How Giving To Charity Will Benefit Your Business ?
Date : Mar 10, 2021
Author : Isaac Addo
Categories : Business Tips
Supporting charities and giving back not only helps people in need but can also help your business a great deal. Different companies acquire different methods of doing social good. If your business doesn’t have enough time and budget to implement a giving back campaign, you can donate money to non-profit organizations UK, or (Non-governmental organizations) NGO UK especially the ones supporting a cause that matters to you, your community, and your employees. There are numerous charity benefits that your business can take leverage of. Here are some of the most compelling facts that will allow you to understand why supporting charities is great for your business.
Facts About Charity Donations
According to a recent study, about 70 percent of millennials report that they can spend more on the products and services of those companies that donate to charity. Moreover, the spending power of millennials is well over 2.45 trillion US dollars and if your business gives back, it can drive more sales.
We recommend you implement a donation program with a dedicated marketing team into your business model. It will allow you to attract more customers, increase sales and build up a community. You can even get tax relief on charitable donations as well. The Cone Cause Evolution Study shows the following facts.
- About 80 percent of the US citizens are ready to switch to another brand that offers the same price and quality but also supports a charity.
- 83 percent of US citizens say that they want to use services and products from those companies that donate to charity.
- 85 percent of the customers create a positive image of the companies that support a cause without even using their products or services.
How Your Business Can Take Leverage of Charity Benefits?
According to Corporate Eye, more than 94 percent of the customers think that companies should be involved in more things instead of only focusing on making money. Here are some of the most compelling and significant ways your business can get charity benefits by giving back money to support causes.
1. Giving Back Increases the Morale of Your Employees
Giving donations to charity and NGO UK, allow your business to take an interest actively in your community. As your employees are a part of the same community, it can impressively boost their morale. The workplace culture of your business improves with a positive general attitude and enhanced employee involvement.
According to a Deloitte study conducted in 2016 about volunteering, if a business takes part in a workplace volunteer activity, its employees rate the workplace culture as positive that improves productivity. It means that employees respect those businesses which respect and strive to improve their community. Not only does it improve the emotional attachment of employees with the business and also the owner but it also makes them feel good.
2. Donations Improve Marketing
If you’re a business owner you would already know that a huge chunk of your budget goes to marketing every year. On the other hand, companies with philanthropic business owners are the most successful. And also the most popular ones such as Microsoft, and Apple. Charitable sponsorship not only makes your community a better place to live. But it’s also a great way to gain marketing experience. If you sponsor an event supporting a cause, it will put your business name out there. You only need to make sure that the event you are sponsoring also reflects the goals of your company. For example, if a business provides equipment for sports, it’s better to sponsor a local tournament or a local sports team. It will show your community that you really care about your community as well as your business.
3. Supporting Charity Increases Sales
The recent Journal of Consumer Research suggests that if your business is socially conscious then your community will believe that you offer great quality products as well. In order to increase sales and reduce cart abandonment, business giants such as eBay and Amazon use checkout donations. When it comes to giving back, the customers spend 26 percent more and thus the resellers get 29 percent more sales.
4. Giving Back Improves Customer Loyalty
If your business supports local or even global charities, your customer loyalty also increases at the same time. But you have to keep in mind that the charity efforts that your business makes must be coherent with your targeted audience. It allows your business to gain the respect, attention, and trust of your customers. Especially when you support a charity or a cause that your customers care about.
The Cone Communication and Echo Research study states that about 47 percent of the customers across the globe report that they will be more loyal to the business which supports an environmental or social cause (that matters to the customers). Moreover, the study also shows that 53 percent of the customers say that they will recommend the services and products by such companies as well.
5. Donations Create a Better Image of your Business in Your Community
Supporting charity improves the image of your business in your community as it spreads awareness regarding your services and products.
Donating to a cause is one of the best ways to create a strong emotional connection with consumers. The majority of the customers choose the company supporting charity over the others that don’t. It means that donations allow your business to stand out from the crowd and improves brand value and image.
As we have mentioned already, giving back to your community also improves the morale of your employees. It also improves their productivity. Different studies and researches show that employees feel more motivated. And they work with improved productivity, commitment and determination if their company is perceived positively in their community.
6. You Get Tax Relief on Charitable Donations
It’s one of the most important charity benefits. When you donate to charitable or non-profit organizations UK, the amount you give is actually tax-deductible.
It means that the donations can reduce your taxable income by decreasing your tax bill. In order to achieve it, you need to follow the following steps.
- You will need to donate property or cash.
- The donation will only be tax-deductible if you give a donation only to a qualified organization.
- In order to claim charity, you will need to itemize tax deductions.
- You will also need to maintain a detailed document or bank record containing the name of the organization, the amount, the date, etcetera.
Not only the donation amount is tax-deductible. But all the expenses such as the travelling amount, parking costs, event fees, utility of the event, etcetera, that you spend will be deducted.
7. Supporting Charities Enhances Your Brand Reputation
Positive brand reputation is one of the most important things that improve your sales and brings more profit. Donating to charities is a great way to get the name of your business out in your community and beyond. Associating your business with philanthropic views will bring positive brand reputation and awareness because:
- It allows you to redefine the identity of your company and stand out from the competition
- It’s a general trend that people perceive those companies as more trustworthy and reliable. Supporting some cause and they are more willing to spend money on the services and products that such companies offer.
- Donating to charity is one of the most trusted activities. Allowing your business to make a difference in how it’s viewed in the community.
The image of your business is improved in the eyes of the community, business partners, and customers. It also shows your concern, involvement, and commitment and makes people think that you care about your community.
8. Donations Can Work as Your Future Investments
Donating to charities allows you to make your job more effective, more efficient, and also easier. If you do it correctly, your donations can serve you as investments in the broader mission statement of your business. If your business offers sports products and your sponsor a local sports team or sports tournaments. Then, it will allow you to make more loyal customers down the road. It makes your own job easier to move forward and to achieve both short-term and long-term goals.
9. Supporting Causes is an Internal Morale Booster
Donations also make you feel good as helping others always brings a feel-good factor. You will enjoy giving donations and supporting the cause because honestly speaking, it’s the right thing to do. According to Front Stream, supporting causes not only improves the morale of your employees but also encourages the overall teamwork that goes beyond your company’s workplace. It represents a strong bond between your employees and the name of your organization that creates a deeper sense of pride.
Donating to charities is a great way to give back what your community deserves. It also comes with a lot of benefits that we have discussed above. You can find the best and most favoured NGOs and non-profit organizations by searching “local charities near me” on the internet. We hope that this guide will allow you to understand how to support your community and your business at the same time.