7 Key Reasons Why Companies Should Participate in Corporate Giving

7 Key Reasons Why Companies Should Participate in Corporate Giving

Whether you’re an entrepreneur creating a new startup or a corporate entity making your organization known on the global stage, one thing gets lost in translation: giving back to the community. We often won’t bat an eye at an expensive marketing campaign that promises to garner the attention of potential clients, but the thought of community-based activities makes us scratch our heads. If you’re leading a team of thousands of employees or need to expand your business to new territories, here are some charitable ideas to push your business in the right direction.

1. Establishing Positive Reputation and Reliability

In the business world, reliability and trustworthiness are essential. If a company earns a less-than-savory reputation, the trajectory of the organization trends downward with each passing year.

Knowing this, you must establish your business as a bastion of hope in times of hardship and uncertainty. By giving citizens the necessities needed to live a worthwhile existence, your organization stands out in a sea of nameless organizations whose only goal is to improve their bottom line.

2. Shaping Future Generations

It’s hard for corporate organizations to recognize the results of their efforts within a short timeframe. When a charity event takes place that helps impoverished communities in the city, it takes years, perhaps decades, for the results to become actualized. Knowing this fact, corporate giving should be deemed as a tool that shapes, sculpts, and promotes a healthy and productive future. Who knows: the child in need that you help today may become the future CEO, CFO, or marketing genius that takes your organization to the next level.

3. Company Morale

Did you know that giving a gift to someone feels better than receiving one? New data shows us that individuals who spend their hard-earned cash on a gift for another person feel happier, reduce their stress, and flood their system with “feel-good” chemicals like dopamine.

When we apply the giving principle in the corporate world, we see how charitable actions boost team morale and connection between various departments. If you’re a corporate entity that desperately needs a cohesive group of employees who believe in your company’s message, charitable events are essential.

4. Tax Benefits and Corporate Savings

Don’t worry; charitable activities have tangible benefits that organizations can use to their advantage. According to data released by the Internal Revenue System (IRS), corporations can deduct 25% of their charitable donations from their taxes, and any splash-over spending can be deducted from subsequent years. For organizations that need cash flow to stay afloat, charity is a unique way to keep expenses low.

5. Attracting New Talent

The days of posting a “help wanted” ad online and gaining the attention of hundreds of applicants is dead. However, charitable acts from corporate organizations draw the eyes of potential new hires who align themselves with the motto and mission your company exudes.

Conversely, top talent wants to be associated with organizations that, above all things, strive to do “good” in an era of quick fixes and impulsivity. Rather than counting their cash on a beach, high-level producers want to make a dent in the universe and produce tangible products and services that change the world.

6. Self-Perpetuating Marketing

One of the most challenging aspects of expanding a business to new areas is marketing in a way that speaks to people’s inner voices. However, one form of marketing stands out among the rest: word-of-mouth testimony.

Moreover, when individuals have a pleasant experience with a business, service or organization, they’re likely to tell their friends and family. If your organization’s charitable works are discussed amongst the community without your involvement or guidance, your success grows exponentially.

7. Sales Boost

It’s hard to envision how charity and giving back to the community puts money back into your pocket, but there’s a lesson to be learned: exposure drives sales. Let’s be transparent: if you create a notable charity event that involves the community in the area, all eyes are on you. When people see your organization’s name in a reputable light and understand your business philosophy, they’re more likely to do business with you in the future. If your business is struggling to hit monthly, quarterly or yearly sales quotas, it’s time to plan a corporate giving event soon.

As you can clearly see, there’s no downside to corporate giving, and failing to take these considerations into your business strategy compromises the success of your organization in years to come. Simply put, charitable actions not only benefit the community surrounding your location, but also allows employees and corporate leaders to express themselves in creative ways to build their conviction for the company’s mission.

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