Individually we all have a cause that we like to support. My husband and I sponsor a Victorian child through their education through The Smith Family and we foster rescue dogs through Melbourne Animal Rescue until they find their forever homes.

As a business we support community projects by offering our services pro Bono to sporting and community groups; we also support our chosen charities financially on top of our individual contributions. But why should your business support your local community?

For one, supporting your local community group has free marketing and advertising advantages. You can offer a voucher to your local group for use at an auction event in exchange for advertising space in Web and print, you can support your local group behind the scenes for free in exchange for free advertising and you can even promote the community group in exchange for return promotion. Many local groups are happy to accommodate theses types of arrangements so it's just a case of touching base with them and offering your service or product.

Secondly, research suggests that businesses who give back to their community are more likely to receive more community support. Businesses who hire locally and who donate to a local cause are looked upon more favorably by their customers as a point of difference as opposed to businesses who do not. When it comes to choosing between two local businesses offering identical products or services and similar pricing, it seems to be the business that establishes itself as a contributing community member who will win the business, even if they are slightly higher priced.

Finally, regardless of how you contribute to your local community, the experience will inevitably give your business and it's staff more experience and confidence. If nothing else, your business is building connections; connections that are so valuable that they're invaluable.

How Does your business contribute to your local community?