Companies That Give Back Prosper – Spotlight: Rackspace

Rackspace is a hosting service that delivers enterprise-level services to businesses all over the world. They take the time to determine and then integrate the best technologies available for each of their clients’ needs. Their principal products include cloud hosting, email and apps, as well as managed hosting.

They have become a leader in the service of cloud computing, thanks to Fanatical Support®. Beyond being committed to their customers, though, they’re also committed to being an active member of their community. They give back to the public in various ways and are an example of the altruistic benefit a company can have in a community and the business benefits that can have in the long run.

Dedicated to the Community

In 2009, 15 percent of high school students at Austin ISD had no access to the Internet or didn’t even have computers at their homes. Rackspace collected and then refurbished $35,000 worth of computers for the students in need. The following year, more than 85 Rackers, with their spouses and children, came together to update and beautify the Ed White Middle School. They landscaped, painted and built a stage. They also donated a year’s worth of school supplies for more than 500 students.

They also donate to Feeding America. In 2011, Rackspace donated $5 to Feeding America for each customer who signed up for a trial. This goes to show that charity is not a one-time deal, but an ongoing series of actions that has an uplifting effect on the employees and the community.

Companies that Donate to Charitable Organizations Receive Numerous Benefits

Companies that have the ability to assist the community should definitely consider doing so. Companies need to think about the benefits they will receive by donating to these charities.

Some immediate benefits:

Recognition and respect from the community, which spreads positive points of view concerning the company.
This also helps the company to recruit talented individuals and it inspires team-building exercises. People like working for a company that is considered caring.
Donating is always an excellent choice for tech companies who do not have physical products to sell. By doing this, people will be able to see that a tech company is real and selling a real product, even if it’s not tangible.
Corporate sponsorship has been used for many years. Businesses have continued donating money to the charitable organizations in their communities.

Advantages of Sponsoring Charity

An Increase in Visibility & Revenue
One of the largest advantages given to a business that sponsors charitable events and organizations is the increase in visibility they gain throughout their community. In exchange for their financial donation, the corporation’s logo and name are visible on all promotional material, mailings and advertisements that are produced by the nonprofit organization. This increase in visibility will lead to increased recognition of the brand, which means increased sales and revenue.

It’s rather common for a corporation that sponsors charitable organizations to be given benefits. For instance, if a business donates money to help produce a nonprofit agency’s gala, most likely, they will be given tickets to the event. At this event, they will receive a multicourse dinner. They may receive gift bags containing unique and possibly expensive items. They might have the ability to meet celebrity guests, one-on-one. There may be an area where they can network, giving opportunities for the continued development of their business.

A Charitable Image
Businesses that donate to local causes related to fighting disease, poverty or to cultural institutions such as opera, art museums or ballet, will be respected in the community. This corporation is not considered just a profit-seeking business. When a business invests in the community, it is seen as being committed to its neighbors. Many individuals decide what they will purchase based on this quality. Residents in a community will usually show favor to their local businesses. Many times, they will make an effort to support their community, even if it is not their best option.

Companies can help others, while helping themselves. These are the reasons that donating to charity is beneficial to businesses.