“We try to focus on smaller local groups versus nationwide organizations since these are the ones that the bigger companies seem to miss,” Schweig said. For a small business that’s tied to the community, it often makes sense to pick a local group. To make the most out of your donations, first of all, pick the right organization to donate to. Donating to organizations that fit your business’s values According to the Center for Social Impact Communication, millennials place great importance on corporate social responsibility. Further, your brand image is improved because charitable giving demonstrates corporate responsibility. According to Squareup, giving back boosts a company’s image and leads to a more loyal customer base. Company culture is important to future and current staff, and your workers will feel good about working for a company that gives back.Ĭustomers are also likely to feel good about supporting a company that donates to charity. Improved team morale is another area in which businesses benefit by donating to charitable organizations. Ask the charity if there are easy ways they could publicize your support, such as in their donor newsletters.” Additional benefits And remember, this is a two-way relationship. Talk to the nonprofit about ways you could help year-round, such as volunteering, sponsoring events and inviting the charity’s CEO to speak to your local business associations. “Don’t limit giving to the end of the year. “Develop an ongoing relationship with the charities you support,” said Kris Putnam-Walkerly, president of Putnam Consulting Group, a philanthropic advisory firm. Donating to a local organization can be the start of a long-lasting relationship. We do think it helps us from a marketing standpoint, as we want people to know that we are local, our team is local, and we support making our local community a better place.” Building your networkĬharitable giving is also a way to build alliances with other organizations and network with individuals who are potential partners.

“As a single-store retailer, it is important for us to give back to the community,” said Brad Schweig, vice president of operations for Sunnyland Furniture. “There isn’t really any tax benefit for us, so it comes back to being a part of our community. As a small business, while you don’t get as large a tax deduction as big corporations and enterprises do, don’t overlook the other benefits of philanthropy. “People want to … shop at a small business because a small business cares about them as individuals and the causes they care about.”Ĭharitable giving demonstrates that you give back to the community and are in business for more than profit. “What distinguishes small business from large-scale corporations is the connection with the community,” said Kristen Fusaro-Pizzo, owner of Bath, Body, Candle Moments. Charitable giving is good PR, and it makes sense for business, especially for small businesses that depend on their communities to keep them afloat. There are a few reasons why your business should consider donating. The following are just a few select benefits a business can garner by routinely donating to charity. For instance, kid clothing retailers may find customers respond positively knowing that part of their payment goes to a pediatric charity. Before selecting your preferred charity, research causes that are likely important to your customer base.

Benefits of donating to a charityīusinesses experience a multitude of benefits when they donate to charities. If your business wants to give to charity at any time of the year, it’s crucial to follow a few guidelines. It’s a simple act of kindness that benefits the community and helps brands build goodwill.īut for small businesses, donating to charity can also bring a handful of difficulties and potential headaches. That gift can come in many forms, from volunteering at a soup kitchen to donating a few thousand dollars to a local charity. Many businesses celebrate the holiday season or ring in the new year with a gift to charity.

When it comes to the paperwork and tax requirements for charitable contributions, it’s often easiest to speak with a tax advisor.Īs summer closes and the holiday season draws nearer, many businesses look for ways to give back to their communities, such as through charitable contributions.

There’s more to charitable giving than receiving tax benefits.

Donate to charity because you feel a connection to an organization, not because you want a tax deduction.

Charitable contributions from businesses to nonprofits can qualify for tax deductions.

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