At independent agencies, charitable giving is a win-win situation. It helps the community by providing much-needed resources and assistance, and it also helps the agency by bringing in new business. Altruism may be the primary motivating factor for starting a philanthropy program, but most agents report that their contributions pay off in tangible ways. In this blog post, we'll explore how charitable giving can benefit the community and the independent agency.
Giving back to the community is one of the most rewarding aspects of running an independent agency. Recent reports clearly show that the independent agency channel's commitment to charitable giving goes far beyond what many other small businesses invest in.
A report published by Liberty Mutual and Safeco Insurance shows that 92% of agencies donate their time, and 94% give money. In addition, the report found that hands-on involvement is nearly as significant as financial support. This charity work helps agencies build stronger ties with local communities.
The report also found that nearly three-quarters of agencies volunteer as a team which helps to strengthen internal relationships and foster a positive culture. In addition, more than two in three agencies offer paid time off to their employees who volunteer, and one in three agencies even invite their clients to participate.
Despite altruism being the primary reason agencies launch philanthropy programs, the majority of agents report generating new business as well. The majority of those surveyed indicated their charitable giving has led to more agency referrals. According to a 2018 Mintel study, 73% of Americans consider charity when making their purchases.
Giving back can also positively impact attracting the next generation of talent. According to Zety, 62% of Generation Z candidates look for a company whose values align with their own, and 61% look for a company with a purpose beyond just profitability.
By using their resources to benefit the community, independent agencies can improve their reputation and strengthen their customer base and grow their business. That's why independent agents need to make sure that their giving back strategies are strategic and targeted—so they can maximize their impact and get the most out of their philanthropic efforts.
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