Benefits of a donation
- Business News
- Managing a Business
Charitable donations are one of the great privileges of running a business. To be able to give back to the local community, organisations and causes that matter is often at the philanthropic core of any business.
While the generosity of WA businesses does not go unnoticed, are these businesses achieving the most mileage for this support in return? Further, how can businesses maximise the value of the donation?
Here are the top three benefits of a charitable donation that reinforce the importance of corporate giving within the community:
1. Free Publicity
A donation – whether a once off payment or an ongoing sponsorship – to a local organisation or charity can only reflect positively on a business. Often without the financial support, sporting clubs, local community charities and organisations cannot survive.
So, ensure your business is receiving the maximum exposure in return. Social media platforms, websites and events are a great way to make sure your business branding is hitting the charity’s audience.
Further, ensure your business promotes the charity on marketing platforms too. How to maximise this publicity? See the checklist below:
- Create a “Community” page on your business website
- Social media posts on the associated charities
- Blog posts and EDM’s on community updates sent to your database
- Signage/charity box in the workplace
- Employee events involving the charity or organisation
Sharing news of any charitable support is a simple way of generating free publicity and newsworthy content both for the business and the cause. It’s a win-win!
2. Tax Deductions
One of the most immediate benefits to your business from donating to a charity or organisation is being able to claim a tax deduction. Donations that are generally tax-deductible include sponsorship’s of charities or events, donations of inventory or services and cash donations.
Is it a gift or a contribution?
According to the Australian Taxation Office, a gift is “a donation of money or property made voluntarily with no material benefit to the donor. It must fall within our definition of a ‘gift type’.”
“If businesses receive a material benefit – that is if the donor receives something which has a monetary value from the deductible gift recipient in return for their donation – the donation is called a contribution.
“Businesses will follow different rules for claiming tax deductions depending on whether the donation is a gift or a contribution.”
3. Grow Employee and Customer Support
Giving back to your community will assist your business to build stronger relationships with existing customers – and gain new ones.
“The 2018 Cox Business Consumer Pulse on Small Businesses survey polled 1,100 consumers and found that 71 percent of people who responded said they would spend more money at a small business if it supported a positive social or environmental cause.”Cox Business Consumer Pulse
Giving back to local charities shows your customers that your business cares about your community, so what does it mean for your employees?
Getting your business involved with your community is a great way to boost team morale and keep your employees fulfilled.
Give your employees time to be a part of the charities your business supports – volunteering during work hours is a rewarding experience for the whole business. Not only does it give the team the opportunity to interact outside of the office, but it also fulfills the satisfaction of giving back to the community that has supported the business.
Not sure which charities to support? Start by a meeting with your employees to find out their interests in supporting a local charity or organisation – and which ones lay close to their hearts.
Remember, the spirit of being able to make a difference in the community is a powerful one!
Elevate in the WA Community
Elevate Accounting are proud supporters of some incredible organisations within the WA community. To find out more and to offer your support click HERE.