Beyond the Checkbook: Is Strategic Giving a Better Way to Market?

We've all likely engaged in "checkbook charity". We respond to an appeal letter or email by sending a check or making an online donation. We believe in the mission of a good cause and want to help, so we provide the monetary assistance a nonprofit needs to continue its good work.

But what if you’re a business owner? A local cause needs help, and you want to provide your assistance. Do you donate personally? Do you donate on behalf of your business? Both? What sort of help exactly do you offer on behalf of your business?

Can your business give better in a way that also helps the business grow its brand, its profit, and its market share?

Think beyond the checkbook

“ Beyond the Checkbook” Giving

In most cases, “checkbook charity” is reactive. A cause we believe in asks for money and we give something. The business owner making the decision wants to help but may not have thought through how that donation could have provided help to his business growth as well.

Some problems with this “checkbook” approach include:

• The broader public ( and most importantly, your customer base) may not be aware of your financial donation.

• That lack of awareness has made no positive impact on your business brand.

• Your buying audience has made no connection with your gift and how it benefits them and their interests.

• It lacks a measurable impact to your business goals.

Corporate Giving Strategy

Also referred to as “strategic philanthropy”, this is the process of putting thought & analysis to what sort of charitable giving you want your business to be involved in. The process involves ensuring that the charitable giving a business does has a relevant and measurable impact on the growth of the business as well.

It incorporates some of these specifics:

• Alignment with Business Goals: The charitable efforts are chosen because they directly correspond with the business’ services, products, expertise, industry, customers audiences, or geographic communities.

• Long-Term Impact: The charitable effort tries to create a sustainable change over the long-term instead of a mere one-time donation.

• Measurable Outcomes: It is data-driven, with clear objectives and measurement of results to see if those objectives are met. It is an investment in the social good and business growth, and the business is desiring to see a return on their charitable investment.

• Collaboration:  It involves partnership with a variety of nonprofits and other organizations to drive collective impact.

• Enhanced Reputation: The business is looking to grow their brand and drive customer loyalty, as well as boosting employee morale.

• Mutually Beneficial:  The business is both actively interested in growing their business bottom line, as well as providing an impact that benefits the charity and their mission.

Corporate Giving as a New Way to Market?

Building Both a Brand and a Community

Today's consumers know that every ad is designed to persuade them to like a brand and buy its products or services. However, when a business demonstrates its support for causes that matter to its customer audience, it builds a loyalty that goes beyond a simple sale. The connection becomes much deeper, transforming from a basic buyer-seller arrangement into something more meaningful and important.

Driving Market Share & Customer Loyalty

The intent is that the business charitable giving is not a feel-good effort, but a specific strategy to build market share and deepen customer loyalty. The good deeds are meant to become a competitive advantage. The company is trying to solidify their business to become the brand of choice because of the giving that they do, differentiating themselves from competitors who do not do the same. The customer loyalty built is designed to overcome issues concerning price & product, moving the buying decision from the rational (which product is cheaper?) to the emotional ( “I like this company and what they do!”).

How Does a Business Start Giving Strategically?

Some initial steps to consider include:

• Why?: Why and how does the charitable cause(s) the business select make sense to the business goals and the audiences that matter most?

• More Than Money: Are there other methods available beyond cash( in-kind gifts, employee volunteer involvement) that a business could provide?

• Your Team is Bigger Than You: Involve your employees in the decision making. Their thoughts can lead to better decisions that include employee volunteering or employee donation matching programs.

• Measure Your Impact: Determine the business metrics and charitable metrics that matter to you. What specific business goals do you want your giving to achieve and exactly how do you measure them? What results do your desire the charity to achieve that your giving can specifically aid?

Conclusion

There is a lot for a business owner to consider on how to build a corporate giving strategy that makes sense in building a brand, driving sales, earning customer loyalty, and so much more. Getting the reliable help from an expert like Generosity Nexus is key. We bring years of firsthand experience and practical guidance in turning corporate giving into an actionable strategy instead of just a well-meaning idea.

Don’t hesitate to schedule an appointment to learn more about how we can help you.