Corporate charitable giving is one way businesses help improve their communities. But companies may not be aware of the substantial benefits corporate giving brings to the business itself.
While bottom-line and shareholder value remain the highest priority, contributing to community nonprofits has tangible benefits for the corporate donor:
- Positive Community Impact – In many Arkansas communities, monetary and in-kind contributions from businesses make it possible for reading programs to flourish, for arts centers to thrive and for food pantries to feed hungry families.
- Employer of Choice – Ability to attract and maintain a quality workforce is key in today’s business environment. Corporate giving, and corporate matching gift programs for employees, are attractive benefits for those seeking employment. Today’s high-quality talent with multiple job offers often take social responsibility into account when making employment decisions.
- Personal and Professional Development – Providing employees with the opportunity to be involved in a company’s charitable giving decisions can have the benefit of teaching new skills to staff, which can in turn be applied in the workplace. Often employees have the chance to contribute to work and causes that they feel passionate about or learn new skills. By supporting these activities, companies who make charitable giving a part of their culture encourage growth and support for employees.
- Enhanced Client Relationships – Client ties can be strengthened, alliances can be built and trust can be enhanced when businesses make charitable giving to common causes a part of their operations. Working together to improve a community allows a business and its clients to form a team with a common goal.
- Demonstration of Corporate Values – Walking the talk is important. Taking action and making donations to support nonprofits affirm that community issues and causes are valued by the corporate donor.
Once a decision has been made that corporate giving is in the company’s best interest and a part of its value system, the first step is to develop a plan. Initially, take time to assess current practices with an inventory of current corporate giving. Then set goals for giving in the future.
Consider creating an employee advisory group that has authority for or input into decisions on corporate gifts. Structure operating procedures for the advisory group so that they align with your company values and allow for continuous quality improvement. Remember to ensure that appropriate conflict of interest policies are in place to protect both the company and the nonprofits it supports.
Take a look at community needs to determine where company gifts can have the most impact. These needs can change, and nonprofits that address emerging issues today may not have been on the radar two years ago. Company representatives can make visits to area nonprofits to learn more about their missions and operations.
Determine focus areas for corporate giving that narrow the types of organizations supported – this allows employees to become more knowledgeable about the issues surrounding the selected nonprofits and be better judges of how to create the greatest impact. Create guidelines so that by saying no to some charitable requests, the company can say yes to the programs that align more with its giving goals.
Arkansas Community Foundation has determined a process that helps companies become smart corporate givers. We can help. We can also connect you with others. There are many companies in Arkansas who do a great job with corporate giving. For more than 15 years, Arkansas Community Foundation has honored them with the Smart Corporate Giving Awards as a part of the Arkansas Business of the Year Awards.
Smart corporate givers plan their charitable giving, learn more about the needs of their communities, determine how their gifts can do the most good and encourage their employees to give to the causes they care about. If you know a business that gives smart, go to www.arcf.org/nominate to nominate them by Nov. 1.
 |
Heather Larkin is president and CEO of the Arkansas Community Foundation. You can email her at hlarkin@arcf.org. |
Sign up for Daily E-news
