Every for-profit company should have a nonprofit and/or cause relationship. The public expects it of them, and it will improve and increase their business. Now, it’s time that companies start looking at those relationships as a business strategy.
Guitars in the Classroom and D'Addario
Why do companies currently start cause/charity relationships?
1. They use it as a benefit to their employees – making donations to organizations selected by their employees.
2. They consider it as a marketing initiative – donating product or awarding sponsorships to charities and/or causes that they believe their customers or target customers would like.
3. They think it will bring them added publicity – choosing any well-known charity to receive proceeds from something.
How could those efforts be more effective?
1. Cause/charity relationships as an employee benefit: People want to work for companies that make a difference in the world. I would even suggest that future and present employees are more concerned that a company is philanthropic than they are worried about which charities and/or causes the company supports. So, although your employees’ choice can be considered when choosing a charity or cause, it should not be the only factor.
2. Cause/charity relationships for marketing: Sure, customers are more likely to spend money with a company when they think part of their money will be going toward a charity or cause, but that doesn’t mean companies should only choose charities or causes that “match” the demographic of their customers. For example, let’s say that company A gives 5% of their profits to homeless shelters in San Francisco, and company B doesn’t advertise any philanthropic activity. A potential customer (who has never been to San Francisco or thought about homelessness) is still more likely to buy from company A because they are doing good.
Woodcraft Rangers and Sally Beauty Supply
3. Cause/charity relationships for public relations: Many companies choose, at the last minute, to add a charity or cause into the mix. Their only consideration is that they don’t want to alienate their customers, so they choose a charity that will be liked by the lowest common denominator. Usually they don’t do anything special for that charity and just throw a few dollars at it. Then, they say, “Look at how great we are! We are donating money to the XYZ Foundation!” They don’t know exactly what the charity does, and instead of finding out, they put a lot of money and effort into getting credit for the donation. They use it to bring in sponsors and celebrities. They write countless press releases about their generous behavior, and then their appalled if no media covers the story.
I hate to break it to them, but tying a charity or cause in is nothing new and, therefore, is not news. What is news? A company going to great lengths to help that charity or cause by creatively raising money for them or getting them some other product or service they need. A journalist can easily spot a company that is going out of its way to help and can also spot someone who just wants their name in the paper.
Who benefits?
The company - Companies that select charities strategically will not only have a lot of PR power for making a significant contribution to charity, they will also greatly improve the success of their business.
The employees – Companies that are maximizing their charitability will gain greater respect from their employees, who will be more likely to stay with the company.
The charity – Just like a for-profit benefits from associations with sensical partnerships, nonprofits also improve their branding when they work with companies that have similar missions.
The community – When we’re all working together to support the causes that we can actually make a difference in, we will be able to really begin to solve these big problems in our communities.
