Charitable Giving for Small Businesses: How to Make a Big Impact on a Small Budget

It’s a common concern and misconception that the small business owner simply cannot afford to contribute to charitable organizations. Generally, the average person thinks that giving to charity should be some grand, elaborate, gesture of a ridiculously absurd sum of money, and therefore small businesses are overlooked as being impactful donors because most small businesses aren’t able to make these “grand gestures.” However, this couldn’t be farther from the truth.

Research has shown that, on average, small businesses donate 6% of their profits to charity. This is almost 250% more than larger companies donate to local non-profits and communities. (Philanthropy Chronicle, 2008). Often the charitable contributions that small businesses engage in are not done in a one time, lump sum effort, but rather ongoing throughout the year in various directions. This is easily more attainable by the small business owner and often much more meaningful and involved then a simple lump of cash could ever be.

The thought that many small businesses may be struggling just to make ends meet may make you wonder how you can afford to donate to charities at all let alone as generously as you would like to. We often forget that it’s not always about money and that the money does not determine the impact of your efforts.

You have probably supported local causes without a moment’s hesitation because you see them in your community and you know exactly what their need is and how your donation will be utilized. Think about when you are out in your town and you see the various organizations actively seeking help. Car Washes that support local charities, or youth organizations, groups collecting donations for local first responders, Sales and fundraisers that aide local service groups (think boy scouts, girl scouts, VFW, rotary club, etc), food donation drives. These almost effortless contributions are viewed as integral to the betterment of the community as a whole. Yet we often forget that we have made them.

In the sea of non-profit organizations that are seeking donations, you may feel overwhelmed at all of the possibilities and opportunities. You may also be worried about how you can do your part for the betterment of society when you are not one of the giants in the industry. Don’t worry though, we have you covered. Here are some tips to help you succeed.

You may have to start small in your donation efforts; for example, rounding up change at the end of each month into a special “donations” account. If you can set up something that is done automatically via direct deposit for example then the fluidity of the action becomes effortless and therefore more effective.

 

Programs like Round It Up America and Checkout Charity give the option to simply round up to the nearest dollar amount, or even add a dollar when a purchase is made and this additional amount goes to various charities within their organizations.

Money is not the only way to contribute. In fact, there are many alternatives to donating money. For example, you can give of yourself by donating blood, hair, or even breast milk (National Breast Milk Bank and Human Milk Bank of North America are great organizations for this). These are great ways that you and your team can contribute greatly to the needs in your community. Participating in fundraising walks and events organized to raise money for different charities is another way to give of yourself. Your time is a commodity not easily obtained. Visits to help at a soup kitchen, food pantry, or women’s shelter are also all great ways to give your time.

With the latest trend of downsizing and shows like “Tidying up” with Marie Kondo emphasizing the benefits of decluttering, it’s not only helpful to you but very easy to take your unused items and turn those into charitable contributions as well. Various locations accept old prescription eyeglasses (Costco, Target, and Lions club) into a donation program. Old cell phones are collectible for donations to programs such as Cell Phones For Soldiers. Homeless shelters and women’s shelters accept donations of gently used clothing items, blankets, and even toys.  If you have an item that you no longer use and it is simply taking up space there is an organization that can help place it somewhere that it’s needed.

Let your team and customers share in meeting specific needs within your community! This is a great way to multiply the impact of your own charitable efforts and uniting your team and customers by supporting the causes that are important to all of you. By arranging or participating in drives, you help get essential items to the places and people that need them most and make the collection process smoother and easier for local charities. Bake sales and rummage sales can not only help get rid of old unwanted items but can also turn the income from those unwanted items, and deliciously created masterpieces, into funds for the organizations that need them the most.

Sometimes companies come together for unique collaborations as a way to support a cause and raise awareness. Generally, the result is a combination of donated merchandise or discounted items. Often the sale of these “special orders” results in a percentage of the profit going directly to the organization that they are raising awareness for. Think of those baskets and offers that are promoted during breast cancer awareness month.

The act of giving can be a balancing act to be sure, especially for the small business owner, but it’s not an impossible task. It really comes down to what type of giving you are able to make. With all of the out-of-the-box thinking mentioned above to help you get going, we know that you will feel better about your contributions, no matter how small you may think they are.

Now that you know how to have the biggest impact with your charitable contribution budget, you need to figure out which charities you want to support. To help make the selection process easier, we’ve compiled a list of the Best Charities To Donate To that also offers tips on how to choose the charities that are right for you.

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