When you decide to engage in donations to charity via your business, you open yourself up to a plethora of different benefits. Aside from the main intention being giving back to the community and helping to make a real change, there are a myriad of other reasons as to why business owners need to apply this tactic sooner rather than later. New research has shown that over 70% of millennials in 2021 report that they would happily spend more with businesses that support causes. This may not seem like a big deal at first glance, but given that millennials actually represent $2.5 trillion in spending power alone (yes, you read that right – trillion), the notion of giving back to the community can be exceedingly powerful for your company’s sales and it’s overall purpose.
So, what exactly are the benefits a business stands to gain by donating to ethical charity causes? Let’s have a look at the top five reasons that you should consider donating to charity as a business owner.
Tax Deduction Time
It would be silly of us to not mention the tax benefits of donating to charity via your business. So…as boring as it is, let’s get it over and done with. You probably already know this but corporate donations are eligible for tax deduction, just like they are when you donate to charity as an individual. However, it is important to note that businesses may not deduct more than 10% of their pre-tax income in a given year. However, a business may carry forward excess donations for up to five years. To put it simply — tax time is a great opportunity for your business to practice corporate social responsibility, all while increasing the business’ tax return. A win-win situation for all!
Improving Consumer Perception
It’s no secret that the consumers of 2021 care about where their money is going and exactly what their dollars are supporting. Now more than ever, consumers want to know that the businesses they support operate in an ethical fashion, all while doing their best to give back to the community or those who are less fortunate/in need. When you are a business that prioritizes donating to charity by contributing some of your profit to a good cause, you essentially exhibit the type of business you are and the values that you stand behind. This is one of the best ways to improve your business’ consumer perception, thus boosting revenue and creating a loyal and trusted following that is certain to benefit your corporation in the long run.
Boost Employee Morale
The foundations of a business’ success rely heavily on its workforce and employee morale. Team morale is absolutely imperative to success — there is no point in having everything else in place without this. Now, what better way to rally up your team than to fight for a good cause? Donating to charity can create a stronger sense of steadfastness, thus giving your staff a bigger purpose than just making money. It can be especially helpful if you make a team decision on what organisations you would like to support. Creating that personal connection that stems from each and every employee to your chosen organizations is a fantastic way to expand your worker’s morale by tenfold!
Increase Your Marketing Reach
It’s no surprise that philanthropic businesses are some of the most powerful in the world. Take for example the business we all know of and love — Microsoft. Under the guidance of Bill Gates, Microsoft has truly set itself apart from the crowd with its charitable giving. To date, Bill Gates has donated $36 billion worth of Microsoft stock to the Gates Foundation which was founded to fight poverty, disease, and inequity around the world. Simply put, donations help to get your company’s name out there, especially if you go the extra mile by sponsoring events or creating your very own foundation.
Helping Create a Better Community for All
Last but not least, donating to charity is a fantastic way for businesses to create a better community for all. Your company’s charitable donations could help improve public parks, schools, community clubs, and homeless or domestic violence shelters. Alternatively, if you choose to donate to a non-profit organization that conducts medical research, you will be doing your part in helping the effort to cure diseases for future generations. The opportunities of donating to charity are endless, extremely helpful, and one of the best things you can do to give back to the community of people that you love and live for.
As you can see, donating to charities can help change your business and work culture for the better. It can also have a dramatic impact on the people in your community, so pick a cause that means something to you and donate with pride! It’s good for business after all.
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