It’s that time of the year where the talk of giving to charities are buzzing around the office. As a part of our Christmas tradition, LMHR donates to a chosen charity as a way of saying we care, and it always feels good to do! As a business owner, you can choose who you want to be charitable to. Business owners can share their success by giving charitable donations, volunteering hours and outreach efforts to great causes. Not-for-profit organisations and charities are constantly looking for funding and giving to them could provide huge benefits for your business beyond altruistic motivations. Here are some ways how your business could benefit from giving.
Perhaps the biggest benefit of having your business support a charity is the feeling you and your employees get from giving to others in need. As a business owner you have the muscle to make a significant contribution to the community you operate within.
Why not meet with your employees and find out about their interest in supporting a charity? You may become one of the many charitable businesses our community relies on. The benefits will be individual, collective, and multi-faceted.
Having a charitable offering is a great way to attract good candidates to your business. If your people are your best asset, making charitable contributions is a worthwhile investment and can be a great way to boost morale and career fulfilment. Giving your employees time to participate in volunteer events can foster positive interaction outside of the office by providing a sense of satisfaction and collaboration over a common goal.
The most immediate benefits to your business from supporting a charity is being able to get a charitable donation tax deduction. Donations that are generally tax-deductible include sponsorships of charities or events, donations of inventory or services, and cash donations. Businesses can claim tax deductions for charitable donations based on a percentage of their gross income. Individuals might be able to claim charitable contributions and some volunteering expenses as charitable contribution deductions on their income tax.
Be sure to consult your accountant or tax advisor to help you calculate your deductions and navigate the rules closely and make sure you are working with an approved charity.
Giving back to your community will help you build stronger relationships with your existing customers and potentially gain new ones. Consumers are attracted to businesses that give to a charity they resonate with – this may impact brand loyalty and convince potential clients to leave a competitor in favour of yours. Giving to targeted causes is a great way to rally the support of your client base.
Being able to demonstrate a charitable culture may enhance customer motivation to use their service because they perceive the charitable alignment as a bonus to the product or service they are purchasing. By supporting a charity, your business is spreading the word about your values and intentions, and potentially enhancing your customer base. Lending your brand to a specific cause is a great way to convey your company culture and values to your community and potential clients. Sponsoring a charitable program and volunteering time could also be a terrific way to promote your business in partnership with the organisation or event you are supporting.
Some businesses make charitable giving part of their overall business model. For example, businesses may sell products or provide services where a certain percentage of the sale goes to the charities that they support. When customers see the charitable impact of using a business that supports the community, they may be more likely to buy from that business instead of a competitor that doesn’t have that same human connection.
To raise awareness towards causes we are passionate about, LMHR has chosen three charities with whom we are sharing the spirit of giving this year. In lieu of gifts we will be donating to Food Bank, BeyondBlue and Zoe International. Thank you for all the amazing work you’re doing to serve the local and global communities. We appreciate you!
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