The end year marks a period when a lot of giving happens to families, friends, and charity. While giving during such times brings a sense of fulfillment, it can also be a good time for small business owners. Regular charitable giving significantly boosts a small business connection with the community. When the focus of the small business goes beyond making money, it gives the business a sense of purpose, and the employee’s morale rises sky-high. Here is a roundup of why supporting local charities should be a small business culture.
There is no greater joy than helping others. Making a difference in other people’s lives brings with it an indescribable psychological benefit to the business owner and the employees. When a small business makes local charity contributions, it witnesses firsthand the impact its money is making in the local community. In addition, engaging the employees in giving back to the community promotes a positive company culture, which elevates the employee’s morale at the workplace.
Provides marketing opportunities
When a small business donates a portion of its services or products to charity, the chances are that the charity will market the products on the business’s behalf. Charity can offer free advertising by extending the reach of the small business marketing efforts by pushing the products to their members, which can rake in millions in profits. This is an economical way for small businesses to get their name out there.
Increased brand awareness
When a small business partners with a charitable organization, they both benefit from increased brand awareness. This, however, only pays dividends when both parties constantly make efforts to cement this relationship. For instance, small businesses can include charitable donations on their website or marketing materials, while the charity can acknowledge the small business’ support online. This brings onboard new customers, particularly those who already know and support the charity organization.
While it’s unethical to support charity with the sole purpose of financial gain, it comes with fiscal rewards if a small business supports a charity it believes in. Sponsoring charitable events, such as holding a fundraiser, can earn the small business tax deductions. This, however, only applies if the small business plays by the books and complies with every tax requirement.