Importance of Community Outreach for Small Businesses

By: Joe Conover, President,
July 28, 2025 | Growing Business
Group of small business employees actively participating in community outreach by donating food

Businesses are born out of passion, desire and a lot of hard work. And as every small business owner knows, one of the keys to building a successful venture is making a profit.

So why should a small business invest in community outreach and service? The answer is pretty simple. When community outreach and business engagement come together, everyone benefits — your business, your employees and your community.

The health of a local community impacts the health and well-being of the businesses within it. Community outreach does more than create goodwill. It also supports your businesses goals and provides a return on investment. This is achieved by fostering positive brand awareness with consumers and enhancing employee retention. What does outreach mean in business? It means actively connecting with and contributing to the community you serve.

Understanding the "Financial" Benefits of Community Service for Small Businesses

A small business built on a foundation that values people and community engagement is inherently more successful in the long run. Building a culture of community service can help your small business create value far beyond its core products or services. It's a powerful tool to build positive brand awareness with current and prospective customers, enhance the skills of your workforce, and significantly support employee retention. These are the core benefits of community outreach programs.

Building positive brand awareness

Consumers want to purchase from brands whose values align with theirs. Recent trends consistently show that a significant portion of consumers, particularly younger demographics, are more likely to buy products or services from companies that contribute to charities or have other philanthropic programs. They are also more likely to recommend these businesses to their friends and family.

Supporting local nonprofits can also help create positive brand awareness by getting your business name out in the community — almost like another form of networking. For example, having your company logo prominently displayed at a community event or on a billboard (like at the high school baseball field) can cause people to wonder what your company does and create conversation that can lead to business connections and potential customers down the road.

Enhancing Employee Engagement and Retention

Creating a workplace culture of community service will have a positive impact on your employees’ health and happiness, as well as the overall morale of your workplace. Providing flexibility in your employees’ work schedules so they can serve the community shows them that your business cares about more than just making money. It also provides an opportunity for work/life balance and fosters stronger employee engagement.

Employees participating in skills-based volunteer programs often experience higher job satisfaction. Taking a break from the workday can help employees clear their heads and creates the opportunity for employees to get more creative and build their skills in a different way that will help them in the workplace. This is a key benefit of community service for your team.

 

Strategic Ways Your Business Can Begin To Give Back

There are a number of ways your small business can begin giving back through local charities and community engagement. One of the most important first steps is involving your employees in the process. Find out what they are passionate about and consider supporting community organizations that align with those passions. This approach sends a strong signal to your employees that their causes are important to you and the business, significantly boosting employee engagement.

Next, think creatively. Community service doesn’t have to only involve making a monetary donation. Whether it’s donating time, products or services — there are a number of ways your business can begin to incorporate community service into the company culture.

Here are a few community outreach ideas to help your business get started.

1. Join a local service organization or nonprofit board

Encourage your employees to volunteer their time and talent by joining local service clubs or nonprofit boards. Many of our employees are involved in these types of service organizations. By sitting on the board of a local nonprofit, our bankers are able to use their financial skills and knowledge to help provide guidance and support to organizations that not only benefit the community but also align with their personal values and commitments. This is an excellent example of community outreach in action.

2. Help a local nonprofit advertise a fundraising event

Most nonprofits have at least one major fundraising event a year that they rely on to help fund their mission. If your business has a retail space, consider partnering with a nonprofit to help them advertise their event within your business. We have found that our bank lobbies and teller windows are great spots within the community for nonprofits to increase awareness of and participation in an upcoming event. If your business doesn’t have a physical retail space, you can still play a vital role by advertising the event to your employees and encouraging participation as a way to build community while also supporting a good cause.

3. Make giving back fun

Giving a monetary donation to a local charity should go beyond asking employees for money and writing a check. It’s also an opportunity to have some fun and build community within your organization. Have an office that loves animals? Pick one month out of the year when employees can pay money to bring their dog to work. Having dogs in the office can help bring a little joy and stress relief to your employees. And all of the money collected can support your local animal rescue league. Want to support your local food pantry at Thanksgiving or Christmas? Have your employees flex their creative muscles by using nonperishable food items to build a holiday-themed display. The winning team can receive a prize, and all of the food items can be donated to the food pantry. It's a win-win for business engagement and community outreach!

Need help taking the next step?

Whether you need Business Checking, Savings, or Treasury Services - we can help. Because you should think big when it comes to your success.

Meet Our Business Bankers

Looking to grow your business?

 Learn from the success stories of others and get useful ideas and information that could help your business grow.

Subscribe to the Biz Buzz Newsletter

Proudly Serving Iowa and Nebraska

Experience the Northwest Bank difference--the better banking experience. Contact us today and let's build a brighter financial future together!


 

Meet with a Banker

Let’s get something on the calendar. One of our friendly team members is ready to assist you.

Call Us

Mon - Fri: 7:00 AM - 7:00 PM CST
Sat: 8:00 AM - 12:00 PM CST

General Support: 800-678-4105

Find a Branch or ATM

Find a Northwest Bank location near you. We look forward to seeing you.