The onus of philanthropy has shifted from a handful of wealthy, well-known individuals to entire corporations, many of which have net worths exceeding the richest people on the planet.
Corporate philanthropy is a fast and efficient way to accumulate vast amounts of capital from small-dollar donations, which can be given to a particular cause or charitable organization. Here are three other benefits of participating in corporate philanthropy.
1. Improvement in Company Morale
While corporate philanthropy aims to generate positive social or environmental change through sales, the positive effects on company workers are often overlooked. Employees who work for businesses with philanthropic tendencies may feel that their career is making a difference in the world, not just within the corporation itself. Corporate philanthropy may incentivize workers to stay longer and decrease employee turnover.
Additionally, people who engage in charity work, like David Johnson Cane Bay Partners co-founder, often experience a sense of fulfillment and purpose. Charity work is believed to reduce stress because it activates the reward center of the brain. This triggers the release of chemicals that promote happiness and tranquility.
For these reasons, corporate philanthropy often improves employee engagement and strengthens relationships between coworkers, creating a healthy company culture and increasing overall productivity. It might even attract more applicants for vacant positions in your business.
2. Increase in Public Awareness of Your Brand
Consumers are becoming increasingly mindful of the products they purchase and the companies they buy those goods from. Many consumers prefer to give their money to corporations that donate to charitable causes over those that do not. Doing so makes them feel that they are contributing to something greater than themselves.
Customers will also be more likely to post about your brand on social media and to recommend your products and services to friends and family. You can generate even more interest in your business by posting about your charitable endeavors on the official business website and its associated social media accounts.
Enhancing public awareness of your business will elevate its reputation as a company that cares about more than its bottom line, prompting more consumers to purchase from your corporation. This influx in consumerism will increase company sales, and the profits can be invested into more philanthropic pursuits, thereby sustaining the cycle of giving.
3. Opportunities for Tax Incentives
While the promise of tax deductions for your company should not be the only reason for contributing to a worthy cause, it is certainly a perk of engaging in corporate philanthropy. Meeting with a financial consultant will make sure that your company’s charitable donations are meeting all necessary criteria for a tax deduction. Your business should also archive every document that records charitable spending habits to ensure that it receives the appropriate tax deductions.
In a world where consumers and workers alike are becoming more aware of how their lifestyle choices affect the world around them, companies must give them a reason to remain loyal. Partaking in corporate philanthropy will keep people engaged and will help your company make a meaningful impact on society.