Businesses
Unlocking Potential
Businesses bring a wealth of resources, from capital to subject area expertise, that can significantly boost the impact of community benefit efforts. This work can leverage business acumen to increase reach and efficiency.
A common perception of corporate philanthropy is that companies face a choice: either devote resources to charitable efforts or reinvest those resources for shareholder value creation. But studies show that companies that strategically engage in charitable initiatives create more shareholder value than companies that stay on the sideline.
Many businesses are good corporate citizens, donating products and money and sponsoring events. But what if, by working more closely with community coalitions or by adjusting those efforts slightly, businesses could make every dollar contributed go even further toward its intended goal while at the same time boosting the bottom line? We believe that is possible.
That’s why we’re illustrating ways businesses and nonprofits can benefit each other.
Why Engagement Matters
Involving your company and its employees in a community cause demonstrates good corporate citizenship. But it is also good business. Surveys of employees by Deloitte highlight the value of workplace volunteer programs, including:
Employee satisfaction
Employee retention
Employee recruitment
Customer / sales proof points
Positive content for customer engagement
Strategic Philanthropy
By using philanthropic efforts to improve what Michael Porter termed a company’s local and reputational “business context,” company after company has seen success in elevating both the communities in which they operate and their own business results.
In one study that followed 251 companies over an 11-year period, for every $500,000 in resources devoted to charitable efforts, companies went on to generate an additional $3 million in revenues and $790,000 in net income on average.*
The Impact Equation: Broad vs Deep?
In small towns and large cities alike, most companies are approached by a myriad of sources for donations. To lessen the burden and lower expectations and disappointments, it helps to define what types of donations you’re willing to make, and what causes you may donate to. Have a thorough application to gather the info you need.
Whether you donate to one or many, focusing your engagement efforts on one cause is worth considering, as your impact will be greater than the sum of its parts.
Picking Your Cause(s)
While much of this Playbook focuses on the cause of hunger and food insecurity, the principles and lessons provided can be applied to nearly any cause. When defining your donation criteria or choosing a nonprofit or cause to donate to, we suggest evaluating these and other criteria that are important to you.
✓ Related to your area of business
✓ Deeply cared about by business owners or employees
✓ Aligns with what employees already donate to or volunteer for
This is not just about donations. Your company’s expertise can be even more impactful for a cause. For example, if you are a landscaping company supporting youth sports may make sense because of your expertise with equipment for taking care of their fields.
Areas for Collaboration
Collaboration creates a win-win partnership for everyone involved. Here are ideas for greater collaboration:
Generating Insights and Ideas
Business leaders often have the foresight and experience to identify opportunities and challenges that nonprofits may overlook, or be unfamiliar with. Their strategic insights can help nonprofits think beyond immediate needs and toward long-term sustainability and innovation.
Leadership and Expertise
Business leaders have proven track records and are often connected to resources within communities. These leaders can help nonprofits navigate complex challenges by offering guidance on decision-making, operational management and strategy.
For example, small nonprofits may not be able to afford a Human Resources director, yet they still face issues like hiring, firing, regulations, employee reviews and management. An experienced HR professional can provide invaluable assistance in these complex areas.
Volunteer Pool
Local businesses can be an excellent source of volunteers. Some companies encourage employee engagement by donating a percentage of work hours to community causes, providing non-profits with both manpower and expertise for projects.
Working Together – Communications (ROI vs KPI)
Businesses often focus on measurable outcomes like ROI (Return on Investment) and KPIs (Key Performance Indicators). Nonprofits can use these performance metrics to quantify their impact and communicate the value of their work to stakeholders more clearly. They can tap local businesses to provide them with mentorship on setting and measuring impact outcomes.
A/V, Marketing, Design, etc.
Businesses bring specialized skills in areas like audiovisual production, event management, marketing and design. Nonprofits can tap into this expertise to enhance their campaigns, create compelling content, and make data-driven decisions.
Creative departments in businesses often have access to premium design software and the skills to use them. Tools like Adobe Creative Suite, including Photoshop and Illustrator, can cost hundreds to thousands per year–a hefty price for nonprofits. Offer nonprofits support in creating polished, professional marketing materials or event collateral. For those without access to expensive tools like Adobe Creative Suite, free options like Canva that cater to amateurs are available.
Most businesses have websites, which they manage either in-house or through an agency. Businesses can volunteer to use the same resources to help a nonprofit with their website. Whether building, managing or creating content, it is a marginal lift for a company that can have outsized impacts for the nonprofit.
Fundraising and Grant Writing
With expertise in campaign management, businesses can help nonprofits create more impactful fundraising efforts. This includes optimizing online campaigns, event planning and innovative approaches to donor engagement.
Many businesses have professionals with strong writing and financial acumen who can assist nonprofits in writing compelling grant proposals and presentations, increasing their chances of securing funding.
To create a deeper impact, businesses can “adopt” a nonprofit or cause that aligns with its values or mission. It can channel company and employee donations, mentorship, volunteer time and logistics support in one direction. With the backing of this approach, the business helps its current resources go further, and the cause is advanced.
Technology Access and Know-how
Technology is often underutilized in nonprofits due to limited budgets and expertise. Businesses can provide both the hardware and software tools as well as the training necessary to implement more advanced technology, such as email marketing and data analytics platforms.
Nonprofits can greatly improve their internal communication by adopting tools which are regularly used in businesses to streamline project management and foster collaboration among teams.
- Team Management: Slack, Monday.com, Asana, Teams, Google Workspace
- Email marketing programs like Constant Contact, Mailchimp or Emma
- Customer Relationship Managers like ZohoCRM, Salesforce or others
- Analytics tools like Google Analytics and Ahrefs SEO
- Social Media platforms like Meta Studio (Facebook and Instagram), Google and Bing Ads
Spreadsheets and Analytics
Businesses have employees who often “excel” at data management and analysis. By offering their expertise in areas like spreadsheet creation and optimization, forecasting, bookkeeping and financial analysis, businesses can help nonprofits make better data-driven decisions.
Physical Spaces and Logistics
Many businesses have access to meeting rooms, desk space, event spaces and logistical infrastructure that aren’t in use 100% of the time. Offering these resources to nonprofits can reduce their overhead costs and enable their resources to go toward mission-critical program activities.
Businesses often have well-established infrastructure for activities like shipping, procurement and supply chain management. By tapping into these resources, nonprofits can scale their operations without the need for heavy investment in logistics space, equipment or teams.
Bridging Across Multiple Offices/Locations/Job Types
Many businesses have mastered managing complex operations across multiple locations. This knowledge can be valuable for nonprofits operating in different regions or serving diverse populations, ensuring seamless coordination and communication across teams.