Does Your Business Give to Charity?
In a recent survey, 67% of small and medium sized enterprises stated they believe that charitable giving has had a positive impact on their businesses. However, not all entrepreneurs were aware of the potential benefits of adopting a policy of “Giving Back”.
New research suggest that those who give an equivalent of at least 0.5% of their profits to charity are more likely to see an increase in profitability, an enhancement of their reputation and standing in the eyes of their customers, as well as attracting more valuable and loyal staff.
A similar survey of 2,000 UK adults showed that 54% believed that all profitable businesses should be required to donate to charity by law. Others said that they would be more inclined to patronise a business known for its charitable endeavours over its competitors, and would also recommend it to family and friends. The public, it seems, expects those who are successful in business to be supporting the work of those who are in it for the benefit of others.
If you are thinking of donating, there are other ways, aside from giving money. Donating stock or materials, employee services, or land and buildings can all make a difference, and you can also support in the form of sponsorship.
Companies and individuals can get tax relief on charitable donations which might make supporting a worthy cause even more attractive.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.