For-profits supporting non-profits

Nowadays, small businesses have an obligation to support the community they conduct business in.

Although small businesses already add aesthetic value to the community by providing unique and locally made products, another step in the right direction involves partnering with non-profit organizations in the community.

Non-profit organizations are slightly different from charitable organizations. According to the Government of Canada, non-profit organizations are clubs or groups that operate on a non-profit basis to support social welfare, recreational sports, arts, culture groups and more.

When for-profit small businesses and non-profit organizations join forces, both benefit from each other.

Here are a few reasons why every small business should consider partnering with a non-profit.

Creates public good

A study conducted by the National Library of Medicine found that one of the ways small businesses played a part in combating negative economic and social effects during the COVID-19 pandemic was by partnering with non-profit organizations.

These partnerships produce public good, meaning they foster the well-being of the community, through donations, workforce volunteering and marketing campaigns. This helps non-profits reach their goals and bring attention to issues in the community.

Increases marketing opportunities

Creating public good and increasing marketing opportunities collide when the partnership between a for profit business and a non-profit organization agrees on a cause-related marketing scheme (CRM). CRM is when a business donates a portion of its income to a non-profit organization when they make a sale, and in return, the non-profit markets its for-profit contributor.

Whenever the non-profit holds events or fundraisers, its for-profit contributor is highlighted spreading awareness of the business in a positive way. If the non-profi organization explicitly aligns with the business’s mission or vision statement, its company morals become widely and clearly displayed.

Boosts customer loyalty

When non-profit events market small businesses, new audiences like volunteers, employees and supporters within that non-profit organization will shop at that business since their values align and the company contributes to their work.

Consumers naturally want to contribute to businesses that give back to their community because they believe they are making a difference, hence why 88 per cent of millennial consumers are more loyal to businesses with a giveback element.

Establishes a rewarding work environment

Lastly, when a small business is partnered with a non-profit, employees often feel that they are contributing to the community they work in. This is because they have more opportunities to volunteer, and help non profits by working regular hours if the business has a CRM scheme. The result is increased passion and loyalty towards the business, creating less employee turnover.

Ultimately, partnering with a non-profit can benefit a small business in many ways, such as through marketing, customer and employee loyalty and the location of operations. When a small business partners with a non-profit, it establishes itself as an essential contributor to the community.