Charity comes in all shapes and sizes. After looking at recent studies, millennials have driven the social responsibility movement with a proportion of 70% saying that they spend more of their hard-earned cash on brands that support good causes. Millennials have an amazing spending power of £2.7 trillion! The notion of ‘giving back’ may be a very powerful tool that you can use to grow your companies sales and better still, it will emphasise to your customers and prospects that it’s not all about the money…
There are many companies out there that are coming up with fantastically creative ideas that do social good. A good example of this is the recent Stella Artois’ “Buy a Lady a Drink” campaign, which aims to provide access to fresh drinking water for women (mothers) in third world countries. one thing to remember is that you don’t need a huge budget or even a marketing team to deliver a strong ‘giving back’ campaign.
Another fantastic way to drum up support for a charity of your choice is by holding corporate events that encourage people to donate. Most small businesses can make a charitable donation each year and it’s another way to reach out to other small businesses so that they can do the same, this is a win-win for you as it also means you can make new connections along the way.
There are several benefits to corporate donations, here are four that you may want to take into consideration:
Employee Morale
They say that your employees are your greatest assets and there is nothing better than an employee that feels stimulated by something other than just working for the company. Corporate donations allow companies to take an active interest in their communities which, in turn, can lead to a massive boost in your employees’ morale.
Some larger companies give their employees two days a month where they can help the community doing things such as painting fences at the community centre or working alongside disadvantaged children. according to a 2016 Deloitte study on volunteering, millennials were “twice as likely to rate their corporate culture as very positive” if their company allowed them to take part in any form of volunteer work. If you allow your employees to feel good, it allows them to feel better about themselves and also increase their emotional attachment to their employer.
Increased Marketing
Some of the most powerful businesses in the world are those that take more of a philanthropic approach. Look at this for an example, Apple matches all of its employee donations which have resulted in them donating more than $78 million to different charities worldwide! A great marketing exercise, of course, is utilising the power of social media to encourage people to a worthwhile cause of their choice.
By asking for donations through the powers of Facebook not only puts your business out there but also allows you to portray it in a good light. A rule of thumb that needs to be considered is that make sure the event or charity that you promoting mirrors your own companies goals. For example, if your company sells sports equipment, consider backing a local sports team or an active, sports-related event. This will show your prospective clients that you care about your business and your local community.
Tax Deduction
This is one of the immediate benefits of corporate donations. You may not see an instant impacting on donating your time and money to your community but you will notice quite quickly the tax savings. Obviously, businesses should not donate to worthy causes with the only expectation of financial gain, but there are financial rewards for helping a charity in need.
As a business owner, you will find that you are entitled to tax deductions if you sponsor charities or events, but you should make sure you go through the rules with a fine-tooth comb to be sure that you are complying with all tax requirements.
It has a positive impact on your society
As you already know, donating to charity through your business has a number of benefits, but one of the most important ones in obvious – you should give back to your community. The money that you and your company give help to better serve your community, and after a while, it will be very apparent to the public and your efforts will not go unnoticed.
Your company charitable donations could help to improve a number of things such as local sports centres, schools, parks giving younger children the chance to play in safer environments. There are other options also, if you choose to back a nonprofit organisation that conducts medical research, you could be one of those responsible for helping to cure diseases. The opportunities are limitless and can be extremely liberating.
There are many reasons why it is a good idea for companies to get involved with charities. One thing to remember is that try not to dwell on different organisations and charities for too long, select one that speaks to your heart back it as well as you can. Donating and getting involved in a charity can help change your business and fulfil your employees and also have a dramatic impact on others
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