Why Should Businesses Donate Money?

Charity donations are very important in helping poor and under-privileged sections of our society. Most people donate money because the act makes them happy and satisfied. We have already discussed some of the important reasons for donating money on individual basis, in an earlier article. At the same time, the act of donating money can be extremely beneficial for businesses, both small and big. The fundamental reason is obviously the same as in the case of individual donations, i.e. to help the under-privileged. However, business can gain a lot of other benefits as well. Some of the important benefits for businesses are discussed in this article.

1: Reduction in overall tax charge:

One of the most important reasons why most businesses donate is the tax relief they get. Donations to authentic charity organizations are usually tax deductible in most geographical jurisdictions. This can have a very positive effect on the overall tax charge for the business.
It is strongly advised that you check with the relevant authorities before making any significant charity contribution, if the sole purpose of your donations is to take these tax benefits.

2: Positive publicity:

Today, businesses are all about good publicity. People like to deal with companies that are more environment friendly, pay fair wages and make positive contributions in the society in which they operate. One of the best ways a business can contribute in the society is by making significant charity donations. Therefore, these donations can be greatly helpful in improving the public image of businesses. This, in return, can also improve the overall profitability of the business.

If your business donates to charities and social causes, make sure to take maximum advantages. Take photos and print them in magazines and post them on Facebook. Moreover, working with local non-profit organizations can also be very important and useful in improving your overall public image.

3: Better customer support:

It has been noted that the customer loyalty rate is significantly better in companies that have a positive image about making charity donations. Your customers will remain loyal and even support you in difficult times, for example when local government is against you. The value of your brand can be greatly increased if you are successful in showing yourself as a responsible business by donating money to local social causes and charities.

4: You are no longer “money-hungry”:

Businesses and corporations are often criticized as people believe they are hungry for money. This is obviously true that the basic purpose of any business is to make money but it does not have to be a bad thing. One of the best ways you can greatly decrease this criticism is by donating money to authentic causes. You can show the whole community that you are not really hungry for money. You can prove that you are in the business to make money but your presence is also greatly helpful for the local community. This act can go a long way in securing good reputation in the market.

5: Attract better employees:

It is not only with customers that they want to deal with ‘good looking’ businesses. A recent trend is that employees also want to work in organizations that look after their community along with earning money from the community. If you are donating money and helping local community, you are more likely to attract better employees for your company.

6: Networking opportunities:

When you donate money, you are usually invited in charity functions and local events. These are the events where various bureaucrats, politicians, government officials and businessmen are invited. Hence, it can prove to be a great platform for learning and improving your contacts. Business is all about networking and making good relationships with different people. Donating money can directly provide you with an opportunity to achieve your networking goals.

It can be seen that donating money can be extremely beneficial for businesses. Therefore, a business should never ignore any such chance.