If you’re a business interested in giving back to the community, there’s good news. Being active in charitable work can strengthen business relationships, partnerships, stakeholder relationships, local causes, and the community that supports you.
Community involvement isn’t just about self-serving promotion. Hopefully, you want to give back because your heart’s in the right place. Still, there are several ways giving back to the community can actually help your SMB.
Giving back to the community shows you care
One key way SMBs distinguish themselves from larger corporations is through their community connections. Businesses that give back almost always have a better local reputation.
We recommend that you give locally and work with local partners.
Sure, there are some great national charities. But people want to take part in causes that make a difference right where they live. When you plug in locally, you’re embedding yourself in the community.
People love supporting businesses that have a cause
This isn’t just about giving back, either.
On our About Us page, we have an acronym that describes how we do business: H.I.R.E. It stands for Honest, Integrity, Respect and Ethics. We want people to know we try to live out those values in everything we do.
Charitable giving builds alliances and improves partnerships
You can (and should) have a network of partners for everything from business requirements to charitable giving.
Businesses can build alliances by working with other organizations. Networking and charitable giving cultivate relationships with current and future partners and stakeholders.
SMBs can benefit from tax incentives
Typically, 75% of SMBs donate to charity with about 6% of profits go to charities. Tax benefits are based on revenue and amounts given. Research charities and carefully file the necessary tax documents to avoid IRS scrutiny.
- Check with your state’s specific tax rules
- Use accurate federal tax codes. Contributions might be limited to up to 50% of adjusted gross income.
- Before any giving, confirm the charity’s validity. Use sites like Charity Finder to view nonprofit financial breakdowns. Find charities registered as 501(c) organizations.
- Ensure you receive a standard form from nonprofits for tax-filing
Businesses can increase employee camaraderie and perks
Businesses aren’t limited to just donating money.
Donate time through volunteer efforts as a way to spend time with clients and friends. This sends a powerful positive message—to your community, your staff and your customers. And it boosts employee morale because you’re sharing in causes people are passionate about.
SMBs also benefit because employees embrace organizations that allow volunteer opportunities. This can be reflected in mission statements and through work experience. For example, a dog-friendly office and easily support local animal shelters.
Businesses benefit from PR and marketing
Use the PR you get from giving for your own marketing.
Take pictures at events and post them on your website. Consult the charity and discuss donations and any PR that will result from your giving. You may need their permission before sharing their name in announcements or press releases.
A final word about giving back to the community
There are several reasons for giving back to the community. Charitable giving can benefit your SMB in several ways, and it definitely helps the local community.
Talk to employees about charitable organizations they’re passionate about, do your research, and have a strategy. Decide whether you want to donate a portion of profits, time through volunteering or both.
Then start giving back to the community!