Five Reasons Your Business Should Support Charity

Posted by Admin | June 18th, 2014

Businesses are all about making money. Because of this, many businesses may be hesitant about allocating too much of their budget to charity causes. While charity does require the donation of time and money, it also has the potential to provide substantial dividends to businesses. Just consider the following five business benefits of supporting a charity.

1. Good advertising. While charitable giving can be an anonymous act, it does not have to be. In fact, it is entirely acceptable for businesses to make their donations public. For many businesses, such disclosure is part of being ethically transparent. Because these types of donations to charity are usually public knowledge, businesses can see such expenditures as part of an overall marketing plan. Any time a business can get its name into the public eye, potential customers are being reached. Additionally, this type of advertising is likely to reach new customers.

2. Customer relations. Many customers feel jaded about competition among businesses, which can make them wary. However, when a business reaches out to the community through charity, customers can see the business in a new light. This unique type of customer relationship moves beyond the standard business model, which has customers on one side and businesses on the other. In this context, businesses and customers can be united together for a common goal, which is likely to elicit trust and respect on a whole new level.

3. Employee pride. Businesses with a strong charitable involvement are more likely to have a better internal community. If a business is all about profit, employees will connect differently to the company. On the flip side, businesses that show a real commitment to good causes can build better longstanding relationships with employees. In fact, if a business is known for its good works and not just its bottom line, then the business will likely attract the best employees, which can lead to a better talent pool within the company.

4. Effective branding. Charity can be part of an effective marketing plan, but the impact can be even more significant. Branding is how businesses define themselves. A brand is essentially how companies are recognized. While marketing tactics can help establish a brand, charity work can go a long way to advance this process. When a company is strongly associated with good works in the community, the overall brand is much more effective.

5. Tax breaks. Lastly, giving to charity is rewarded by the government. Businesses, just like individuals, can declare charitable giving on their taxes. This can yield certain tax breaks, which can be very helpful when trying to minimize the cost of filing. Charitable tax deductions will vary, so it is important to research the matter carefully and to ensure that all procedures are legal before attempting to write off such giving.

Charitable giving can have a positive impact on the community. As these reasons show, it can have a positive impact on any business as well.