Giving back to you community helps build bonds with local communities. While small businesses may not always have the funds to give big, here's why they should find ways to give back.
Tax Deductions
One of the most immediate benefits to your business of corporate philanthropy is being able to get a charitable donation tax deduction. If you make charitable contributions or offer goods or services to a charity you may be able to claim contribution deductions on your income taxes. You can, for example, list deductions, write off expenses relating to transport to and from volunteer work, as well as any of the materials costs incurred for volunteer projects. You may even be able to get a tax deduction for the monetary value of charitable donations – whether it’s cash, stock or used machinery, vehicles or other items. Make sure that you are working with a nonprofit organization that is approved by the CRA so that you can file a receipt with your tax return.
Free Publicity
Whether you are sponsoring a charitable program and/or volunteering your small business’ time these are all excellent methods to raise awareness about a cause plus promote your business. You can advertise the charitable event by posting on your social media platforms, your website and having posters and flyers in your workplace. Make sure that a press release is included on your website about your participation in the charity event so as to attract the attention of the media. Furthermore, try to ensure that some members of the press can attend your event to generate more awareness of the cause and your small business. You can also publicize your donations of goods, services and more to your chosen charity by sending press releases and photos to the media. After the event is over you should share photos of your charitable activities, especially on social media, for maximum impact.
Attract customers
You are likely to draw in more business through corporate philanthropy, as when customers see the beneficial impact of buying from a small business that aids causes and contributes to the community, they will be more inclined to give their clientele to you instead of to a big anonymous brand that doesn’t have that same human connection. Furthermore, charities can help you market your products to new audiences. To make sure the charity you choose aligns with potential customers you should ensure you pick a cause that is likely to contain other members who might develop an affinity with your charity. Partnering with your charity to market to a niche will bring new customers to you and new adherents to your charity.
More Business
There are methods that, if you leverage them correctly, can ensure your marketing improves and profits increase, plus serve to help your chosen charity thanks to corporate philanthropy. You can establish a partnership with your charity so that both you and your charity receive a significant benefit. For example you can assign certain products with “charitable” or a “cause-related” label entailing that, when these are sold a percentage goes to the charity. Invite the charity to promote these products for a win-win situation.
