"We make a living by what we get, but we make a life by what we give." This famous Winston Churchill quote is usually associated with individuals giving back, but have you ever stopped to considered how corporate philanthropy affects a company's life?
It's no small secret that corporate philanthropy, a longstanding tradition in Central Kentucky, is a key component of a healthy and viable community. But what many don't consider is how corporate charitable giving helps improve a company's bottom line.
According to data from a recent Cone/Roper Cause Trends Report, 76 percent of consumers indicate they would switch brands or retailers to one associated with a good cause, when price and quality are equal. In fact, the external benefits of corporate giving seem endless. Companies that offer corporate giving typically see improved customer loyalty, enhanced reputation and standing in the community and increased positive name recognition and brand awareness. Charitable giving allows for new and enhanced relationships with key community leaders and
officials, beneficial business-to-business relationships with nonprofits, a reservoir of goodwill within the community and healthier, more livable and economically stronger communities.
The same report showed that 87 percent of employees at companies with philanthropic programs feel a stronger sense of loyalty to their employer. Indeed, there are numerous internal benefits of corporate giving. A company's philanthropic ideals, which many times are found on the corporate website, give the company a competitive advantage in attracting and retaining employees. The philanthropic philosophy lends to leadership and development opportunities for employees, exposure of senior staff to new ideas, points of view and important social movements, and improved internal communication and common purpose.
If your company doesn't already have a corporate philanthropy program, how do you start one? If you own a family business or are an officer of a corporation, there are at least four options for you to consider for your company's charitable giving: a corporate giving program, a corporate foundation, a corporate donor advised fund, and employee matching and non-cash giving.
Many corporations operate an annual giving program to make charitable grants part of their annual budgets. Small business owners can blend their family business with family philanthropy by channeling their charitable support through their company. This is usually directed by the senior management and/or ownership of the company.
A company may also wish to create a corporate foundation as an independent, tax-exempt private foundation. A corporate foundation is usually started with a single gift that can become the endowment, to which the company can add future contributions. The foundation's officers are usually the company's owners and key executives. At some companies, employee committees make giving recommendations about projects they believe are worthy of support. Just be sure you do your homework - - the corporate foundation is subject to the same rules and regulations applicable to other private foundations.
In addition to awarding cash grants to charity, companies often offer to match their employees' gifts of cash and volunteer time to nonprofit organizations. Many companies assist and encourage their employees to give by organizing workplace giving programs and by facilitating payroll deductions for employees' charitable gifts. Companies sometimes match gifts that their employees make through workplace giving programs.
United Way of the Bluegrass and LexArts have long been leading partners with many local businesses in this work. United Way works to advance the common good by focusing on education, income and health in our local community. LexArts is a nonprofit community organization that works for the development of a strong and vibrant arts community as a means of enhancing the quality of life in Central Kentucky. Both of these organizations work with various companies to offer payroll deduction as a simple yet effective and efficient way for employees to give back through their workplace.
In addition to cash contributions, some companies donate their products to charity - often referred to as in-kind gifts - or offer their services on a free pro-bono basis. Many companies have products that can be used by nonprofits, including products from current inventory, obsolete merchandise, returned or slightly damaged goods, computers, or office furniture and equipment. Gifts in Kind, a program sponsored by United Way, provides an outlet for local companies to donate usable items for nonprofits. Nonprofits can also benefit from services provided by a company or its employees, such as printing, legal representation or graphic design.
Another important way to help your community is the gift of time. Nonprofit organizations are in great need of capable, committed volunteers, and your company's endorsement of volunteer contributions can leverage the financial contributions you make to an organization.
So, what are you waiting for?