Giving back is just as good for your company’s bottom line as it is for your community. Implementing a volunteer program can boost worker morale, which will improve employee retention. Your customers will also appreciate that you’re making a difference in your community. They may even spend more money on your business as a result.
Volunteering also gives start-up founders a chance to rub elbows with influential people in their community. Because there are so many business gains from donating to charity, it’s a win-win for everyone.
Here’s a more detailed overview of the benefits of charitable giving for corporations.
Better Customer Perception
Many consumers prefer to buy from companies that support good causes. Seventy percent of millennials say that they’ll spend more money with a brand that makes a positive social impact.
Donating to a charity may also get you positive press, which will boost your brand image. Charities often put out press releases when they receive a new donor.
The media loves stories about people and businesses that are making a difference in their community. So the press release may catch the attention of journalists and get picked up by a local newspaper. This will raise your company’s profile and might even cost less than a traditional marketing campaign.
Good for Employee Morale
One of the best business gains from donating to charity is better employee retention. Over 70% of workers say it’s important to work for a company that donates to good causes and volunteers in the local community.
Implementing a volunteer program can make your employees feel more positive about the overall culture of the company, which will increase retention and productivity.
Volunteering is also a great team-building exercise. Picking up garbage in a park or serving meals in a soup kitchen gives your employees a chance to bond and work together to make a difference.
Many nonprofits also offer skill-based volunteering opportunities that can help your employees hone their leadership capabilities and learn new things. Over 90% of HR executives say volunteering is an effective way for employees to expand their skillsets.
So volunteering will not only boost your employees’ morale but also allow them to develop professionally.
One of the most obvious business gains from donating to charity is tax deductions. Although you can’t deduct the cost of the volunteer hours your employees provide to nonprofits, you can write off any money you give to charities up to a certain limit.
In any given year, you’re not allowed to deduct more than 10% of your corporation’s pre-tax income. However, you can carry over donations in excess of that amount for up to five years, which gives you some flexibility at tax time.
Another benefit of volunteering is that it provides networking opportunities, especially for small businesses and start-ups. If you’re a new entrepreneur who’s trying to gain business contacts, getting involved in local nonprofits is a great way to meet influential people.
Many affluent families donate lots of money and time to nonprofits. Attending events like charity dinners is a great way to rub elbows with people who could potentially invest in your business.
You never know who you’ll meet by volunteering, and you’ll be donating your time to a great cause. So there’s really no downside to charitable giving.
Corporate social responsibility is not only good for your company but also for your community. Donating your time and money allows you to increase your company’s bottom line while making a difference. It doesn’t get better than that.