When businesses look at potential strategies to improve their business and give them a competitive edge, donating seldom makes it on the list. After all, fundamentally, a business is built to make money, not give it away. But there are many reasons why you should start a tradition of corporate giving. Here are six reasons why donating can lead to business success:
Employee Morale Boost
Philanthropic projects can boost your team’s morale. People are more inclined to work harder if they know their efforts are going towards a worthy cause, whether it’s helping homeless people with basic necessities or rescuing animals from abusive owners. If your workforce is needing some spiritual reinvigoration, consider donating as a way to inject enthusiasm back into the workplace. When picking out a charity or cause, allow your employees to play an active role by asking them for ideas and suggestions. You can also host team-building events that raise awareness and more support from others in the community.
Brand Presence Improvement
Nowadays, consumers know that they have the power to shift business success with their money. They support brands whose values align with theirs. If your store or office has a cutthroat, all-business-and-profits image, consumers might not want to buy your product/service or advertise you to their circle of people. Donating some of your profits makes you less of a corporate suit and makes your brand more human and relatable. It can help foster new relationships with customers and investors who are as passionate about a cause as you are. For instance, brands that donate their proceeds to end illegal wildlife trade or help with species repopulation can get preferential treatment from consumers who are impassioned about these causes.
Networking Opportunities
Networking is an essential part of running a business, yet it can be tricky and exhausting to find opportunities to do it. Donating to reputable car donation charities, for instance, can be an effective networking tool and can have the biggest impact since it lets you build connections organically. Charitable events also tend to attract more people since elusive contacts who wouldn’t normally come out to support business events are enticed to come out and support your cause. Lastly, fundraising events can help you get the right business partners since it draws equally passionate, financially able, and knowledgeable people to your cause.
Profit Increase
The better your brand presence is, the easier it is to attract new customers and retain existing ones. Today’s generation of consumers factors in brand presence when picking which company they want to purchase a product/service from. If your business is painted in such a high moral ranking, people will likely choose you over competitors with minimal marketing necessary. And because a charitable approach also boosts your workforce’s morale, you’ll also benefit from improved workforce productivity and output.
Tax Advantages
Perhaps one of the most commonly known and immediate benefits of corporate giving is eligibility for tax deductions. You might not instantly see how your donations improve your community’s wellbeing, but you can instantly see the tax savings. The maximum donations you can deduct from your tax will depend on the type of contribution and business. You’ll want to check with the Internal Revenue Service to determine what rules you need to follow and the requirements you need to submit in order to maximize your tax deductibles.
Economic Progress
Although giving to a charity won’t necessarily change the economic course of the country for the better, you can improve the local community’s economic wellbeing through fundraising events and regular donations. Your business’ charitable contributions can help improve local schools, road infrastructure, hospitals, and parks. This, in turn, helps attract more people and businesses into the area, which means more potential customers for your brand.
Perhaps the final benefit to corporate giving is that it gives you an individual sense of purpose and fulfillment that you can rarely get from the day-to-day minutiae of running a business. While donating does offer many benefits, execution is key to enjoying them. Make sure you have a deep understanding of your accounting and finances and how much you can afford to give and over what time frame as blindly committing money to a charitable cause can hurt your business’ cashflow.
