A new study recently found that if given the choice between two similar companies which offer services or products at the same price point, 82% of consumers would be influenced by whether the company has been philanthropic.
Another similar study shows millennials have driven the social responsibility movement to all new heights. 70% of the individuals report that they are planning on spending more on brands that support favorable causes. Millennials now represent $2.45 trillion in spending power, the notion of “giving back” can be very powerful for your businesses sales, not to mention, it’s overall purpose.
You do not need a huge budget or full marketing team to execute a strong “giving back” campaign. Corporate donation is a great way to generously help a charitable organization that matters to you, your employees, and your community. Most businesses are able to make charitable donations each year. There are lots of benefits to corporate donations, but here are four that you might want to consider.
Employee Morale
Corporate donations allow companies to take active roles in their own communities and can also lead to a huge boost in employee morale. If a company chooses to make a corporate donation, workplace culture may improve with increased employee involvement and a positive general attitude. Millennials are reportedly twice as likely to rate their corporate culture as very positive if their company participated in workplace volunteer events. Employees really respect companies that care for their community — it makes employees feel good, and increases the emotional attachment to their employer.
Increased Marketing
Philanthropic businesses tend to be some of the most powerful in the world. Charitable sponsorship is an awesome way to do good in your community, while also gaining marketing experience. Donations will put your company’s name out there. Just make sure that the charity mirrors your own company’s goals. For example, if your company makes or distributes computers and electronics, consider donating to a program such as Computers with Causes. That will show your current and future clients that you really care about your business and your community.
Tax Deduction
This is maybe one of the most direct benefits of corporate donations. You may not be able to see how your contribution benefits your community instantly, but you will quickly notice the tax savings. Of course, businesses should not donate to charity with the sole expectation of financial gain, but there are financial rewards for helping a charity in need. Businesses can generally receive tax deductions from sponsoring charities or events, but your need to make sure to follow the rules and go about the process in the right way in order to comply with all existing tax requirements.
It’s Good for Your Community
Charitable contributions have numerous benefits, but perhaps the most important one is obvious: you should give back to your community. Charitable contributions help better your community, and the public will take notice if a company is making a real effort to improve its surroundings. Your company’s charitable donations can help improve schools or parks, giving children safe places to learn and play. And, if you choose to donate to a nonprofit organization that conducts medical research, you could also help in the effort to cure diseases. The opportunities are both endless and extremely helpful.
One way to get employees to participate is to align the company’s donation choices with causes that have the greatest meaning to your particular workforce. For example, a tech company can choose to donate to Computers With Causes since they have technologies in common. There are a lot of reasons why companies do not donate to charities, but you can always help initiate change.
There are so many reasons why your company should make charitable donations, and any reason that motivates you is a great one. Donating to charities can help improve your business and work culture. It can also have a impact on others. Pick a cause that you believe in and make your community a better place to live. It’s always good for business.
