Today is Giving Tuesday, celebrated on the Tuesday following Thanksgiving (in the U.S.) and also following the string of shopping-related events like Black Friday, Small Business Saturday and Cyber Monday. The day kicks off the year-end charitable season, when many focus on their holiday and end-of-year giving.
You know this: Small businesses are generous in giving back to their communities and favorite causes throughout the year. A recent survey of 1,400 small business owners by small business lender Funding Circle, found that despite the responsibilities tugging at them from all directions, small business owners still find time to make a difference in their communities and their favorite causes.
Small business giving
Percentage of small business owners surveyed:
46% | Donated up to $1,000 to a charity last year
52% | Plan to donate this year at same or higher level
44% | Prefer to donate cash rather product donations
30% | Donated up to $500 in holiday season-related charity
22% | Donate company products or services last year
The ROI of giving
Giving back to the community is one of the smartest and most worthwhile things a small business owner can do, and it doesn’t have to only involve cash, says Sacramento wealth planning strategist Jason Whong. “With tax breaks, publicity opportunities and the generation of a ‘feel-good’ attitude within the company, the benefits of encouraging a philanthropic culture at the workplace are plentiful. The goal is to have your employees embrace philanthropic endeavors while also promoting those activities under the company name,” says Whong.
Here are some of the giving opportunities many small businesses do that give back to the their community while raising the spirits and teamwork of their employees.
Sponsoring: Sponsor a local event that celebrates the best and brightest in your community. Host an awards dinner and invite local politicians, your employees, the media and other organizations that are connected to the type of recognition.
Encouraging volunteerism: Encourage your employees to go out in the community and help their favorite charities by providing them with a paid vacation day specifically dedicated to volunteering with a nonprofit.
Setting up matching grants: Offer a matching grant of a specific amount, or even a 2-1 match where you double your employee’s gift up to a predetermined limit.
Planning “community give-back” events: If you have a local food bank, animal shelter, disaster relief organization or other nonprofit organization that your employees connect with, consider arranging some half-day volunteer events throughout the year.
For many small businesses that are operating on thin margins, the ability to contribute funds or time may be out of the question. If so, look for ways that you can donate products or time to a cause. “Business philanthropy is an excellent marketing and employee engagement tool that too often is overlooked when focusing solely on the bottom line,” says Whong.