When businesses give to charity, they boost the economic health of the community in which they reside. That, in turn, creates a better atmosphere in which to do business. Giving to charity, for most Australian businesses, is a win-win situation. Here’s a look at how giving to charity can benefit a company and the community in more ways than simply as a business tax deduction to boost the corporation’s bottom line.
Studies show that giving itself helps an individual increase his or her sense of belonging and meaning in life. The act itself becomes contagious, with others who see the benefits of giving hopping on board. The same is true with businesses, for businesses, after all, have individual people at their helm and on the job. When a company invests in its community, then, it creates a sense of ownership in the community itself, who will do its collective best to support that company’s work.
Australian Businesses Take Giving to the Next Level
Because Australian companies have discovered the benefits of helping others in their communities through giving to charities, many of them have taken the next step—to build partnerships with their communities, says journalist Ellie Cooper in her December 2016 article for ProBonoNews.
In fact, companies have invested quite a bit of “time and effort and involvement” into making their partnership with various not-for-profits pay off in social impact. Businesses who partner with not-for-profits usually opt for a more formalised partnership that can keep track of the impact they make on their communities. These partnerships now have surpassed random gifts as Australian businesses’ preferred method for giving. Large businesses allocate $5 billion out of their total $9 billion to community partnerships, while Small Medium Enterprises lag a bit behind, giving only $1.5 billion of their $8.5 billion charitable giving total to these partnerships.
Whether through a formal partnership or through regular designated giving, Australian businesses look to build long-term relationships with not-for-profits in their communities. When companies understand where a charitable organisation wants to go with their mission, they can better help the organisation get there by both financial help and by advice.
Businesses, on the whole, want to give back to the communities in which they are located, says a 2016 report by Philanthropy.org. In the same report, businesses shared other reasons why they gave to charities. In addition to improving the community economy and spirit, businesses who give discovered that giving gave them more brand recognition and better employee retention.
Australian companies want to help their communities, says Cooper, but want to see the impact they make with their donated time and money. Furthermore, it gives the company’s employees a mission beyond their own self-interest when they come to work every day. When employees feel invested in a cause beyond themselves, it increases productivity. Even more important is that improved conditions in their community mean that they’ll attract higher-quality investors, more committed employees, and a more favourable environment in which to do business.
Talk to Pherrus if you would like to be involved and donate towards the Pherrus Foundation. The Pherrus foundation Is active locally and internationally, providing support to those in need.