4 Reasons Why Charitable Contributions Are Important to Business

If you are a business owner, never doubt the power of making charitable contributions. In fact, there are four main reasons why contributing to charitable causes is important for your business.

Tax Advantages

The most obvious reason that a charitable contribution is important for your business is because it may make you eligible to receive certain tax benefits. Start by speaking to your accountant to find out if you qualify for a tax benefit when you file your tax returns. Charitable contributions can qualify as tax deductions for your business. Make sure you keep a copy of your check or get a receipt for the total amount. If you donate goods instead of money, make sure you get a receipt that shows the value of the items donated.

Reach a Different Customer Base

When you make charitable contributions, make sure your potential customers are aware of this. For example, you might advertise that 5% of your sales is given to a specific charity each year. There are many potential customers who will reward your generosity by giving you their business. A small charitable contribution from your business can actually attract new customers and put more profit into your pocket.

Give Your Time and Money

Instead of only donating money to a charity, try also donating your time. You will meet people from all walks of life and from all income levels. Use this time to promote your business to attract new customers. Wear a t-shirt with your business's name on it or give everyone you meet a pen with your business logo on it. While you are doing charitable work, you might as well advertise your business in the process. The people you meet might patronize your business simply because they know you. Meeting new people is essential to getting more traffic through your doors.

Sponsor Charitable Events

You can choose to make your charitable contributions work for you when you sponsor a charity's event. You donate money to help a charity host an event, and in return, the name of your business is posted everywhere. Every time the event is announced on TV or on the radio, your business will be announced as a sponsor. Each time the event is posted in print, the sponsors are listed also. For example, if Melaleuca sponsors an event, that business's name gets wide exposure.

Making charitable contributions makes good financial sense. Along with helping others, your business profits as well.



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Wednesday, 17 July 2019
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