You probably already know that helping people benefits yourself as well as the person you’re helping, but did you know it can benefit your business as well? Corporate philanthropy is becoming more and more popular as employees and consumers want to work with companies that are after more than just profits. This is especially true with the younger millennial and Gen Z generations. Here are more benefits of adding corporate philanthropy to your business.
Tax Deductions
You need to follow the rules, such as making sure you are working with a charity approved by the IRS, but any money you spend in the name of corporate philanthropy can be claimed on your taxes. The charity or nonprofit will also have to issue you a form to use on your tax return. But the tax deductions you get are one of the most immediate benefits of corporate philanthropy.
Improved Employee Engagement
As we mentioned earlier, many employees, especially the younger generations, want to work with companies that are involved with philanthropy. So not only will you appeal to these younger workers, but their willingness to engage with the community makes them better workers. They come back from their volunteer days feeling more refreshed and bring the lessons and skills they learned from volunteering into their job. The results may not be as immediately apparent as the tax breaks, but it is proven that corporate philanthropy makes for better employees.
Improved Brand Loyalty
It’s not just younger potential employees who want to work with businesses involved in corporate philanthropy; it’s also customers. Increasingly, customers are becoming more aware of a company’s social and environmental impact. As a result, they’re more willing to buy from businesses that try to make a positive difference, even if the product costs a little more. If two products cost the same, they’re more likely to buy from the company that supports causes the customer believes in.
These are just some of the benefits of corporate philanthropy. But, as you can see, adding it to your business does more than just help people who need it or make yourself feel good. It’s also simply better for your business.