If you want people to respect your company, doing good is just as important as doing well. Business people turned philanthropists such as Bill Gates and Michael Bloomberg earned the admiration of many for transforming their dollars into charity. You don’t need to stop doing business before you start contributing to charitable causes, and you don’t need millions of dollars to become involved in philanthropy. More businesses, large and small, are discovering advantages of supporting charitable causes because doing so can actually improve their companies. In addition to tax breaks that your company will receive for charitable activities, you will also gain numerous social benefits when you give back.
How Businesses Can Improve Communities
Large companies may have widespread marketing campaigns in which they promise to give a certain percentage of proceeds to a cause. A virtual sticker on a website that proudly displays that the business is a sponsor of the Special Olympics or another valuable cause can positively influence the consumer.
Small businesses gain the advantage of being involved in the community and can raise their statures as socially concerned businesses through involvement with local causes. A small business can sponsor an event or have their employee’s volunteer hours working toward a socially conscious goal. Some businesses refurbish nearby parks to provide a service for the community and to encourage people to spend time in an area close to where they do business. Restaurants may sponsor efforts to feed the homeless, and apparel stores could have a winter coat campaign for needy children. Providing services that are relevant to your industry can raise awareness for a cause and your company.
The Advantage of Charitable Activity
Some entrepreneurs, such as Bill Gates and philanthropists, like Donald Burns, establish foundations. However, not every company or entrepreneur needs to have a large amount of money before they can engage in charitable activities. One of the main advantages of charitable donations and sponsorship events is that they are tax-deductible, at least to some extent.
If you are annoyed as a business owner about the amount of money you have to pay in taxes, putting that money to good use through activities that benefit others may ease your concern about the tax rate. You may be able to deduct the expenses from your income taxes as well as your company’s taxes but speak to an accountant to avoid any tax problems.
Volunteering Benefits Employees
One consideration people make when considering an employment opportunity is the benefits package they are offered. When faced with multiple offers, the choice between working in one company and another may depend, for instance, on whether they are offered dental coverage or a gym membership as part of their employee package. According to one survey, many people indicate that they would be more likely to work for a company that had volunteer opportunities. This may seem counterintuitive since potential employees tend to look at what they can gain from working for the company. This demonstrates how people feel satisfaction from giving their time to activities that benefit others.
Many people are familiar with teambuilding exercises from work. Managers often suggest these outings and activities as a way of getting their teams to cooperate and get to know each other through doing something active in a non-corporate setting. Some companies have employees go bowling while others involve them in a sushi making workshop. Volunteering for nonprofit or cause may be a good way of implementing team building. Volunteering and providing for others can give people a strong sense of confidence and self-worth. If employees are working together as a team to do something good for others, it can fill them with a sense of purpose.
Raising Your Profile
Marketing can comprise a large portion of your budget. Using social media may seem less expensive than buying a traditional ad in a media outlet, but it can be hard to compete with other companies for attention. A nonprofit that is organizing an event may have similar challenges with getting the word out as your company does. This is where your company and a nonprofit join forces and do cross-marketing with each other’s audiences
Working with a non-profit can expand your audience and raise your brand’s profile. If you sponsor a charitable event such as a fun run, your brand name can reach people who might not have been aware of it before. It can also foster respect for your company since it is involved in a worthy cause. In addition, people who care about certain causes tend to remember the companies that have supported it. People who have a strong sense of social awareness often like to reward companies that are involved in charities by promoting their brand on social media or through word-of-mouth.
By Doing Good, You Will Do Better
Many consumers want to feel that their purchasing products from companies that have a strong sense of morality and compassion for others. Younger people tend to be scrupulously careful about how their food is raised, for instance, and will distance themselves from the company they feel is not sufficiently humane. On the other hand, people like doing business with companies that often do socially minded promotions and are involved in charitable organizations. Your company, your employees, and the people can all benefit from involvement in charitable causes.