The Value of Connections in Business and Philanthropy

We’ve all heard the saying, “It takes a village”. This is true in both business and philanthropy. Successful businesses need many connections to be successful, as do non-profit organizations. Part of this success comes through the connections that are made in everyday business. These connections can help various businesses and organizations truly thrive.

We’re going to examine how different connections can be beneficial in both business and philanthropy and how to best build these relationships.

Benefits of Strong Business Relationships

Expanded Networks

Businesses that have strong connections see a variety of benefits from increased job opportunities to an expanded network. Building these partnerships can help to understand others better and be more knowledgeable about other’s capabilities. Being aware of others’ skill sets is crucial because you can learn how you can help one another. You can discover how you can each benefit from what the other has to offer.

Referrals are a big part of having a successful business with the New York Times reporting that 65% of new businesses coming from referrals. Statistics from Neilsen show that 92% of consumers trust family and friend recommendations most out of all other forms of advertising.

When people do business and expand their networks, they often “shake on it”. The old-fashioned handshake can still tell you a lot about the deal you’re about to make. Researchers found that when someone gives you a firm handshake on a deal or anything else, it equates to being open to new experiences. This can mean a lot in the business world.

Maximize Potential

As you work to build stronger business relationships, you can also discover so-called “missing links” that may help you become more successful in your business. Others can suggest things that you could or should be doing to maximize your business’ potential.

Partnering with social influencers who relate to your business can certainly maximize your business potential. Statistics show that over 60% of consumers trust recommendations from influencers when making their purchasing decisions.

It is vital to build different types of relationships because it can be impossible to meet a client’s needs alone. By collaborating, everyone benefits in the end.

Helps to Promote Your Company

As you build strong relationships, you help build awareness for your company. Positive connections and interactions result in powerful marketing tactics that won’t cost you a penny! The connections you’ve made will let others know about their experiences, hopefully boosting your business. Perspective clients will have no doubts about your business because they are hearing good things from people they trust.

Benefits of Philanthropic Connections

Making an Impact

Building connections in philanthropy is just as important if you want your organization to thrive and truly help others.

Research shows that being empathetic to a cause allows people to connect emotionally with the it. This gives it more meaning and impact. Studies have shown that empathy can lead to increased behavior such as charitable giving.

Engaged Donors

By building connections with donors, you can let them know that their contributions are making a real impact. If they can see that their money and goods are going to a good cause, they will be more likely to continue to give.

When organizations fail to make these connections, their donors may feel underappreciated and may begin to look elsewhere to make donations. When donors are engaged, they are hearing about their impact more. This not only makes them feel good about their donations but also creates trust, which results in future donations.

Building Community

Philanthropic connections help to build community. Individuals and companies who feel connected are more likely to participate in events, volunteer, and even help to promote the organization. Building connections can create advocates who can spread the word about the organization and its mission.

Provides Insight

Having connections in philanthropy can also provide valuable feedback and insights. These connections may provide suggestions for new programs or have ideas to fix existing ones. By making these connections and using these ideas, nonprofits can learn how to strengthen their programs and make a larger impact on the community.

The Benefits of Businesses and Nonprofits Connecting

When businesses and nonprofits can bring their connection together, there are a plethora of benefits that can be beneficial to both sides. Here are a few key benefits:

Brand Reputation

When people see that your business contributes to the community, it can benefit your brand reputation. People will relate your business to one that helps others, which may make them more likely to support you.

Employee Fulfillment

When businesses can align with non-profits, it can lead to employee fulfillment. Research shows that companies that can align their philanthropic efforts with their workers’ values, can have a lower turnover rate. Companies must determine what efforts mean the most to their workers and apply their efforts in that direction. A survey can help determine what causes are most important to workers.

Social Responsibility

When businesses help nonprofits, they show their social responsibility to important issues by supporting groups that give back to the community. For example, helping a group that works to keep oceans clean and promote recycling, can show a business’ commitment to being environmentally conscious. This can demonstrate how important the environment is to a company and how they plan to maintain a commitment to helping the cause.

Employee Engagement

When businesses choose to help non-profits, it can inspire staff and engage them. It can also give many staff members a feeling of purpose that they are doing something to help their community. Non-profits also make connections with new people who may bring skills that can help their organization.

Statistics show that younger generations tend to mobilize quickly because they believe in and share causes on social media and many different crowdfunding platforms. A report from Zelle found that nearly 75% of millennials financially supported family, friends, and nonprofits since the start of the COVID-19 pandemic. This is the highest among all generations polled.

Reports also indicate that Generation Z could have the largest growth potential when it comes to charitable giving. While they may not be giving as much monetarily, they are more willing to make sacrifices to support their causes.

If businesses can make charitable causes a priority, such as organizing volunteer drives and other opportunities, they may be more able to keep good employees and maintain employee engagement.

Name Recognition

Partnering with a non-profit helps to get a business’s name in the public eye without doing any marketing. People will see that a business is working with a non-profit and may become intrigued to learn more about what it has to offer. In this capacity, the non-profit is getting the help it needs, while the business is reaping the reward of free advertising.

How to Build Connections in Business and Philanthropy

There are several ways you can build connections in business and philanthropy that can provide countless benefits.

Maintain Contacts

If you want to make connections, it’s important to stay up to date with your contacts. Network and look for several people who can help you build your business or help spread your mission. Checking sources like LinkedIn and handing out business cards are good ways to make and maintain contacts.

Build Trust

Establish your business or organization as one that is trustworthy and reliable. People do not want to be associated with groups that have unfair practices or that don’t stand for something worthy. Follow through on your promises and show people they can trust in you.

Offer Value

You can easily make and maintain connections by offering value. When you offer something of value, people will be drawn to you. You can do this through attending events, volunteering or simply sharing their message through social media. This will help you to make valuable connections and develop like-minded relationships where you both will flourish.

Making connections in business and philanthropy can be the difference between thriving and sinking. Learning to not only make these connections but also maintain them, will provide years of benefits in both business and philanthropic areas.

If you are interested in learning more about business and philanthropic relationships, contact me at 949-271-5110. I can share information on what works well to help you. Look forward to hearing from you. Richard Ward, CFP.


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