Businesses serve the community by offering goods and services. But that’s not enough. They have to be actively involved in social issues. Your business can benefit from charitable giving in the following ways.
Charitable Giving is fulfilling
Some people live in the harshest environment. They don’t have access to water due to drought. Others can barely afford a single meal every day. In the remote parts of the world, people use traditional ways to heal themselves. Healthcare is expensive, and they have to travel vast distances to get to the nearest hospital. Others don’t believe modern medicine works because they’re illiterate.
When you give back as a business, you’re taking a stand against poverty. You’re aiding those that can’t access basic amenities like healthcare, water, and food. The charities you give money to invest in these people. They collaborate with governments to build schools, clinics and dig boreholes. Your funds are utilized in these projects. Therefore, giving back is fulfilling. You can sleep better knowing you’re making the world a better place.
Tax Deductions
A charitable donation is a deductible expense. It allows you to lower the taxable amount. The IRS recognizes donations in many forms. You can donate an asset to a charitable organization. You can also sponsor a community event. The amount used to organize that event will be tax-deductible. You can also donate your services. Cash donations are equally recognized by the IRS.
However, there are limitations to using charitable donations as deductions. An individual can deduct one hundred percent of their adjusted gross income while organizations can only deduct up to twenty-five percent of the taxable income. The charitable organization must give you a tax form, which you’ll use as evidence or proof of charitable donations for filing taxes.
You Attract More Customers
Everybody wants to help those less privileged than themselves. The only problem is they don’t know how to do that. When you promise to deliver a portion of your profits to charity, it gives customers a reason to purchase your products. That’s because you’ve helped them solve a moral problem. Through your brand, they can give back to society and feel good about themselves.
When you do good, the universe rewards you. Your customers will refer their friends to you, resulting in more sales. Your profit margins will also rise.
Raise Awareness
When you sponsor charity events, you raise awareness on issues that affect society. The nonprofit gains more exposure and attracts more donors. Some of those donors will be corporations interested in working with you for future projects. Therefore, charitable giving helps you to expand your network.
The media can broadcast your event for free. Journalists are interested in people or businesses that care about people. That’s why they’ll show up to your event uninvited. Fortunately, the exposure is good for your brand.
Low Turnover Rates
Generation Y is very talented because they grew up in the era of technology. They have been exposed to information all their lives. They equally make up a significant percentage of today’s workforce. Regrettably, they’re hard to satisfy. This generation doesn’t care about money. Therefore, increasing their salary won’t guarantee their loyalty.
Generation Y cares about the environment and society. They want to work for a company interested in the same things as them. That means supporting a nonprofit will place you in their favor. They’ll be happy to work for a company with a conscience.
But you have to be consistent. You cannot donate to charity only once. You have to make it a habit. Otherwise, the workers will think you were faking it.
