Giving in Canada: Customers prefer companies that give back
Canadians value corporate giving — 70% of Canadians are more likely to purchase from companies that give back
Actively supporting a number of causes, and with a number of non-profit organizations and social enterprises as clients, Now Impact Studio is a company focused on giving and social impact — but where does giving fit in the customer experience? A report from The Upside Foundation, a charity that enables startups to give back by sharing their financial upside, examined Canadians’ attitudes toward corporate giving and the effect it has on purchasing decisions.
The report found that 70% of Canadians are more likely to purchase from companies that support charities, with 81% of Canadians agreeing that all companies should give back, and 68% saying they would be more loyal to companies that have a corporate giving mandate.
“The numbers speak for themselves—charitable giving helps drive economic growth because Canadians not only prefer to support businesses that give back, they are also willing to spend more at businesses that do so.”
— Debbie Gamble, Chief Officer of Innovation Labs and New Ventures, Interac
While one-fifth (20%) of Canadians feel that after doing their holiday shopping they should be giving back to charities, yet another good reason to maintain control of spending by using their own money during the holidays.
The report was commissioned in collaboration with Interac, The Upside Foundation’s Innovation Sponsor, to celebrate #GivingTuesday, which takes place annually the day after Cyber Monday, and encourages Canadians to give back with their time or money.
When it comes to purchasing decisions, nearly half of Canadians say they have based their purchase on whether or not a company was considered charitable. What’s more, 48% are willing to spend more on products from companies that give back. The report also found that corporate giving has a long-standing impact on consumers—almost a quarter of Canadians say they have purchased from a company more than once or changed their shopping habits entirely as a show of support for that company’s charitable giving.
“Charitable giving has been a central part of our business and brand ethos since day one, so donating company equity for charity through The Upside Foundation was a simple decision for us. Companies have a responsibility to give back to the communities that have supported them—not only is it the right thing to do, it’s also a relatively simple way to better align your brand with the values of your employees and customers.”
— Tyler Handley, Co-Founder and CEO of inkbox
To celebrate #GivingTuesday for example, Interac donated $10,000 to Tech4SickKids, a SickKids fundraising campaign targeted at the tech community, which Now Creative Group also supports, having sponsored a Tech Night Out recently. The overall campaign is aiming to raise $25 million to build a new emergency room.
For companies who would like to give back, but don’t have the resources to make cash donations today, donating equity for charity is a way to make a longer-term, meaningful impact on the causes they care about most.
Over 200 companies in Canada, including Now Impact Studio (through King Street Media), have taken the pledge to donate equity for charity. Companies can fill out the online pledge form to join.
