Charities serve an important purpose in society because they work to promote causes and solve problems in communities. Businesses should consider regularly taking part in charity events, small or large. Companies that contribute to charities can see a number of different benefits over time. Not only can your business help others in the community through charities, it can generate the awareness you need to get more branding for your company. Here are the five reasons companies should get involved in a charity event:
Earned Advertising
Charity events are often covered by local, and sometimes national, media outlets. Companies that take part in the event are likely to have the name or logo of the business printed somewhere. This could be on a hanging banner, handouts or press releases. This can generate earned advertising. Earned advertising from charity events is valuable because it almost always builds a positive image for your business.
Build Community Trust and Support
Getting involved in a charity event will help to build community trust and support for both existing customers and potential customers. Companies that take the time to donate to a charity and appear at an event are seen as more trustworthy and honest than businesses that do not. This can also translate into support for the business in the community because consumers feel the money spent with the company will partly go towards a good cause.
Help the Local Economy
Companies operating with a local presence in a city or state should get involved in charity events because they can help the economy of the area. Businesses cannot thrive if the people in the community are struggling to meet basic needs. Charities directly address these issues through advocacy and action. Companies taking part in charity events are empowering the community and improving the local economy. An article on entrepreneur.com suggests that it’s a good idea to get involved in a charity that is close to home, so you and your customers know where your money is going.
Tax Benefits
Taking part in a charity event has some tax advantages for businesses. Companies can often deduct a specific amount depending on the exact charitable contribution. For example, a business that chooses to supply boat donations for charity can deduct the amount the craft sells for later when auctioned. Different types of contributions have various rules for deductions. These deductions can help to reduce tax burdens from other areas of the business.
Increase Employee Morale
Companies will want to get involved in a charity event because it also can increase employee morale. Employees can come together for a single cause and enjoy getting to know each other outside of work. It encourages employees to work harder and gives them a sense of pride in the company they work for.
Taking part in a charity event is a very public way for a company to associate itself with a cause. Some businesses even adopt specific causes and donate extra time and resources to those charities. Charity events ultimately benefit everyone who is involved.
