Giving to charity and helping local communities and people less fortunate, is an act of kindness that many get involved in. Lots of people give back through charities in numerous ways to help make a difference. It is very common for people to stick to charities that have meaning and purpose to them personally through life experiences, but some people try and give back to multiple charities. Various cultures and religions also have different ways of giving back, such as Muslims who give Sadaqah during Ramadan by helping to feed the poor through donating, volunteering, teaching and providing.
Giving back through charity is important for businesses to help their communities and make a change. It is also a great opportunity to get staff involved with giving back too. Many companies offer volunteering hours for staff to take so they can help give back to their local community. Giving back as a business benefits the community and helps companies build goodwill. However, giving back through charity can bring some challenges. Discover how your business can give back through charity and what you need to do to set your business up for giving back.
Why should your business help charities?
Companies can gain multiple benefits through donating and getting involved with nonprofits and worthy causes. It can shine a positive light on your business while you feel good knowing your business helps to make a change.
Connect to the community
Carrying out charitable efforts allows your business to connect to the community and gives you positive PR within the local community. It lets your business understand the community it is in while building vital connections and relationships with various people.
You can also show your local community that your company is in it for more than just profit. It shows you care about aiding others and being there for the community.
Improves brand image
Giving back to the world, as well as your local community, demonstrates corporate social responsibility. This can improve your brand image which leads to a more loyal customer base as they gain a genuine love for your company through these kind acts.
Boosts morale and improves company culture
Working with charitable organisations helps to boost staff morale as they feel like they are working for a business that cares. They can feel good working for you due to the positive deeds you carry out. It also shows new hires and future employees that your company culture is thoughtful and caring, focusing on a broader view of the world.
How you can donate and help give back
There are so many ways your business can give back that doesn’t just involve donating money. Consider how you can contribute to charities and decide which is best for your company.
Volunteer
Businesses can donate their time to help a good cause through volunteering. Get your staff involved and go as a team to volunteer in various places. You could help a homeless shelter, spend time at a local food bank, do a charity run, help pick up litter or help out local schools. You can even set extra time off hours for your staff to do volunteering in. This means they can take time off work, without affecting their holiday hours, to give back to the community. Doing this will encourage employees to volunteer more and make time to give back while using their unique skills and talents!
Donate unused items
Plan with your employees a swap day and advertise this to your local community. Encourage your staff to bring their unwanted or unused items they no longer need to give to the local community who may need or want them. This could be clothing, toys, books, technology and games. Anything that other people can get use out of that they may not be able to afford brand new. If your office or work environment doesn’t have space to hold the event, send these items to a local charity shop instead!
Donate online
Another way your business can give back to the community and world is through online donations. Choose a charity you would like to support, or multiple if you have the budget, and set up automatic donations through virtual giving platforms. You could also leave a collection jar at your place of business or online portal for staff to give through the platforms too.
Start a charity drive
Get your employees to start a collection for a particular cause. This could be collecting non-perishable food to donate to local food banks or to give to another part of the world!
Sponsor a sports team
A great way to give back is to sponsor a youth sports team. Youth sports organisations in the UK are always searching for businesses to sponsor their teams to help them keep running. Your donations could help a youth sports team to maintain their field or centre they use and fund their uniforms too. This lets children carry on doing what they love and having a hobby where they can socialise with others too! Plus, if you sponsor a team, you can have your company name and logo on signs where they play or even on their uniforms, so you get promoted while helping the youth!
Understanding charitable tax deductions
Now this is where donating to charities can get tricky for companies. In the UK when giving and helping charities, there is a Corporation Tax for limited businesses. In some cases, this tax can be quite high but most cases of donating to charity will see businesses pay less tax. This is usually when a company gives the following to charity:
- Money
- Equipment or trading stock
- Land, property or shares in another company
- Employees
- Sponsorship payments.
You can claim tax relief by deducting the value of your donations from your total profit before you pay tax. To find out more about Corporation Tax and how to manage this, visit the Government website.
Giving back through charity is so important for businesses as corporate donations can make a significant difference to local communities and the world. You can help others by ensuring your business supports charities and makes a difference. In turn, you could also receive some benefits such as loyalty from customers and new customers in the community. However, giving back shouldn’t be about trying to gain these benefits, it should be because you want to aid others using your business and doing acts of kindness for no financial gain.
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