Considerations About Companies That Donate Profits


There are an increasing number of companies that donate a portion of their profits to local charities. There are national companies (Target, Kroger, Amazon, Panera, etc.) and also local companies. This is a positive trend – these companies recognize that by donating locally, they can encourage loyalty by their shoppers to stay with them and buy even more. It is a marketing tool by the companies – plain and simple.

There are several things that the non-profits on the receiving end must be aware of and make an intentional decision.

  • The non-profit should consider the cost-benefit analysis: is the time & money spent in promoting this worth the money that will be received?
  • The non-profit is doing advertising for the company. Church members will only know about the “kick back” if the church tells them in bulletins, newsletters, and other communications to the members.
  • The non-profit is endorsing the company. If you don’t like what the company is about, then don’t associate yourself with them. You can remove yourself from their list of approved charities.
  • The non-profit may be favoring one company over another one (which doesn’t have this type of plan) and that might upset some church members. Members might raise this perceived favoritism in a business meeting or other venue.
  • The non-profit must know that in many cases, the benefits are relatively small. The charity should not expect this income to pay wages of any employee.

These are the main factors for a church and non-profit to consider when deciding whether to be linked with a company willing to donate some of their profits. Never enter into these agreements willy-nilly – think wisely and strategically about the relationships.


Lead On!