Philanthropy is a powerful way to improve the world around us and leave a lasting, positive impact on the things we care about most. But can philanthropy do even more?
When MaxEx conducted its State of Sioux Falls Philanthropy study, 90% of business leaders described the role business plays in philanthropy with adjectives such as HUGE, BIG, SIGNIFICANT and IMPORTANT. These extremely successful business leaders described philanthropy as a value-add and an important resource. Many referenced how philanthropy is intentionally infused into corporate goals and strategies. While no one named it, many described how they utilize philanthropy as a competitive advantage.
In today’s competitive business landscape, companies are increasingly recognizing the strategic advantage of integrating philanthropy into their core operations. Beyond the traditional benefits of goodwill and community impact, a well-crafted philanthropic strategy can differentiate a company from its competitors, enhance employee engagement, and build brand recognition alongside traditional marketing approaches.
Nonprofits can diversify their appeal to corporate supporters by highlighting not only mission and impact but talking about where and how a partnership can help a business achieve its 2025 objectives. Businesses can rethink where and how it invests time, talent, and treasure as a strategy in achieving its 2025 goals.
Cindy Peterson, Founder + CEO
Benefits of a Strategic Philanthropic Approach
The data from MaxEx’s State of Sioux Falls Philanthropy Study showed that one out of every three individuals saw philanthropic involvement as a differentiator in the business sector. By implementing a strategic approach to philanthropy, companies can yield several benefits to contribute to their competitive edge:
- Customer and Client Attraction
- Employee Retention and Engagement
- Enhanced Reputation and Influence
- Philanthropic Culture Leadership
Customer and Client Attraction
Companies with a strong philanthropic footprint often appeal to socially conscious consumers and clients, thereby expanding their customer base. This footprint can also differentiate companies from competitors.
To share your footprint and draw in these customers and clients, have a page on your website that clearly recognizes your efforts. Include how organizations can request support and list organizations that you have supported in the past.
Employee Retention and Engagement
By fostering a culture of giving, companies can improve employee retention rates and boost morale, leading to higher productivity and reduced turnover. Encouraging employees to volunteer and hold leadership positions on boards and community committees can also elevate employee skill development and business development. These efforts can make companies stand out as an employer of choice and expand brand recognition without deploying marketing dollars.
Enhanced Reputation and Influence
Making value-based decisions and taking action on social issues can positively influence how a company and its leadership are perceived in the public eye, enhancing credibility and influence. Positive feedback from a company’s employees and consumers can also boost a company’s reputation as they speak highly of their culture and practices.
Philanthropic Culture Leadership
Companies that prioritize philanthropy not only build a positive reputation, but also position themselves as leaders in fostering philanthropic cultures within their industries and communities. You may build relationships with other community leaders, and help other companies see the impact and importance of creating a philanthropic culture in their corporation.