You Can Get Something Back When You Give

In today's uncertain business environment, every penny counts. Each dime or dollar in profit is a precious commodity that can make a difference in whether a company continues to thrive or falls by the wayside.

Under these unpredictable circumstances, a business might find it difficult to dedicate a portion of its profits to a deserving charity. On the other hand, it's entirely possible that a company could decide that supporting a local or national cause is one of the best ways to attract and retain the customers it needs to survive.

A Boost for Your Business

How does supporting a local or national charity help your business' bottom line? Here are some ways charitable giving will give your company a boost.

• It will increase sales because, in many cases, people who support the charities you support will want to do business with you. In a 2011 survey reported by the National Association of Women Business Owners, 70 percent of people questioned said they would be willing to pay more for a product linked to a specific cause.
• It will enhance the image of your company in the community. That survey found that 90 percent of the people asked said one way a company can earn their trust is to donate goods or services to a charitable cause.
• It will increase your company's awareness in the community. You probably will get publicity for your good deeds from local newspapers, radio stations and television stations.
• It will help you attract and retain employees. The survey found that 81 percent of people questioned would like to work for a company that gives to charitable causes in the community.
• It will motivate your employees.
• It will establish loyalty to your company among customers and potential customers.

Decisions, Decisions, Decisions

Your profits would disappear in a hurry if you gave to every charity, so you'll have to decide which organizations to help. You probably aren't backed by the resources of Walmart or Wells Fargo, the two companies that donated the most to charity in 2012, based on information from the Chronicle of Philanthropy. Therefore, you'll have to choose your charities carefully.

• If most of your customers are local residents, you should probably go with local charities. However, if people all around the country use your products or services, you might consider a nationwide organization such as the American Heart Association or the American Red Cross.
• If at all possible, you should connect with a charity that is in some way related to your business. For example, if you sell or manufacturer toys, you might want to donate to an organization such as Childhelp, a national group that aids victims of child abuse and neglect.
• It's a good idea to help an organization that is personally meaningful to you or one of your employees. For instance, if a spouse or employee suffers from diabetes, you might consider connecting with the American Diabetes Association.
• It will pay off to listen to your employees' opinions on who the company should help. If you let them help make the decision, they'll be a lot more likely to provide volunteer manpower if you need it.

Get the Word Out

As a human being, your major motivation in giving to charities is that you want to help people less fortunate than you. However, as a businessman, you shouldn't pass up the chance to publicize what you doing in the community.

• Send out a press release, complete with photos, to local newspapers and radio and televisions stations whenever you donate goods or services to a nonprofit organization.
• Cement your connection with a charitable organization by distributing its marketing materials in your place of business and asking your employees to wear pins or buttons highlighting the organization. You might also offer special discounts to those who work for or with the charity.
• Ask the charitable organization to mention your company when it sends out its promotional materials. Good publicity is always helpful.
• Don't forget about your own customers. Keep them updated about events you participate in, and encourage customers and employees to volunteer at these events.
• Social media is important. Let your customers and potential customers know what you are doing by publicizing your efforts on Facebook and Twitter.

Who Should You Help?

It's important for you to connect with a reputable charity. You might want to avoid those that spend more on administration and marketing than they do serving their core purpose. Before you decide which group or groups to help, do some research on the Internet to find out which organizations score well in these areas.

• Transparency;
• Results in serving the people they are supposed to be serving;
• Finances.

You should feel good about donating a portion of your profits to an organization that helps people who need help. But charitable giving can also add strength to your business' bottom line.