Donating to charities is, obviously, a good thing. It’s a way for business owners, both big and small, to help out their community by donating money, products, volunteer hours, or other charitable efforts to the different organizations near them. Not only is being charitable a good thing to do, but it’s also a great marketing strategy, especially in the social media era. Donating to charities or other non-profit organizations will label you a “good” company, and as a result, people will want to support your business.
There are many benefits for businesses that are supporting charities in publicity, finances, and community impact. Here are some of those benefits.
The most immediate benefit to your business by supporting a charity or non-profit organization is the tax deduction you’ll receive as a result. Donations that will get you a tax deduction include event sponsorships, inventory or service donations, and, of course, monetary donations. Generally, you can get up to a 50% tax deduction of your Adjusted Gross Income for your charitable contributions, so long as you follow the rules to avoid tax problems.
To benefit from this, make sure you work with a non-profit organization that is approved by the IRS, and that the organization issues you a tax form that you can file in your tax return.
Up-and-coming talent can afford to be picky with where they apply for work because they know their skill set and experiences will afford them that privilege. Companies have upped their employee benefits as a result to draw people in, but a 2007 study showed that 62% of 18-26-year-olds preferred to work for a company that provided volunteer opportunities to their employees. To influence young talent to your company, offering volunteer opportunities and a sense of idealism in your mission statement will likely draw these people in to apply.
Additionally, being charitable and letting your employees participate in those types of events will make the workday more fun and boost employee morale. And, of course, it’ll give everyone the satisfaction of having given back to their community.