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The Benefits of Donating to a Charity for Your Small Business

The Benefits of Donating to a Charity for Your Small Business

If you’ve been considering donating to a charity, but don’t really understand how the gesture would benefit your business, then you came to the right place. Business experts agree that charitable giving can provide businesses with a sense of purpose and help it in countless other subtle and overt ways. Keep reading to discover how your small business can benefit from donating to a charity this year.

You Increase Morale among Your Employees

Helping others always feels good, and everyone in your business would benefit psychologically when they know that they’re making a difference in someone’s life. Many studies have found that people prefer working for companies that are involved in charity causes. Therefore, when you start donating to a charity, your business would attract more candidates than usual, and have a better chance of attracting highly qualified candidates.

Secondly, getting involved with your community can help increase your employees’ morale and keep them happy. The whole process of planning and participating in volunteer activities during work hours can be fun and motivating for the entire business. The cause gives everyone the chance to interact outside the business premises, and makes your employees more satisfied by giving back to the community.

You Get Free Publicity

Getting involved in charity events and volunteering your time are awesome ways to raise awareness about specific causes and promote your business. You and the organization or event you’re partnering with can spread the word through photos, videos, and other types of content that carry the name of your business. Chances are the content will end up on social media platforms, websites, and other similar places. Remember that taking part in noble causes is an effective way to convey your company values and culture to your community.

You Create Goodwill

Regardless of how insignificant a certain cause may seem to you, remember that people always notice. When you sponsor a local charity event, support physically challenged kids or seniors, donate critical supplies to disaster victims, or even volunteer at community cleaning initiatives, you can expect people to notice the noble gesture. When they do, they become more likely to support your business, as people like supporting genuine and caring businesses. In other words, donating to a charity can easily pay you back in increased business, customers, and customer loyalty.

A Cone Communications study found that 85% of consumers usually see businesses that give to charities they care about in a more positive light. That means that giving back to your community through charitable giving can help you strengthen your relationship with your existing customers, and create new relationships.

You Get to Grow Your Network

Networking is important, and many businesses struggle to network. However, networking always has the biggest impact when it happens naturally. When you’re getting involved in charity events, you’re more likely to meet an important someone with whom you have a common interest, such as Claire Babineaux-fontenot. Such events make interactions easy, which means that you’re likely to find contacts when you attend charity events to make your donations.

You’ll Feel Good about Yourself

As a business owner, giving back to your community can help you tremendously. Like mentioned earlier, the feeling you get from giving to the less fortunate is always good, and it can provide you with the energy you require to steer your company in the right direction. When you feel good about the choices you are making for your business, it can make you more confident when it comes to making future business decisions as well.

You Enjoy Tax Deductions

When you donate to a charity, you become eligible for a tax deduction. Tax-deductible donations include things like charity sponsorships, cash donations and inventory or service donations. Generally, you can enjoy deductions on your charitable donations of up to half of your Adjusted Gross Income, and you can claim your contributions and volunteering expenses as contribution deductions on your income taxes.

You can write off the cost of materials you purchased for your charity projects and other costs by itemizing your deductions. You can also obtain a tax deduction for the fiscal equivalent of your charitable donations.


If you’ve been thinking of donating to a charity, this is the time to make the move. Making the donation can help your employees become more productive. It can also help your business enjoy free publicity, customer goodwill and loyalty, better networking opportunities, tax deductions, and help you feel good about yourself.

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by Rayanne Morriss // Rayanne Morriss is currently working towards her BA from Oregon State University. She loves to write, read, travel, and paint. She enjoys finding new coffee shops with friends and expanding her cooking skills with her husband.

Opinions expressed by contributors are their own.