We know times have been tough for many businesses these past few years, large and small. Giving back to charity while trying to grow your business might not seem the most economical answer for bottom- liners.
But, as so many business owners will testify, it can be the making and foundation of your business.
Of course, there are the obvious tax benefits, but giving back, especially to deserving, 4- star charities in your local community, reaps benefits above and beyond anything you can measure on a spreadsheet.
The U.S. Annual Report on Philanthropy for
total charitable giving in 2021 grew by 4.0%. Individuals, bequests, foundations and corporations gave an estimated $484.85 billion to U.S. charities in 2021.
We are becoming more active in supporting those in need, both at home and abroad. But popping your spare change in a collection bucket at the local grocery only goes so far. When it comes to providing vital services to communities around the world, charities and non-profits also rely on support from both large and small businesses!
The benefits to you and your business
*Build your relationship with the local community.
There are many ways that you and your business can get involved, from volunteering for community projects to mentoring people in the area who are looking to start a business. And thanks to new platforms such as Neighbourly, it’s now easier than ever for your business to contribute to the local community.
*Pay less corporation tax
Limited companies that donate to charity are eligible for Corporation Tax relief on the total value of donations. If your business donates:
- Money
- Equipment
- Land
- Property
- Shares
- Employees
- Sponsorship payments
then you can claim tax relief on the cost of these donations by deducting them as a business expense from your total business profits before paying tax. The process for claiming this tax relief will be different depending on what you donate.
How your business can give back
- Volunteering your time for community projects
- Provide mentoring to local aspiring business owners
- Use your skills or expertise to provide free local workshops
- Host local charity events at your business premises for free
- Donate wasted or unsold goods to charity
- Work with local schools to offer work experience and internships
- Introduce an employee donation program, where staff can donate directly from their salary
Where to start
Regardless of whether your business is a global online retailer or a local business, if your strategy for giving back involves donating to communities around the world, a good starting point is to set up a partnership with one or two charitable organizations.
Most charities will have a section on their website for corporate partnerships, so think about what charities align well with your brand or products. There are several ways of doing this.
- If, for example, your products are sourced in a specific country, you could look for charities working with disadvantaged communities in that country
- If your business sells to a specific demographic, you could look at charities working within that community
- Think of activities that are synonymous with your target audience – by supporting causes that are important to your customers, you’ll develop their affinity with your brand
- If your brand has a tagline or message that you use consistently, is there a clever way you could align that with a charity? Here at Air Masters of Tampa Bay, our tagline and motto is “ Love Is In The Air.” We have helped a wonderful charity that supports families with children born with heart defects. We also have partnered with Homeless Empowerment Program, Check them out at Hepempowers.com They help house homeless families, military vets and anyone who needs a hand up. They are responsible for counseling and training thousands of people, getting them back on their feet and back into productive jobs and healthy lives. We are able to donate our time, labor, service, maintenance, equipment and new Trane A/C units to help keep their large campus cool and comfortable! Air Masters of Tampa Bay Founder/Owner is proud of his team and his company for their dedication to their local community. He says, “We love giving back, it’s what we do, and paying it forward, that’s really what it’s all about. Our company reaps the benefits of giving every day.”
Ultimately, regardless of what products you sell or which customers you serve, there are always ways that your business can give back. And rather than a drain on resources or profit, giving back should be viewed as an opportunity to engage on a different level with your existing customers, grow your audience and build a positive reputation around your brand.
People love to do business with companies who give back.
Ultimately, the bottom line is, you will be helping those in desperate need in your local community or around the world!
