen when you give locally because the lives of your employees and customers will be directly affected.
Boosting Your Health
Studies have shown that those who regularly engage in charitable giving of time or money can reduce stress levels, improve blood pressure and even live longer. The short-term health benefits of philanthropy include the mood boost of doing good and the physical exercise often involved in drives, events and projects. These benefits can be most prominently seen in the increased enthusiasm you show in the days following a philanthropic act.
Involving and Engaging Employees
Employees are more likely to be engaged in their jobs when involved in aspects of company culture, such as philanthropy projects with coworkers and their communities. Engaged employees are more productive and less likely to seek other employment, meaning that the right corporate giving projects can also boost your productivity. Some of your best ideas for projects can come from the nonprofits your employees support in their free time, keeping them invested in the projects and the company.
While it can be easy to see philanthropy, especially corporate philanthropic projects, as a tax break, there are many more benefits that charitable giving on this scale can provide to your company. Involving employees in these projects keeps them more engaged at work and in the community. When you partner with nonprofits and your business partners for a charity project, you can also improve your branding and boost your relationships with those around you.