Giving to charitable organizations is often twinned with massive corporations that can afford to give back to the less fortunate. At least, that’s how entrepreneurs and bosses of small and medium startups think when the idea of corporate philanthropy comes up in conversation. Sure, it’s not easy to ring-fence money when you barely have enough to go around. But, the reality is that giving to good causes is not only healthy for the soul – it will boost your bottom line. So, if you’re considering upping your charitable donations and haven’t seen the right sign, you should carry on reading as you’ll find four below.
Customer Support
Customer support is about more than picking up the phone and tracking missing parcels. In 2020, it’s about showing solidarity with the people who trust you to be moral when making commercial decisions. You can easily donate to homeless organizations when you understand that 70% of the people driving the social responsibility movement will spend more money with brands that support causes such as homelessness and hunger. Although you stand to make money from your stance, it shouldn’t be a corporate decision. Consumers are entitled and can see through your bluster, which is why it’s essential to stand firm with your base.
Employee Morale
If there is one group that is as important, if not more so than your customer base, it’s your employees. Without an engaged and productive team working hard behind the scenes, nothing would reach the shelves, whether online or in-store. Like shoppers, workers care about social issues as they are much more concerned about people and the planet as a whole. Therefore, giving money to charities and good causes is an excellent way to boost their morale by highlighting that they work for a company they can be proud of.
Speculate To Accumulate
The key to a successful business is to spend money wisely so that you receive a high return on your investment. By doubling your initial deposit, you’ll have a bigger budget and more resources on which to expand the company. However, lots of investments are risky and result in a loss. Corporate philanthropy is different for one reason – tax deductions. Although you won’t recoup what you spend, you can add the money to your company’s tax return, reducing the amount you pay in tax for the year. As long as the amount you save in tax outweighs your donation, it’s a positive transaction.
Marketing
Charitable giving is a great way to market your brand. By choosing a topic or event that is in line with the business, you can subtly give back to your local community. As a result, people will notice that you have done a good thing, and they’ll be happy, yet they won’t jump to conclusions. For example, they shouldn’t assume that you’re in it for the money, not when they receive a fantastic experience from your sponsorship. Also, you can use goodwill as a marketing strategy in the future to remind people about how your business is a giver and not a taker.
What do you think? Is giving good for business?