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'Tis the Season: How Giving Leads to Growing
Posted on 12/19/2016
‘Tis the season of giving, but for your small business, that might be easier said than done. After all, if you’re intent on growing your business, you need to save all the money you can, right? Actually, in some cases, this may not be the best maneuver.
Turns out, being philanthropic with your business can actually lend itself quite nicely to promoting your brand and growing your consumer base. And how? Check out these quick tips on how giving back this holiday season can actually grow your business later on.
Giving showcases your brand.
First and foremost, giving to local charities in your community showcases your business brand in a positive light. Whether it’s sponsoring a local sporting event, donating to a nonprofit organization or volunteering your time, giving allows your business to give back while showing off… just a little.
When your business is out and involved in the community in a positive way, it draws consumers to your image, and shows them you’re a company that cares. Consider giving as a significant return on investment. Your business invests in helping others, and you get free publicity in return. Sounds like a great deal to grow your brand name.
Giving is tax deductible.
That’s right, supporting a charity is often a tax deductible endeavor for your business. Donations which are often tax deductible include sponsorships of local charities or events, inventory or services donations and of course, cash donations.
Generally, your business can benefit from deductions on charitable donations of up to 50% of your Adjusted Gross Income. Of course, before jumping into the giving season, be sure to check on what is tax deductible in your community and how this would fit into your business tax plan.
Giving motivates employees.
If your business wants to boost employee morale and encourage involvement, try giving back to the community. In the last few years, employee perks have escalated to new heights, and community involvement is often something the most qualified employees look for in their company search.
By offering volunteering opportunities and encouraging giving as part of your business mission statement, your company will be able to attract the right employees who not only work hard, but have giving hearts. Gain and retain more employees by giving back in your community.
Giving gains customers.
Most importantly, customers are more attracted to companies who show they care for the community. Your business can do some research in the local community to find what causes are most attractive to the population, then show your involvement by giving back. Not only will customers like your philanthropic side, but they’ll feel more comfortable trusting an organization they’ve already seen in the community. Giving not only builds stronger relationships with current customers, but it helps attract new customers as well.
This holiday season, get your business in on the action by giving back to charitable efforts in your community. Plant the seed for your small business now and watch as it grows your company even more later on.