Corporate giving is essential to building strong relationships between businesses and communities. In this lesson, you will learn how companies can direct their giving strategically to further their own business objectives.
Building Community Relationships
The nurturing of the business-community relationship is one of the most important tasks facing a company. In this lesson, you will learn about one of the most important ways to build community relationships through corporate giving strategies to non-profit organizations. In addition, you will learn about the different forms of corporate giving and how they help build strong relationships between businesses and communities.
Companies utilize their giving strategically to further their own business objectives. In 2013, corporate contributions totaled $17.9 billion dollars. Tax rules in the United States have created a favorable environment for corporate giving, especially for educational, religious, and scientific purposes. Let's examine how Pear Products, a technology company, engages in corporate giving strategies.
Forms of Gift Giving
Corporations have a few choices in how to implement their giving strategies. The first option is through charitable donations, which consist of gifts of money. For example, Pear Products donated over $10 million dollars to area food pantries. Corporations can also give in-kind contributions, which are gifts of products or services. This type of donation from companies now exceeds their cash donations. Pear Products provides free tablets, laptops, and technology expertise to schools, universities, and startup companies. Lastly, companies can provide volunteer employee services, which are the gifts of time. Pear Products' employees volunteer at local shelters, food kitchens, and for environmental causes. For example, last month all of the employees spent a day cleaning up an area beach for the upcoming summer season.
A new trend in corporate volunteering involves skills-based volunteerism, where employee skills are matched to specialized needs in the community. Pear Products' technology team runs volunteer weekend classes where they help small businesses develop skills, such as website or application development.
Corporate Strategic Giving
Smart companies establish strategic philanthropy, which is strategy that is in line with their goals and objectives so that both society and business benefit from the giving. Companies can benefit from having effective giving strategies. The benefits include:
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Large supply of trained workers by offering free training, gifts to universities, and donated computer equipment
Improved demand for product or service, such as corporate giving, results in increased customer loyalty and positive corporate image which results in more sales
There are ways that companies can optimize their charitable gifts. One way is by utilizing specific skills that differentiate themselves from other companies. For example, Pear Products is known for advanced programming and application design. The company offers free training to businesses and universities that draw national attention. Another way companies can benefit from their giving is by ensuring that their priorities match with employees' interests and values of the company. Pear Products' culture centers on employee passion to help homeless and disadvantaged populations. This has led to numerous charitable activities towards homeless shelters, food pantries, and unemployed worker training.
The nurturing of the business-community relationship is one of the most important tasks facing a company. Corporations have a few choices in how to implement their giving strategies:
Charitable donations, which consist of gifts of money
In-kind contributions, which are gifts of products or services
Volunteer employee services, which are the gifts of time
Smart companies establish strategic philanthropy, which is charity that is in line with their goals and objectives so that both society and business benefit from the giving. Companies benefit from having effective giving strategies, which include:
Large supply of trained workers
Improved demand for product or service
After this lesson, you'll have the ability to:
Describe the choices that corporations have for implementing giving strategies
Explain the importance of strategic philanthropy
Identify the benefits to corporations from their giving strategies
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