Why Businesses Want to be Involved in Non-Profit Organizations.

Why businesses want to be involved in non-profit organizations.

When Businesses Give or Include Cause Marketing in their Business Development Plan, They Get More Than a Tax Deduction

When Businesses Give or Include Cause Marketing in their Business Development Plan, They Get More Than a Tax Deduction

 

There are a growing number of benefit corporations in the USA, including in the state of Virginia, who are dedicating a portion of their profits to benefit a cause. Other corporations make executive decisions to get involved in community giving, or ‘cause marketing,’ for both marketing and branding purposes. Targeting a non-profit organization (NPO) in the community giving provides a personal ‘feel-good’ result, and the provider company benefits more than the tax-deductible write-off.

A company develops a competitive advantage from the action of giving because of the broader visibility to potential clients related to the charity.  Who doesn’t know Target provides local schools money for education? Who isn’t aware of the US Marine Corps collecting Toys-For-Tots for Christmas?

Cause marketing increases brand awareness for the contributing business, but also the NPO.  The Chesapeake Regional Health Foundation has an annual ‘Bra-Ha-Ha’ contest (since 2008) for the most outrageous, funny, or thought-provoking artistic bra to raise money for women unable to afford mammograms or breast-related services. The company and a NPO can piggy-back each other’s marketing efforts, including: public recognition, website backlinks to their business websites, event exposure in banners, tables, advertising, and promotional items (giveaways). This provides additional exposure for a business to a new target market of potential customers

Higher employee retention is another benefit for cause marketing.  It instills a pride and loyalty to the business – especially when a company asks the employees what NPOs they want the business to sponsor. Some businesses allow, and even encourage, a volunteer day to employees.  Some companies even pay the day’s salary for the employee for the volunteer work. What a great recruiting highlight to brag about!

Another opportunity that presents itself when a company sponsors a charity is the increased and new strategic relationships developed from new business relationships.  Imagine joining the Board of Directors for a small charity and finding other members of the board know folks for which the company has been trying to obtain introductions?

In some cases, while the company may be heavily involved in one industry, the NPO sponsored may have access to or knowledge about technology, methodologies, or processes that may open the company up to new ideas and processes.  It’s a two-way street, the PC may teach the charity some new tricks, or provide methodologies that reduce manual labor and increase funding opportunities.  Providing the technical expertise in training and educational meetings teaches members of the workforce new skills they can take back to the NPO or their own workplace.

The most un-recognized benefit of a business being involved in cause marketing and sponsorships is when a junior- or middle management employee develops new leadership skills, at no risk or major overhead cost to the business. Employees whom volunteer work for a NPO actually gain a viable platform to learn how to be a leader, team-member, and liaison between participants towards an achievable objective.  It provides a vital bullet for their resume, not just for volunteer activity, but also for increased workplace skill sets.

Businesses can gain business exposure in donating time, funds, and volunteer efforts to non-profit organizations. Find a cause beneficial to the businesses’ image and target market, as well as the employee’s hearts.  Research the charity. What percentage of funds and efforts go directly to the beneficiaries?  Sponsors should look for volume (If $100 going to one beneficiary versus $2 going to 50 beneficiaries, pick the charity with more recipients.). If the larger known NPOs have tens of thousands of dollars from large corporate sponsors, the business name could be lost in the tiny print at the end of a long list.  Look for relatively new (three years or more in existence), growing, and niche charity.

The trick is not to be a small fish in a large pond (large and well-known charity), but to be a big fish in a small pond. The business will gain more exposure, and validation, to a more targeted crowd who will see the brand name because it stands out more as a supporter.

 

Dawn Boyer, Ph.D., is the owner of D. Boyer Consulting – providing resume writing, social media management, business development, and human resources consulting. Reach her at: Dawn.Boyer@DBoyerConsulting.com or http://dboyerconsulting.com.

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Why Businesses Want to be Involved in Non-Profit Organizations.

Why businesses want to be involved in non-profit organizations.

When Businesses Give or Include Cause Marketing in their Business Development Plan, They Get More Than a Tax Deduction

When Businesses Give or Include Cause Marketing in their Business Development Plan, They Get More Than a Tax Deduction

 

There are a growing number of benefit corporations in the USA, including in the state of Virginia, who are dedicating a portion of their profits to benefit a cause. Other corporations make executive decisions to get involved in community giving, or ‘cause marketing,’ for both marketing and branding purposes. Targeting a non-profit organization (NPO) in the community giving provides a personal ‘feel-good’ result, and the provider company benefits more than the tax-deductible write-off.

A company develops a competitive advantage from the action of giving because of the broader visibility to potential clients related to the charity.  Who doesn’t know Target provides local schools money for education? Who isn’t aware of the US Marine Corps collecting Toys-For-Tots for Christmas?

Cause marketing increases brand awareness for the contributing business, but also the NPO.  The Chesapeake Regional Health Foundation has an annual ‘Bra-Ha-Ha’ contest (since 2008) for the most outrageous, funny, or thought-provoking artistic bra to raise money for women unable to afford mammograms or breast-related services. The company and a NPO can piggy-back each other’s marketing efforts, including: public recognition, website backlinks to their business websites, event exposure in banners, tables, advertising, and promotional items (giveaways). This provides additional exposure for a business to a new target market of potential customers

Higher employee retention is another benefit for cause marketing.  It instills a pride and loyalty to the business – especially when a company asks the employees what NPOs they want the business to sponsor. Some businesses allow, and even encourage, a volunteer day to employees.  Some companies even pay the day’s salary for the employee for the volunteer work. What a great recruiting highlight to brag about!

Another opportunity that presents itself when a company sponsors a charity is the increased and new strategic relationships developed from new business relationships.  Imagine joining the Board of Directors for a small charity and finding other members of the board know folks for which the company has been trying to obtain introductions?

In some cases, while the company may be heavily involved in one industry, the NPO sponsored may have access to or knowledge about technology, methodologies, or processes that may open the company up to new ideas and processes.  It’s a two-way street, the PC may teach the charity some new tricks, or provide methodologies that reduce manual labor and increase funding opportunities.  Providing the technical expertise in training and educational meetings teaches members of the workforce new skills they can take back to the NPO or their own workplace.

The most un-recognized benefit of a business being involved in cause marketing and sponsorships is when a junior- or middle management employee develops new leadership skills, at no risk or major overhead cost to the business. Employees whom volunteer work for a NPO actually gain a viable platform to learn how to be a leader, team-member, and liaison between participants towards an achievable objective.  It provides a vital bullet for their resume, not just for volunteer activity, but also for increased workplace skill sets.

Businesses can gain business exposure in donating time, funds, and volunteer efforts to non-profit organizations. Find a cause beneficial to the businesses’ image and target market, as well as the employee’s hearts.  Research the charity. What percentage of funds and efforts go directly to the beneficiaries?  Sponsors should look for volume (If $100 going to one beneficiary versus $2 going to 50 beneficiaries, pick the charity with more recipients.). If the larger known NPOs have tens of thousands of dollars from large corporate sponsors, the business name could be lost in the tiny print at the end of a long list.  Look for relatively new (three years or more in existence), growing, and niche charity.

The trick is not to be a small fish in a large pond (large and well-known charity), but to be a big fish in a small pond. The business will gain more exposure, and validation, to a more targeted crowd who will see the brand name because it stands out more as a supporter.

 

Dawn Boyer, Ph.D., is the owner of D. Boyer Consulting – providing resume writing, social media management, business development, and human resources consulting. Reach her at: Dawn.Boyer@DBoyerConsulting.com or http://dboyerconsulting.com.

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