Companies large and small are learning that charitable giving is a good thing. Nonprofits and aid organizations are always in need of support, financially and through volunteering, and many businesses donate money and products while encouraging employees to participate in volunteer programs.
Another way that businesses help charities raise funds is through workplace giving, where employees can donate by having funds taken directly from their paychecks. In fact, about $5 billion is raised annually through this method. The truth is when businesses give back, everybody wins. Organizations get vital support, employees get involved in causes they feel good about, and corporate bottom lines are strengthened. Here are four ways charitable giving benefits businesses.
1. It attracts employees.
The newest workforce generation is made up of millennials, also known as Generation Y. Collectively, these young workers are most attracted to companies with strong charitable giving programs. They want to see their employers give back. This matters because millennials make up the largest portion of the modern workforce, accounting for 56 million of today’s employees. This newest generation of employees, which began working in the late 1990s and the first years of the 2000s, are more likely to choose to work for generous employers.
2. It offers free publicity and marketing opportunities.
Some of the world’s best known companies such as Apple are powerful philanthropists. Local businesses and professionals such as Neill Sullivan Oakland are helping to build and strengthen their communities so the quality of life is better for everyone. By sponsoring local charitable events, you get a lot of positive publicity—the sort that cannot be bought. Focus on getting involved with events and organizations that match your mission and goals. For example, if you sell pet supplies, sponsor adoption days for local animal shelters.
3. It helps you get tax deductions.
Some types of donations can earn you tax deductions from the Internal Revenue Service (IRS) of as much as 50 percent of your Adjusted Gross Income. Common types of donations can be a big help when figuring corporate taxes.
- Offering free products and services
- Supporting events and charities
- Giving cash
To make sure you do not have problems later, check that the nonprofit organizations you support are approved by the IRS. You may be able to file some volunteering costs as charitable expenses, and if you itemize, you can deduct mileage and expenses for supplies.
Charitable giving is a complex financial matter, so it is best to consult an accountant to make sure you put everything in place properly. You might not see immediate financial benefits. However, the long-term payoffs can be worth it. In addition to eventual tax breaks, people can relate more to companies that get involved with the community and may look more favorably upon them, possibly becoming customers.
4. It helps employee morale.
When employees are allowed to work for and donate to causes they care about, they feel better about themselves and their employers. 71 percent of employees surveyed say it is extremely important to them that they work in a generous professional culture involved with donating time and money, according to America’s Charities Snapshot Employer Research. When companies help their local communities, employees can feel good about that. They like participating in positive, helpful causes, and they are more likely to develop bonds of loyalty with their employers and do better work.
The Skinny on Corporate Giving
From employees to local residents, people like to see companies give back. They look more kindly toward businesses involved in active charitable giving. Employees can feel good about how they spend their time, the community benefits in multiple ways, and companies get great publicity and long-term financial benefits. Giving is great for the corporate bottom line, but it is also a noble way to be of service.
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