Why Supporting Charity Is Good For Your Business
When a company gives to charity, it may indicate that it’s trying to become more socially responsible and meeting its obligations under corporate social responsibility.
Doing good for the welfare of society also creates the impression that the firm is concerned about the needs of its customers.
And when customers sense that a business has moral convictions and is really concerned about the well-being of people and the environment, they’re more inclined to admire and favour the company over others.
Moreover, the good thing about becoming socially responsible is that it benefits not just society but also the corporation. Here are several ways in which your charitable contributions might return the favour:
1. Boosts Employee Morale
An organization’s working culture can be greatly enhanced by participating in or contributing to a charitable cause. For starters, it fosters a sense of pride among employees about working for a company that values giving back to the community. Moreover, this also serves as an excellent sign that the company’s leaders are likewise concerned about its workers.
Second, it makes the employees feel like they have a purpose, leading to higher employee engagement. There’s a higher chance that employees will work harder and provide their best efforts to the organization if they believe they’re part of something that significantly impact society.
Finally, they get a break from their jobs by volunteering with charitable organizations. This can be a time to get their mind off work. So, if your firm organizes a charity event, ask your employees whether they’d want to get involved. You may also seek assistance from organizations that provide fundraising services, such as Woods Valldata, to help you arrange the event.
2. Enhances Brand Image
Giving back to the community is an excellent method to increase the company’s visibility and get your name out there in the public eye. It may help you establish your company’s identity from the ground up, especially if you’re a start-up business.
When you donate to an event, the organizers will include your firm among the event’s sponsors, allowing individuals who attend the event to see your company’s name.
People positively associate with businesses giving back to their communities, and this is the type of motivational information that gets passed on to others. They will also be more likely to remember you if you make a habit of regularly contributing to charitable organizations and events via things like sponsorships and donations.
Nevertheless, you need to ensure that the event is in line with your company’s objectives. For instance, if your company sells school supplies, you should seek charitable organizations whose primary mission is to support the children’s educational endeavours.
3. Increase In Customer Loyalty
Giving back to the community is one way that any company may improve its reputation and appeal to customers, who base their purchasing decisions on how they feel about a business.
These days, consumers place a more significant amount of trust in businesses that demonstrate concern for both the community and the environment. They’re even willing to pay higher costs if it implies that more money will be donated to charitable organizations or put toward protecting the environment.
For instance, if you sell a product and then make the announcement that you’ll donate half of its proceeds to the victims of a particular disaster, you’ll be able to win over their hearts. You’ll also convince them to purchase more from you than your competitors.
This is because your company gives them the impression that they’re contributing to the solution, even if they’re not directly engaged. Thus, you’ll earn your customers’ confidence, attention, and respect if you contribute to issues that are important to them.
4. Tax Deduction
You may be eligible for a tax deduction by giving donations to charity organizations, including those that are non-profit. You can reduce the taxes you owe not just by the amount of money you give to charity but also through event fees, parking charges, or amounts spent on travel that are directly linked to your charitable contributions.
However, for a contribution to be eligible for a tax deduction, it must first be donated to an organization that has been recognized as a Deductible Gift Recipient (DGR), implying that you cannot profit in any way from the charitable event in question.
You also need to make sure that you’ve followed these procedures to ensure that your company is eligible for the tax deduction:
- Contribute to an organization that meets the criteria; you can look them up on the ACNC Charity Register to determine whether they meet these requirements.
- Make a monetary or property contribution.
- List your deductions on your tax return.
- Make sure to keep track of the date, the organization’s name, and the amount of your donation.
Donating to charitable causes is an excellent method to demonstrate to customers and other stakeholders that your company cares about both the community and the environment. No matter how tiny it might seem, it’s important to show appreciation to individuals who have helped your business in some way.
After all, it’s not just the community that will profit from the measures you do; your own firm will as well. You may increase the morale of your employees, improve the image of your brand, develop a customer base that’s loyal to your business, and qualify for tax deductions all by engaging in charity activities.