Having a donation program for your business will not just benefit the donations recipients, but your business as well. Whether you own a small, or large, company, or business, it is always important to give something back to your community. Most successful companies support charities and non-profit organizations that strive to make the world a better place for humans. These organizations are always looking for financing in order to accomplish their missions.
Donation Program Can Develop Your Business
The success of your company is not just about hard work. It also encompasses loyal customers who may be part of the local charities and non-profit organizations. Regardless of the organization that you choose to donate to, there will always be benefits that your business will get from donating.
1. Tax Deductions
It is possible for your business to claim volunteer hours as well as contributions on income taxes. Once you itemize the deductions, it is possible to write off the time that the business spent on a volunteer mission, and then add the monetary value to the donations given and claim them. However, you should work with a recognized charitable organization and keep a record of the donated amount as well as the name of the charity organization.
Tax-deductible donations include sponsorships for events or charities, volunteered services, cash donations and donations of services or inventory. Generally, a business can get even 50% on its gross income after adjustment if tax code is followed closely and charitable giving included in a business model.
2. Increased Sales
Through donation, a business shows its social consciousness to the people. This compels consumers to believe that the business offers products of superior quality. As such, donating can actually translate into business success and this will attract more consumers.
By donating, a business gets customer support. Cone Communications did a research in 2010 that indicated 85 percent of consumers get a positive image of the product or business that supports charity organizations. This implies that when a business participates in charity work, it shows its concern for the community and this draws support.
3. Free Publicity
Engaging in volunteer activities and donation programs raises awareness not just about a particular cause, but also about your business due to partnership in events, or with a charity organization. People get information about an event that your business sponsored or took part in through social media or even your business website. This saves your business money that it would have spent on a marketing campaign or advertising.
4. Brand Identity
Apart from enhancing your brand recognition, donation endears your brand to the community. Businesses that engage in philanthropic missions reinforce brand awareness as well as reputation in the communities where they have their operations. Thus, donating enhances the view that prospects have towards your business. This defines your business identity and it can differentiate it from competitors.
5. Building Community Loyalty
Consumers are more willing to spend money on products or services of businesses that they trust. A business earns trust of the prospects by giving back to a community that lives where it operates. By engaging in activities that entail giving donations, a business, its services and products become popular in the community.
Additionally, a business builds emotional connections by donating. This is very important in building loyalty in the community, which is important in enhancing the performance of a business.
6. Employee Benefits
Benefits to employees have escalated over the last few years. The experience and skill sets that employees have make them choosy about workplaces. A study conducted by Deloitte in 2007 showed that businesses that engage in charity work are likely to attract the best candidates for job opportunities. This is because employees’ morale is boosted by involvement of the business in community support activities.
Things to be Considered Before You Donate
During the donation events, employees get not only an opportunity to interact with the community outside the office, but also to feel that they are giving back to their community, which supports the business.
Generally, a business can benefit a lot from donations. However, to enjoy these benefits, you need to be careful when donating.
You need to ensure that:
- Your business donations go to qualified organizations
- You keep a record of donations and recipient organizations
- You itemize business tax deductions
It is vital to note that several organizations out there can be deceitful. Therefore, conduct some research to identify genuine charities that will not affect the reputation of your business negatively. You can meet with the employees to find out more about their views about donating.
Nevertheless, donating to a legitimate organization gives you an opportunity to stand alongside the community in handling issues like poverty and violations of human rights, among others. This can make a great difference in the community where your business operates, and improved living conditions will ultimately have a positive impact on your business environment.