The Business Benefits of Giving
Did you know that there are a lot of benefits to your business by donating to charities and not-for-profit organisations?
In this day and age people are becoming more socially and environmentally conscience making them more likely to engage with businesses that share their values.
Social responsibility is about looking beyond what you can do for your business but how you can benefit the community that you work and live in as a whole.
It’s impractical and not always feasible for you to actually get out there on the streets helping the homeless or doing your own cancer research. Instead there are a large number of not-for-profit organisations out there doing that already that you can support both financially and in-kind.
People value social responsibility and business can not only have an impact on their business but their community as a whole.
Here are a few business benefits from supporting not-for-profit’s and the community:
A number of surveys show that employee morale is higher in businesses that donate to a not-for-profit or are engaged in community support. Employees are more enthusiastic and passionate about their work knowing that they are supporting the community through their work. It gives them a purpose outside of just turning up for ‘work’ and they view the company more positively than one that didn’t get involved in not-for-profits or the community.
Finally, potential employees are more inclined to work for a company engaged in community support so it can improve your options when looking for new staff.
Customers like buying from businesses that have similar values as them. With more and more people getting involved in community programs it should be no surprise that they would be more likely to buy from a company that also supports the community.
Donating to not-for-profit’s shows customers that you care about more than just your bottom line.
Marketing is all about connecting with people and community support can be a part of that strategic plan.
When customers are actively engaging in the charity works that you do, marketing naturally flows through word of mouth. People discover that your business is involved in charity events and your business’ popularity increases.
Any donations given to not-for-profit organisation classified as a Deductible Gift Recipient (DGR) are tax deductible. You can check if an organisation is a DGR by doing an ABN lookup at https://abr.business.gov.au/.
If the organisation isn’t a DGR you can still get a deduction for any advertising you do with them.
Manage Your Cash Flow
You don’t have to be putting your cash flow in danger to support your community. If every small and medium sized businesses in Australia donated just a small amount we would easily eclipse even the largest donations made by big business.
One option is to tie your donations to an income producing activity. For example you might donate $1 for every product you sell or when a given service is performed. This allows you to donate more as you become more successful but also means you’re not donating more than you can afford.
Giving Back Is Good For Your Business and the Community
While there are benefits for your business by donating or engaging in community support, the greatest benefit is to the community itself.
“You reap what you sow.”
Your business, your employees and your customers are all part of a wider community and when you support the community you are supporting them as well, the benefits to your business are just a bonus.
Above all else it’s worth supporting the people in your community.
If you would like to read more about Alexilum’s community support program “Under Cover” – CLICK HERE
If you want to find out more about our community support program or to talk more about how community support can benefit your business Contact Us now.