Are you a small business that thinks you need to be a large corporation in order to have an effective corporate giving portfolio? As a small business, there are many advantages for being a smaller company when it comes to corporate giving. In support of Small Business Week, during October 15-21, we wanted to weight-in on the benefits of giving back for small businesses.
Small businesses without a community relations manager may find themselves struggling in this area. As recent studies show that philanthropic nature is shifting from something that is a good idea — to something that is mandatory for success in business, the pressure for small businesses to give back can seem daunting. However, as a small business — the rewards and the advantages are definitely worth the investment. In this case, being small can be an effective endeavour which often times leaves a bigger impact for all those involved.
89% would rather buy from a company addressing social or environmental issues over one that is not.
Advantages of Corporate Giving for a Small Business
Buy-In from Employees of a Small Business is Attainable
One of the challenges with corporate giving is being able to create enthusiasm and buy-in from staff. As we indicated in our post about developing employee engagement,“companies with engaged employees see 26% higher revenue per employee, 13% higher total returns to shareholders and a 50% higher market premium.”
Employees of small businesses have the added bonus of being able to participate in the initial conversations around your giving which is very important for success. Conversations are less likely to happen with all staff if you’re a larger business with 150+ employees and, not to mention, in various locations. Use the size of your business to your advantage when it comes to giving. The power isn’t in numbers, it’s about the collective team effort that you can create within a small but mighty team.
63% are hopeful business will take the lead to drive social and environmental change moving forward.
Your Network Will Feel Connected to the Cause
Many small businesses choose to invest their philanthropic efforts in the communities they do business in. Small businesses surveyed showed that 90% of donations support local causes. This makes sense when a small business’ success can be dependent on the close ties within its local community. As a small business, this means you’re able to choose causes and non-profit partnerships that are impacting the people that matter most to your success. This not only affects the employees living in that community, but it also affects your clientele. Have a listen to what matters to your network, this will help determine how to choose the right cause for your business.
Less Resources Dedicated to Corporate Giving
It’s hard not to look at staff time dedicated to anything outside of their normal job activities without referring back to the budget. It’s very different to dedicate a half day for volunteering for 30 employees versus a half day for 300 employees for volunteering.
81% plan to give donations in the form of cash, 75% will give goods or services and 67% plan to give their personal time.
Empowers Your Team to Make Decisions
As a small business, you’re likely making important decisions in-house instead of waiting for executive responses from HQ back east, for example. This means that your management team has the ability and autonomy to make those decisions about who, where and how to give. As a small business, you’re also able to act quickly on exciting giving opportunities that may arise or unplanned campaigns and events that your employees may feel passionate about.
Your Corporate Giving Portfolio Will Have More Meaning
“86% of small business owners cite they are motivated to give back because it is personally meaningful.” This doesn’t come as a surprise because quite often as a small business owner, your personal values are often intertwined with the values of your company. It’s part of what drove you to create and build that business in the first place. What’s great about being a small business owner is that you’ve established a network of other like-minded individuals. And when your philanthropic efforts are genuine, not only will your network recognize your giving goals as similar to their own, but they’ll also rally to support them.
We also know that as a small business, staff knowledge, expertise and resources dedicated to investing in your community giving portfolio can be limited. At HeartPress PR, we make giving back to the community easier for companies. Connect with us to find out how we can help your reach your giving goals.