Why Your Business Should Be Charitable

Sara Stringer

August 05, 2013

	Not rated
	Rate:

Requiring employees to do community service, donating funds to charitable causes, lending professional support to local non-profits—there are lots of ways that your company can be charitable and help to improve the community in which it operates. The question, really, isn’t how your company can “give back.” The question you’re probably struggling to answer is “why.”

Your Reputation

Perhaps the biggest reason to engage in charitable activity is the boost it gives to your reputation. Here’s the truth: there are a lot of different things that can damage your reputation. For example, if your company has recently had to lay off a bunch of its employees, that is going to make you look bad. It’s important to have good things to help balance out the bad, that way you reduce the likelihood of people seeing you as being only out for yourself and your profit margin.

Jeff Bartel, for example, is one of the most influential financial experts in southern Florida. He has helped create record profits for the companies he’s served. What people remember, though, is not the amount of money that NextEra Energy made, it’s that it was named one of the world’s Most Admired Companies because of all of the charitable work that Bartel insisted they do. (Note: Bartel himself has earned a phenomenal reputation through his own extensive charity work.)

Your Money

As a small business owner, you’re probably looking for ways to both grow your profits and reduce your tax responsibility. Charitable work helps you do both things.

When word starts to spread about the work your company is doing for the community, people are going to want to look you up. This increased traffic can lead to many more sales. People are also more likely to choose you over one of your competitors simply because of your community-oriented approach.

The money that you funnel into charitable and community service based activities can often be claimed on your taxes to help reduce your company’s tax burden. Make sure you check with your accountant (and maybe even a rep from the IRS) to ensure this is possible before you actually file your taxes, though! You don’t want to get hit with an audit for improper claims!

Stronger Work Force

Companies that require employees to engage in community service projects have reduced turnover and a more productive workforce. The employees see the community service projects as a way to prove their commitment to your business. They really step up their efforts both in the office and during charity work. This means that you’re likely to see an increase in productivity from your people. It also helps you keep promotions in house (which is another reputation booster).

It’s important to note, too, that working together outside of the office on a shared project helps employees bond. Employees who feel bonded to each other have an easier time working together on professional projects and as teams. They get more done and are more likely to want to help each other out than show each other up.

There are lots of reasons to be charitable. The warm fuzzies it gives you and your employees is just the start. It’s also good for your business’s reputation and profit margin!