Hurricane Harvey has been all over the news, with coverage of the devastating flood damage and the huge influx of support coming from around the nation. There are hundreds of relief funds and efforts being started to help the community survive and put itself back together. While it is heartwarming to watch people quickly act in Texas’s time of need, it brings up a rather important topic: what can your business do to help?
Your company can obviously make a donation to one of the many relief funds. However, if you want to make a real long-term impact, you may want to consider forming a corporate foundation. When you have your own corporate foundation, you’re able to have full control of how your donation is used. Not only can your company make a real difference, there is much more to be gained when engaging this type of strategic philanthropy.
Corporate foundations are nonprofit organizations that are funded primarily by the business, meaning that they don’t just rely on the public for donations. Board members are most commonly company employees who review community needs and develop plans to help. The company donates a portion of its net income for the year to the nonprofit, which then uses those funds to support community programs- especially those that have synergy with their company services.
Setting up your own foundation will not only help others, but also help your company’s public image. Corporate social responsibility often makes it easier to generate more positive press coverage, as well as to increase trust in both your philanthropy and your business. It has been proven that consumers prefer to do business with companies that are active in their communities. Not only does corporate giving enhance the image of your business, but it also helps boost employee morale, as many employees enjoy working with a company that makes a difference.
Starting and running a corporate foundation has its challenges, including startup paperwork, management and maintaining compliance. Luckily there are companies such as BizCentral USA who have years of experience working with both businesses and nonprofit organizations. Owner Efrain Rodriguez states, “Having a company foundation is a great way to show the community you care, and you don’t have to be a billion dollar company to have one. “
While hurricane Harvey has been devastating, there will be more disasters in the future that will affect communities all over the country. This presents opportunities for individuals and companies to come together to help!
Uniting together in compassion is what truly makes America Great!