Donations from individuals are a major form of support for many charitable organizations. However, corporate giving plays a big role as well, and giving a little can reap big rewards. Here are five benefits of corporate giving.
1. Corporate Giving Has Tax Benefits
The first, and probably most obvious, benefit of corporate donations is that they are tax deductible. An LLC based in the United States can donate up to 50 percent of its gross income. Such donations are fully tax deductible.
A company wishing to claim tax relief for charitable donations will need to record the transaction in its profit and loss accounts. In addition, the charity must be registered as a US non-profit to qualify for tax exemption.
2. Corporate Giving Attracts Top Talent
To attract strong candidates, organizations need to outshine their rivals. A competitive salary and 401K plan can go a long way. However, top-tier workers are looking for a little more these days. According to data published by Cone Communications, 78 percent of millennials agree that corporate social responsibility directly influences their decision to work at a company.
Giving makes us feel good. Developing a positive reputation for your company as a force for good within the local community helps engage employees. According to a report by Business Insider, 63 percent of millennials indicate that they expect their employer to contribute to some sort of local cause. There is no better way to show that a company cares about its community.
The exposure created by corporate giving makes your company more attractive within the local community, particularly to prospective employees. Corporate social responsibility is not just the purview of multinational organizations. Any company can do it, even firms with a limited budget.
3. Corporate Giving Generates Positive PR
One of the biggest benefits of corporate giving is positive publicity. The relationship between the business and the charity it supports is often mutually beneficial. Corporate philanthropy is increasingly popular as a method of improving a company’s reputation. Customers are much more likely to want to do business with a business that supports local causes.
Reputation is everything in business. It can make or break a company. Corporate philanthropy is incredibly important. An organization that devotes time, money, and effort to charitable giving is showing the world that the business is strong and healthy. This is important in attracting both customers and talent. Social media campaigns are an increasingly important component of marketing strategies. Charitable giving is an effective platform for making this happen.
4. Corporate Giving Helps Companies Retain, Incentivize, and Inspire Staff
According to Crain’s Chicago Business, 70 percent of young adults consider themselves social activists. Flexible remote work agreements and generous vacation allowances are one way to appeal to employees. However, it is the culture of the organization itself that, in many cases, makes or breaks relationships with employees.
When an organization loses a top-performing employee, the whole business may be impacted. Staff replacement causes service disruption, as well as costing time and money. In the United States, the average employee turnover rate is around 16.7 percent. Recruiting and training replacement staff costs businesses vast amounts of resources.
Philanthropy can actually save businesses money. A survey published by America’s Charities revealed that employees who grew up in a digital culture want workplace philanthropy programs to mirror their own ideals.
Corporate giving is not just about raising your profile in the community or attracting new talent. It is also about engaging with your current employees. Corporate giving improves staff morale. Philanthropy programs provide people with a sense of purpose and help them feel more connected with their communities. Core values of social responsibility should be cemented into the foundation of every organization.
Participating in charitable endeavors also broadens employees’ professional skills. Data published by Deloitte revealed that 85 percent of employees found skill-based volunteering helped them develop their communication skills.
5. Corporate Giving Improves Communities
Charitable giving confers numerous benefits. Perhaps the most important is that by giving back, your organization is improving lives within your community. From providing young children with safe environments in which to learn and play, to financing hospital wings, corporate giving can make all the difference. It has a tangible impact on people’s lives.
The Bottom Line
There are many ways a company can support social change, improving lives and communities. For employees, seeing the organization they work for support good causes instills positivity and pride, increasing loyalty and staff retention. By supporting worthy causes, organizations attract new business as well as top-tier personnel, developing a positive reputation that will precede them into the next market.
The irrefutable truth is that corporate giving is a shrewd business move. Working closely with charities improves corporate image, local communities, and staff morale—as well as your company’s bottom line.