Philanthropy serves a critical role in society. Small business plays a big part in supporting nonprofits achieve their mission.
There are multiple benefits to philanthropy. A big one is that it simply feels good. In our modern society, it’s easy to feel self-centered sometimes. Giving away helps us feel gratitude towards what we already have. Supporting a good cause will give you a warm feeling inside.
There are also tax benefits. Assuming the nonprofit you are donating to is registered, they’ll be able to give you a receipt. It will reduce your tax liability. Sometimes you can donate stocks to a charity and avoid capital gains. You should consult with a tax expert before claiming anything.
Lastly, it will differentiate your business. Most markets are very competitive. You need something to make your business distinct. Philanthropy can help.
Philanthropy isn’t free. It’ll probably cost you both time and money, but there are numerous benefits.
In many surveys, employees have said that they want a job in which they can make an impact on society. Paying the bills is great, but doing some good as well is better. By being a small business that does philanthropy, you’ll be better able to attract and retain high-quality employees.
Your client base will be affected as well. They’ll be better educated and spend more money, and your revenue and profits will increase.
Publicity and Reputation
Philanthropy will generate great publicity for your business and improve its reputation. There will be a halo effect. Everything from attracting employees to customer service will be easier if you have an excellent reputation.
What can a business give? It’s either time, money, or a combination of the two.
Money is great in that it is liquid and allows a nonprofit to buy anything it needs. But it’s also expensive. In some cases, you might be able to offer your product. A restaurant might be able to offer excess vegetables to a soup kitchen.
You can use philanthropy to motivate employees. For example, you can offer a charity match.
Community events can be effective. Every year, you could hold a fundraiser. That way, you raise money and also generate publicity.
Having employees volunteer can be great. This is especially true if there is downtime. It costs you nothing.
Lastly, you can ask customers to chip in. Have a collection bin in a store for veterans. If you have an online business, ask customers to round up for charity.
Nonprofits achieve amazing things in society. Small business has an important role in philanthropy.