Why Your Business Should Support Nonprofits
Businesses that support nonprofits make a positive impact on their communities and align their own values with those of not-for-profit organizations. Forging strong ties with local nonprofits provides several benefits for companies, their employees, and the places we all live, work, and play. From nonprofit tax deductions to increased employee satisfaction, the benefits of supporting nonprofits have a big impact on everyone involved.
How Donating to Nonprofits Benefits Your Business
There are financial, brand, and community benefits to supporting nonprofits. For most business owners, choosing a giving partner achieves a mix of personal goals and aligns with the company’s overall vision.
Attract and Retain Talent
With low unemployment and new work priorities, having a philanthropic footprint can attract and retain talented works. That’s especially true for Millennials, who represent $2.45 trillion in annual spending power and will comprise over 75% of the labor force by 2025. Celebrating nonprofit giving and a culture of volunteerism has a real impact on a company’s bottom line. A 2016 study found that these programs can:
Improve employee morale
Improve workplace culture
Improve employee retention
Develop leadership skills
Attract and Retain Customers
Close and relevant relationships with nonprofits also introduce brands to new audiences. More than 70% of Millennials make purchasing decisions based on a brand’s reputation and the cause it supports. These types of relationships should reflect both the brand’s industry (it makes sense that local bike shops support Norte Youth Cycling) and the priorities of the brand’s employees; younger companies tend to support nonprofits with strong youth programs, for example.
Over time, lasting relationships with nonprofits can make the brand almost synonymous with the mission it supports, which greatly enhances brand perception and reputation.
High-impact Networking
The close collaboration between nonprofits and their community partners creates an effective and enriching network of like-minded individuals. From board meetings to volunteering events, there are countless opportunities to connect with a wide range of businesses, leaders, and new business ideas. The nonprofit itself can help make those connections and help company leadership make impactful connections.
Improve Your Community
Nonprofits like Norte Youth Cycling and thousands of others drive real change in the communities we serve. Corporate and small business donations fuel our programs, and they’ve helped other elements of our region grow as well. Without the support of businesses, not-for-profit organizations wouldn’t be able to address housing needs, improve food security, provide life-saving mental health services, and countless other programs that bridge local, state, and federal service gaps.
Tax Deductions
Donations to nonprofits do have a financial benefit, of course. While there are several exceptions and tax regulations change, most businesses can deduct charitable donations from their federal and state taxes. These donations can help small businesses balance their taxable revenue while making a positive impact in their communities. To maximize these benefits, check for regulatory changes from the IRS or work with a trustworthy professional business accountant.
Can My Business Support Nonprofits?
Of course! Any and every donation makes a positive impact, but there are more ways to get involved.
Consider making a monthly donation to the nonprofit of your choice to mitigate the expense of a one-time donation.
Volunteer your time at local events. Some employees offer up to 20 hours of paid volunteer time to their staff each year – adjust your offerings to align with your budget and priorities.
Host events free of charge, if possible. Access to a free venue makes a nonprofit fundraiser much more effective. If you have the space, offer free or discounted use of your space to charitable organizations.
Supporting Nonprofits Just Makes Sense
There are many reasons to support nonprofits in your community and around the world. Get your leadership team together to evaluate your brand’s priorities and identity, then explore nonprofits that align with your values. Your support matters; learn more about Norte’s mission and learn about becoming a Business Champion today.