Marti Spencer is executive director of Ronald McDonald House Charities of the Carolinas. Spencer started as volunteer, then the program manager, chief development officer and now executive director. The Ronald McDonald House gives families a place to stay while their children are undergoing treatment in local hospitals.
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It is common knowledge that “giving is good for the soul.” Individuals who volunteer or make contributions to charities generally tend to be happier and more compassionate than those who do not. But what about businesses that give? Are there really any great benefits to a business donating to charities?
Why Donate?
Donating to charities can actually benefit a company’s bottom line. According to research conducted by Dover Management, companies that nurture a culture of philanthropy are more profitable. The study found that companies with a solid link between giving and operating earnings outperformed the Standard & Poor’s 500 index by 3.5 percentage points over five years.
One of the main reasons for this is that the IRS allows businesses to deduct certain charitable contributions from their taxes. So when you give to charities, you are actually getting something in return.
In addition to experiencing greater profit over a certain amount of time, companies that donate to charity also experience an increase in visibility and exposure in the community.
Giving helps increase customer awareness while also creating a good reputation for the company. People are much more likely to support companies that support the community. In fact, many consumers make purchasing decisions based upon a company’s image, and will go out of their way to support companies with a favorable reputation.
A charitable business can often have a profound impact on employee engagement, as well. According to an article from Realized Worth, corporate giving helps employees see themselves and where they fit into a corporation more positively.
The article also showed that offering employees the opportunity to give in the workplace strengthens their commitment to the company and boosts their productivity and ethical behavior. Another benefit is the sense of teamwork and camaraderie that grows between employees as they work together towards a common goal.
How Can You Donate?
While writing a check is still the most common form of philanthropy in the world, there are actually a vast number of ways a business can give to charities that have nothing to do with monetary donations.
Many nonprofits are just as interested in a company’s time as they are in its checkbook. Volunteering or helping sponsor a special event is another important way a business can contribute to their charity of choice.
A company can also help host food or recycling drives in the office. Ronald McDonald House Charities actually collects aluminum tabs from various organizations in order to help support the families they serve.
Things to Consider
Before a business donates to charity, it is important to find the right charity. The most important thing to note is that there is not a one-size-fits-all charity. Where one company may want exposure or recognition in the community, another company may simply want volunteer opportunities for its employees.
A business should take the time to form a committee that will determine what it wants most out of the partnership. That committee would also evaluate what nonprofit would best align with the company’s ideals and employee culture.
A business should also poll its employees to see where their passions lie when it comes to a nonprofit. This is where the structure of a committee would be most effective. Not everyone wants to take the lead, but many will follow. Once the momentum is built, others will want to weigh in on what they feel is a worthy cause.
In addition, a business should request a report to see how donations are being spent. This will help to ensure that the charity a business supports is using donations wisely. All this depends on the charity that is chosen and how that process is measured.
Building a Community
It is important to support services within the community that help the greater good.
A community is built by individuals, and those individuals have businesses. Living within a community where money is re-invested in nonprofits that serve the greater good is the kind of community that would most likely foster positive outcomes for employees, families and future generations to come.
