How Business Support of Charities Is Mutually Beneficial
Charitable giving is something that many businesses do. Despite the idea that it is only for the financial perks, there are actually many reasons why businesses support charities. In addition, this support can benefit the charities more than just by getting them more donations. The partnering of a business and charity can be mutually beneficial all while helping to support some very worthy causes. Here’s a look at some of the ways this relationship provides benefits to both parties.
Through charitable giving, a business is able to develop relationships with the other businesses that are supporting the same cause or causes. This can enable a company to broaden its network and make connections that can be beneficial in many ways.
For the charities, they are able to benefit from the network of the businesses that donate to them. This allows them to make new connections, which then opens doors to the possibility for obtained new donors.
A business that gives to charity is looked upon in a good way by the public. It can be great public relations to choose a charitable cause and become active in donating and working with that charity. People who support that cause may then be more inclined to do business with the company. In addition, it shows that the company is caring, which is something customers always want to see.
For the charity, creating a connection with a high-profile business can help it to grow tremendously. One of the biggest challenges for a charity is being able to get attention for their cause and to entice people to donate. If people see a company they love donating to a cause, they are more likely to do so too. In addition, there are many times when a business will partner with a charity and collect donations for them or provide donations from its proceeds.
Provide Financial Perks
As mentioned, the obvious benefit for both businesses and nonprofits in creating a relationship is the financial perks. Businesses can write off charitable donations and anything else they may do for a charity on its taxes. Many companies can greatly lower tax liabilities just by doing work with a charity and donating large sums of money. It’s common for big companies to set aside a portion of all profits for charitable giving just to get these tax breaks.
For the charities, it is obviously a good thing to get the money from donations. Donations are the lifeblood of a nonprofit. Without them, the organization is doomed. Not only that but they also won’t be able to help out the cause they are working so tirelessly for. Businesses usually give much larger donations than the average person, so they are incredibly beneficial.
Boost Employee Morale
Finally, getting involved in charitable causes can be a huge boost to employee morale. Giving makes people feel good. It also helps them to respect their employer more and feel like what they are doing is making a difference. By working and doing their jobs effectively employees know the company will have even more money to give, so it serves as a great productivity tool, too.
Nonprofits can also benefit with a boost to employee morale. When donations are rolling in, employees are able to start getting things done. They can buy supplies or provide money to research, whatever it is they need to do to help their cause. It starts the ball rolling on making a real change, which is what these employees are really focused on.
A Note for Nonprofits
While getting donations from businesses are great, it is important to make a connection with businesses that support the cause and relate to the values of the organization. Nonprofits should be careful about choosing partners. Once that connection is made, the nonprofit is linked to that company. Any bad press the company may receive can reflect badly on the charity. This, in turn, can cause donations to drop as people back away from the charity due to its association with a business that is experiencing a scandal or issue.
A Note for Businesses
When it comes to businesses, it is essential that a business really creates a solid connection with a charity. There has to be a personal connection there. If there isn’t, it looks only like a company is in it for the tax breaks and that it doesn’t really care about the cause. Superficial giving is almost as bad as not giving at all in the eyes of the public. Personal connections can be made by going beyond just monetary donations. A business should consider really getting involved. Companies that can find a way to become really committed to charitable work, like the Don Burns Foundation, will find that it can be an amazing experience.
Charitable giving is always a good thing. However, when it comes to partnerships or relationships between charities and businesses, the benefits are even greater. Both entities get great perks just through supporting a cause that really deserves attention.
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