We're tempted to embark on a rant against current US tax policy and small business, a relationship many would liken to a large, heavily-armed gentleman demanding one's wallet, when it comes to revenue and earnings, but we'll digress (you're certainly welcome to drop an inflammatory remark in the comments below, of course.)
A recent SurePayroll survey found small business owners willing to give back to the community or other causes, but lacking the means to do so comfortably. In summary, it's a simple trade-off: small businesses cannot viably trade away profitability for charity.
SurePayroll cited one small business professional on the idea that many more would support the local community even more than they currently do, if economic conditions permitted it:
"Small business entrepreneurs are often the ones who have formed businesses and established mission statements out of a need they have observed in their communities," said one business owner. "However, their growth and profitability are typically far less than large corporations, limiting their ability to meet social and community needs and still maintain a profit."
Matt Bandyk at US News wondered if small businesses should look at charitable giving in another way - as a way to advertise:
It's reasonable to think that many small businesses treat charity as something expendable: It's nice to do, but not something that you want to have cut into the meat-and-potatoes, money-making aspects of the business during lean times.
Is that view short-sighted? Should charitable giving be a built-in part of every small business's budget - not just because it's a good thing, but because it can be a good marketing tool?
Maybe we are at a point where some of the charitable giving by small businesses, not all of it, needs to receive a small consideration in return. Many charities operate as businesses, and provide informative materials to prospective donors. Perhaps small businesses need a mention in the campaign pitches for organized charitable events in exchange for backing the charity's work.
A heartfelt thank-you is always welcome, but a couple of new clients who convert into regular customers means more donations for the future.
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Comments
Giving til it hurts
At one time, not too long ago, we small business owners & leaders were looked up to in our communities. As specialty retailers or professionals, we used to have the profits that could be dispensed more liberally & quickly as compared to the "big boys" (no commitees, no BS, you gave as you felt led).
Today, it's much different. We want to give, BUT we can't afford to. As the American consumer demands lower & lower prices & tends to price shop more often, the profit erodes & disappears. You can even extend that same idea & fact out to local manufacturers. ( I won't bring up the topic of jobs going overseas & immigration!)
It used to be that you would support or sponsor a local team or event out of the goodness of your heart and, not just because you were looking for it or expected it, the local community or team players & families would "reciprocate" by driving business back to your store. Not anymore. Which leads back to the question of all business expenses, What's in it for me & my bottom line? No ROI, no community sponsoring. It's that simple. Will we continue to give to our churches or synagogues? Most likely, yes. To the community...?
I can tell you that I sponsor a LOT LESS school or community books, plays, teams, bands, etc. Why? No ROI. My family & staff could better use the bucks. Unfortunately, I think many of us are at the point that "donations" really fall into the category of "advertising expense."
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