Many top business and financial leaders like Marc Leder understand the importance of contributing to charity and cultivating a spirit of corporate philanthropy. Not only does charitable giving make the lives of people in our communities better, it also has benefits for businesses themselves. If your business isn’t yet a regular supporter of charity – especially local charities – here are some potential benefits that might encourage you to change that.
Employee Morale
According to Marc Leder, it is well-known that giving time through volunteerism or direct support through donations makes people happy. It is also well-documented that happy workers are productive workers. In this way, encouraging some form of charitable engagement in the workplace is likely to have a positive spill-over effect for the productivity of your workplace. It is also important to recognize that participation in collective efforts – whether a food drive, half-marathon, or volunteer activities – can be a very powerful way to build a sense of community, team-work, and shared vision. A workplace where people feel like they are united in a common purpose, and more importantly, a common purpose that makes them feel positive about themselves and the business itself, is likely to be a workplace that people will pull hard for.
Positive Community Image
For many consumers, the values that are represented by a particular business or brand become an important consideration as they decide where to spend their dollar. In an age of social media, we have seen the power of the boycott to call businesses to attention about social issues. This works both ways – businesses that are seen to be making meaningful contributions to the well-being of their communities will be more attractive to consumers who share the same commitments. Studies show that consumers will be significantly more likely to purchase a product or service when they know that their patronage is also supporting a charitable cause.
Increased Visibility
Especially for events that are prominent in the community, a sponsorship or “platinum” level donation can result in a considerable amount of visibility – on banners, in paper or print ads, or on the backs of runners, your company’s logo will be on display in a positive way.
Tax Deductions
An immediate and quantifiable benefit of charitable giving can be seen on your tax form. Deductions on corporate taxes are available for a full-range of contributions, including sponsorships of charities or events, cash or inventory donations.
It may seem self-serving to be thinking about the benefits that your business can receive as a result of charitable activities, but it is important to realize that there is no reason that charitable efforts cannot be seen as creating a win-win situation, and that an awareness of self-interest in no way takes away from the meaningful impact that your business can make through charitable work. Regardless of the benefits that your business may receive, the fact is that if your business contributes to local communities and charitable efforts, everyone wins.
Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.
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