Unknown to many, philanthropy – apart from helping the community and changing the world – is a great way to increase the reach of your business. The marking of a true entrepreneur is someone who finds what people not only want but also need and provides it. They are usually greatly rewarded for it. The same case applies to philanthropy, which is why business charity is popular in multiple industries. While most companies or organizations do charitable acts without expecting to gain from it, there are great rewards that come with the territory. Read on to learn the top ways corporate philanthropy increases reach for businesses.
82% of consumers consider the approach a company has towards social good when making purchases according to a study by Cone Communications. Participating in charitable events gives you a cause and people like standing behind causes. Matter of fact, according to the same report, 70% of millennials are more likely to purchase products from companies with a cause. By being philanthropic, your business will be able to capture harder to reach demographics like moms and millennials who account for $2.45 trillion of spending power. Additionally, when you do charitable activities that support the community and show them you care, they will be more inclined to support your business. More customers translate to increased revenue for your business.
Increased Credibility, Trust And Admiration
Philanthropic activities take you out of the office and into the community where your target consumers are. While in the process of creating a positive impact on the community, you will be able to interact with consumers. This does two things, helps you market your business and earn their trust. A good example of charity increasing trust among consumers is when New Dierks Restaurant led by Ryan Hibbert donated $10,000 to Heal a Hero Foundation which caters for veterans. This move not only helped to find solutions for but also earn the trust, gratitude, and admiration of families of veterans with PTSD and physical injuries. Goodwill earns your business credibility and trust among consumers.
Improved Worker Cohesion And Satisfaction
When deciding on what charity to support, you should consider the one which bears the greatest meaning to your workforce. When employees participate in charitable outreach programs, it boosts their engagement which means they will be more likely to work better together. Secondly, it makes them happier and there’s science to prove it. Generosity releases endorphins according to professionals. These endorphins stimulate feelings of calmness, satisfaction, and peace. They also reduce stress and ease tension. Therefore, you as a business owner can also release stress. Now happy, satisfied and stress-free employees are good for business. This is because they will be more energetic and innovative which will, in turn, lead to better productivity. Use the best neat office organization tips to lower employee stress even further, and you can boost your efficiency levels in no time.
A Wider More Resourceful Network
The importance of networking in business cannot be overemphasized. The people you know and mingle with determine the opportunities you can take advantage of and projects you can push through. This is where philanthropy comes in. Most of the members of philanthropic organizations are the whos and whos of today’s world. Joining such initiatives helps you get into contact with them. Activities such as sponsoring a little league game or blood drive also put you into contact with prominent members of the community as well as the authorities. Now, these are like-minded individuals with experience, knowledge, and connections that will help grow your business to levels you never knew it could reach. To quote the script if the TV series Mad Men, “Philanthropy is the gateway to power.”
Philanthropy creates a better place to live in for you, your employees and the community. Once you find issues that need addressing within your local community say pollution, you will be creating a better, healthier environment. You can start a nonprofit to give back to the community. You can also start donating a park creates a place families in the local some of who work for you get a place to relax and wind. Building a school ensures community members get an education. Donating to a hospital means residents, some of whom make up your workforce get access to health services.
Decreased TAX Deductible Income
One of the most immediate and pronounced benefits of philanthropy is it reduces your tax-deductible income. Donations to nonprofit organizations are usually exempted from tax by the Internal Revenue Service. So are gas and parking fees as well as any expenditures related to the donation. Basically, any philanthropic act directed to qualified charities is considered a tax-deductible expense. This, in turn, reduces your taxable income and in the process lowers your tax bill. You, however, have to actually donate not just pledge to organizations that are qualified for tax exemptions and meet a couple of record-keeping requirements to enjoy this perk.
Turns out giving is quite rewarding. True to the words if the Heritage Foundation, it helps foster happiness, health, goodwill, strong connections, and prosperity. By deciding to be philanthropic, your business will not only be making the world a better place but you will also be fueling its growth.