This is a decision that is totally up to you and your business!
Donating locally means that you are supporting and boosting your own economy. Supporting local will allow you to directly impact those around you and provide opportunities for growth in your community.
Donating to local causes and organizations also allows for the use and development of local resources. An example of this is if you were to support a local youth mentoring program. Those facilitating the program could use some of the funds to locally purchase food, drinks or materials for the session, which in turn supports local businesses and suppliers.
When you support local, it can also help to encourage others within your community to donate. Showing local businesses how you are involved in the community and its benefits to your organizaton is a powerful tool to encourage others to become involved.