Local Businesses

Local businesses (such as print shops, independent grocers, and locally owned retail stores) typically support nonprofits in two primary ways: direct financial contributions and in-kind support. In-kind gifts often carry significant value, as donated products, services, or volunteer time can reduce expenses and strengthen your leverage when seeking additional grants.

While corporate philanthropy accounts for just over 7% of charitable dollars, the real value often comes from in-kind contributions, sponsorships, and the personal giving of business leaders, especially at the local level. 

Begin by requesting in-kind products or services. Once a strong working relationship has been established, you can transition to requests for financial support. Manage in-kind gifts with the same rigor as cash grants: provide public recognition and share a year-end impact summary, regardless of gift size.

Starting with local businesses before pursuing foundation or larger corporate funding strengthens your case with other funders. Demonstrating local backing signals community credibility, and because application processes are often streamlined, the likelihood of securing support is high.

If securing cash support from local businesses is challenging, consider expanding your corporate revenue strategy through national product donation partners such as Good360, NAEIR, or TechSoup. These channels diversify your income while increasing the value of your corporate support. Always assign a dollar value to in-kind contributions and integrate this into your grants reporting and analysis.

Effective research is essential for cultivating corporate support. Business leaders respond more favorably to requests that demonstrate familiarity with their operations and reflect opportunities to elevate their brand or services. Without research, any support you receive will be accidental and not sustainable.

Don’t hesitate to offer multi-year partnership options to local businesses. Many companies plan ahead and appreciate nonprofits that demonstrate the same level of stability and long-term vision. While not every business can commit beyond a single year, presenting multi-year opportunities shows strategic clarity and can significantly increase the likelihood of securing sustained funding when the business is able to do so.

National surveys show that the vast majority of small business owners give back to their communities. About nine in ten donate money to local causes, and more than six in ten provide in-kind support such as space, inventory, or services. Research also shows that when nonprofits bring senior business executives onto their boards, fundraising and program revenues increase significantly. Inviting business leaders to serve on your board can deepen relationships, expand your organization’s expertise, and open doors to both cash and in-kind support.

IRS guidelines govern what qualifies as an in-kind contribution. Review Publication 526: Charitable Contributions to ensure your valuations and reporting follow current standards.

Local businesses respond best to requests that align with their core competencies and geographic priorities. Keep both the nature of their business and the communities they serve at the center of your outreach strategy.

Many businesses now focus their philanthropy on signature programs aligned with their brand identity. Identify where your mission intersects with their business strengths and illustrate how adopting your program as a signature initiative will deepen their community impact and visibility. Including potential marketing angles can strengthen your case.

Local and regional businesses increasingly seek meaningful partnerships, not transactional giving. Shift your mindset from “seeking a donation” to “building a value-aligned partnership” that supports the company’s goals as well as your mission.

Before approaching a business, understand its financial health and its history of community support. A company experiencing rapid growth may appear financially strong but may not yet have the cash flow for a monetary contribution. In these cases, product or service donations may be the more realistic request.

Identify potential business supporters and develop robust profiles for each. Understand their products or services, number of employees, customer base, growth trajectory, and leadership affiliations. Strategic intelligence strengthens your approach and sharpens the ask.

Begin your prospecting by identifying the most obvious business partners—those already connected to your organization. This includes companies you pay regularly, such as utilities, banks, technology providers, or service firms. These existing relationships often serve as the most natural entry points.

Some local businesses appear in our databases if they maintain formal corporate giving programs. Visit the Charitable Giving database (U.S., Canada, or International) and use the search-by-name field or select “Corporate Giving Program” under the Type of Grantmaker filter to identify potential business funders.

When approaching local businesses, expect a range of application processes, from formal applications to informal conversations, emailed requests, or in-person meetings. Determine the preferred approach before submitting your request to ensure alignment and efficiency.

Outcome measurement is standard practice in the business community. Clearly describe how you will measure impact and how you will share results. Including examples of how businesses can use the data in their marketing or communications can strengthen your proposal.

When requesting cash support, consider highlighting opportunities for employee involvement or skills-based volunteering. This positions your request as a mutual investment and deepens engagement with the business.

Local and regional news outlets regularly cover emerging business trends. If relevant, incorporate quotes or references from these sources in your request. Doing so demonstrates up-to-date awareness of the business’s environment and priorities.

Most local businesses make giving decisions based on a blend of community commitment and strategic interest. Offer a menu of marketing and visibility benefits that you can tailor to each request. Thoughtful recognition elevates your value proposition.

If you lack a clear connection to a business, create one by referencing how their products or services support the broader community (ideally in ways relevant to your organization’s work). Demonstrating familiarity builds rapport and strengthens your approach.

Always keep the company’s perspective in mind. A business experiencing fast growth may appear financially strong but may not have the liquidity for a cash request. Matching your ask to their reality increases both the likelihood of success and the integrity of the relationship.

Consistency builds trust. Use a Memorandum of Agreement (MOA) to outline mutual commitments for even the simplest support arrangements. Documenting expectations enhances clarity, reduces misunderstandings, and increases your organization’s professional credibility.

If you secure support from a local branch of a regional or national corporation, leverage that relationship for an introduction to the company’s headquarters. Local endorsement often increases your chances of successfully accessing corporate-level philanthropy.