It’s no secret that local companies donate to local charities and organizations often. However, could it be possible that all of this giving has provided good karma for these companies? According to Ernst & Young and the Fidelity Charitable Gift Fund nearly 62% of business owners claim that giving charitable donations has made their companies more successful in the long run. And this has nothing to do with the tax benefits that come with donations. This entirely has to do with the increase of foot traffic, rise in revenues and customer loyalty.
Overall, it may be more important to make donations than to pay for advertising. Customers seem to have a higher respect for companies that support charities, and the results speak for themselves. However, you can’t just donate to every foundation – otherwise you’d end up broke! Choosing the right charities and foundations is a very important part of spending this charity money. For instance, a woman owned company may donate to a feminist charity of some sort. These two go hand-in-hand and make sense for the company and the type of business you’re looking to draw in. They are more likely to gain business from those involved in the charity.
The best part of donations is that most business owners do not donate to better themselves or their company; they do it because they want to help. Imagine, you donate to a foundation that needs your help, you feel better about yourself for helping their cause and in return you receive more business for your company. This is the beautiful cycle of karma.
Listening and helping the charities and events that are important to your customers can also help draw in business. Ernst & Young and the Fidelity Charitable Gift Fund said that 80% of customers said they would switch brands if that brand was associated with a good cause.
Supporting locally can be the best way to reap benefits of a small business. Locally owned businesses have a step-up on the other larger businesses. If you are directly helping your community then your community will reach out to your company to help back. Not to mention the loyalty that goes along with this.
Next time you think about putting that $100 toward advertisement for your company maybe try and donate it instead. You’ll never know the potential benefits if you don’t at least try.