Charitable giving is something that many large corporations and high net worth individuals contribute their time and earnings to, often for tax relief purposes. But donating to an important cause is not just about reducing your tax burden for the financial year. There are many hidden (and surprising) advantages of giving to others.
Philanthropy satisfies the deepest of human needs – needs that cannot be met with money, recognition or success. By partaking in charitable events and campaigns, you can provide your employees with so much more value in their work. Here are the big-picture benefits of philanthropy that every business should know about.
Company Reputation
Other than the big tax advantages, being a charitable business can do wonders for your brand. CSR (Corporate Social Responsibility) is one of the most important trends driving businesses forward today, with things such as corporate activism being at the forefront. Customers want companies to care about social, political and environmental issues.
Through charity work, you can establish your position on various topics. Not only does this improve brand reputation for organic customer acquisition, but companies can attract and retain the best talent.
Health Benefits
There are numerous health benefits of giving and helping others. A NCBI study revealed a significant increase of dopamine and endorphins from people giving charitable contributions. At a very basic level, philanthropy can make people happier. By working on charity projects together, you can boost staff morale, increase employee engagement, and motivate teams to collaborate better. In turn, this can have great results for workplace productivity and performance, as well as staff retention.
Other health improvements associated with giving include lower blood pressure, increased self-esteem, reduced stress levels, longer life expectancy, and less chance of depression. This is great for employee wellbeing.
Personal Branding
Another key benefit of charity work is an opportunity to improve personal branding. For CEOs and high net worth individuals who are often in the limelight, the task of personal branding can be tricky. Particularly in today’s digital age where every comment or action is recorded for the world to see.
Some of the world’s most generous business leaders include Bill Gates, Warren Buffett, Mark Zuckerberg, and Michael & Susan Dell. Their reputations are well-managed in the public eye, and their charitable giving has placed them as people who bring value to communities.
Protect Your Local Community
The wider advantages of donating money from your business is the opportunity to make a difference. Make your local area a better place by helping charities reach their targets, and pump cash into the communities that need it the most. Everyone will benefit when their local area thrives. Local giving provides support for programs that can enhance community wellbeing, and that can help to drive your business forward.
You can also focus your time and energy on causes you believe in, and this can help to raise awareness for important world issues. For instance, if you want to promote sustainable practices, work with environmental charities and use your audience to spread the word.