The outcomes can be tremendous when companies and nonprofits unite for a social issue or a specific cause.
For instance, the Global Fund’s RED campaign partners with big-name brands like Gap, Apple, and Bank of America, and has generated more than $700 million to support HIV/AIDS initiatives. The funds help over 245 million people across Africa by providing HIV testing, counseling, and health resources.
While major corporations have a broader reach, small businesses can also significantly impact communities and benefit the workplace by giving back. Here are five reasons why companies should partner with nonprofits this holiday season.
1. Creates Brand Awareness
Cause marketing allows all parties to benefit from business-nonprofit alliances. Whether customers align themselves with a campaign or boycott a company’s association with a specific group or issue, businesses can leverage their resources to construct change and public awareness.
At the same time, partnering with charities generates buzz around the company. Small businesses can demonstrate their efforts and contributions on their website, social media pages, or through advertising.
For example, Gillette’s ad addressing “toxic masculinity” garnered 65.4 million views in two weeks – some appreciated them speaking out against sexual harassment and bullying, while others were less than enthused.
Either way, the publicity was good for charitable donations and Gillette’s sales revenue – the Boys and Girls Club of America received the first cut from the $1 million raised. These types of grants are essential for nonprofits to budget future projects accordingly and complete their current projects.
2. Enhances a Company’s Reputation
Partnering with nonprofit organizations allows companies to enhance their public-facing and industry-wide reputations.
Surveys show that a company’s philanthropic participation is vital to consumers, with 66% of young people developing a positive impression of brands committed to a social cause or platform.
In many instances, brand impressions impact consumer buying decisions – a company with a positive and charitable image is more likely to convert leads when partnered with meaningful nonprofits.
3. Unlocks Networking Opportunities
Naturally, companies associated with nonprofits for the holidays can pave the way for new connections and introductions to potential customers and partners.
Charity events foster face-to-face communication, giving small businesses a chance to share about their goods and services and their commitment to the cause.
Depending on one’s industry and nonprofit focus, new business ventures and affiliations may result in increased revenue in the new year.
4. Targets Niche Demographics
All nonprofits deserve support, but small businesses should consider partnering with those that have a similar target audience. Aligning one’s brand with a charitable partner makes it easier to reach niche customers.
For example, LifeStraw sells water purification products that filter microplastics and other harmful contaminants and bacteria – a critical innovation for regions enduring dire water crises.
The company also started the Safe Water Fund by partnering with local grassroots organizations to provide clean drinking water to communities in need, particularly in Baltimore.
Small businesses can also expand their reach by working on holiday campaigns with nonprofits. Because organizations maintain individual target audiences, it may provide beneficial company exposure to donors and volunteers, leading to future customers and a larger talent pool.
5. Boosts Employee Morale
There’s a reason why nonprofit partnerships are good for business: People love giving back. In the workplace, working alongside charitable organizations during the holidays boosts employee morale and increases productivity.
When a company partners with philanthropic causes, they open doors to volunteer opportunities, donation drives, and fundraising events that encourage employee participation.
Partnering with nonprofits cultivates a positive workplace culture by building teamwork and stronger collaboration and leadership skills.
Nonprofit Partnerships Make a Difference
Some might consider business-nonprofit collaborations a bold move. However, when appropriately deployed, small businesses and charities can make significant contributions that foster positive change within the community. Additionally, companies can improve their profitability while supporting a good cause.
Devin Partida writes about investor technologies, big data and apps. She is also the Editor-in-Chief of ReHack.com.