6 Reasons That Helping Local Nonprofits Is Good for Business

Small business owners have a lot to juggle, and finding space in the day for philanthropy may not seem like a worthy investment. But community involvement can actually help small businesses grow.

From creating networking opportunities to improving employee morale and developing positive brand reputation, donating your time and a little bit of money can help you and your business thrive.

“Volunteerism is not something that you should think about doing when you retire [or] that you’ll find time for later,” says Rachel Hutchisson, CEO of Common Impact. “It’s a strategic investment in your career and your life.”

Here are six benefits that volunteering can bring to your small business: 

1. Networking opportunities

Volunteering is about supporting causes you care about, meeting people, sharing ideas and contributing in any way that you feel comfortable. And, while donating money is great, philanthropy isn’t always about writing a check. 

“People confuse philanthropy for always being [about] money, but it’s our time, it’s our talent, it’s our testimony,” Froswa’ Booker, PhD, a leading consultant for nonprofit organizations.

One of the biggest benefits of volunteering is growing our networks, and there are many ways to go about it: Mentor someone in the community who wants to go into a similar business. Teach a course so others can learn from your experiences. Or simply donate an hour or two at your kid’s school bake sale. Each time you connect with a new group of people, your network grows and so can your business.

2. Community Involvement

Small businesses are integral to the local community and can create a significant impact, especially when seen as an important member of society. First, take an inventory of what you can offer and how that skill set fits into the world around you. “It’s looking at what you do and how that might be in alignment [with the] community,” says Booker.
For example, if your daughter plays soccer, sponsor her team and have your company name printed on the team jerseys. Or let local community groups use your building as a meeting space to connect. “Now you’re seen as a neighbor.… You;re invested,” Booker adds. “That’s going to generate visibility.… It may start off in a trickle where you’re just building relationships, and the word of mouth tends to generate more people coming in.”

3. Expertise Promotion

You and your employees know your business well and low-pressure volunteering can allow you to be seen as an expert. Sit on a local board, contribute to a project in town or donate leftover supplies.

“[Sharing] makes [neighbors] say, I met this person, or I saw this person doing this. I’m going to shop there. I’m going to ask this person to tap into their expertise,” says Hutchisson.

4. Brand Recognition

Aligning your philanthropy with your business model can also help you develop brand recognition. “If you’re a small business and your business is dependent on the community as a customer base, which many of them are, you are out there in the community engaging in that very community that’s supporting you, and it builds your brand value,” says Hutchisson.

For example, if you own a local pet shop, “It makes sense to align your brand with animal welfare,” she adds. “You could engage with the American Society for the Prevention of Cruelty to Animals as a way to show you care not just about your shop but also a broader share[d] mission.”

5. Soft Skills Enhancement

Another benefit of corporate social responsibility is that it’s a low-stakes way to use soft skills. Learn to network better or practice presenting and engaging in the community when you’re typically at your desk or in a store most of the day. “There’s a lot that can be learned with skills-based volunteer[ing including developing] insight that you can bring back to the organization,” says Hutchisson.

If you’re a local landscaper, volunteer to help a local school with yard work and simultaneously teach kids about a viable career path. “You’re helping them, but you’re giving your team an opportunity to develop relationship-building skills [and] customer service,” says Booker.

6. Improved Employee Morale

Encouraging employees to spend time in the community can improve morale. They get a break from the day-to-day grind and can spend time doing something that’s mission-driven and community-driven as part of their jobs, explains Hutchisson. Ultimately, this can improve employee engagement and retention.

Stay Strategic

While philanthropy for small businesses can help with all of the above, that doesn’t mean you shouldn’t be strategic about where and how you give. “It’s OK for you to pick things that align with what your brand is, [with] who you are, and also to determine what you don’t want to do that might be against what you believe in,” says Hutchisson.

Small business community involvement and strategic giving that are aligned with your core values, that don’t take a lot of time or money and that are fun and engaging can allow you to reap numerous benefits, from learning new skills to bringing more people into your business to developing a positive and strong reputation in your community.

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