How Donating To A Good Cause Can Help Your Business

Giving back does more than help a cause. Done thoughtfully, it builds goodwill, raises your visibility in the community, and earns loyalty from customers who want to support a business that shares their values. Here is how to choose the right cause and get involved the right way.

Which Kind of Charity Should Your Business Support?

It is easier to create opportunity when the cause connects to your business. For example, a tutoring company might send teachers into an under-privileged neighborhood and receive referrals in return. If you cannot think of any ideas, ask your employees or customers. They may already be close to certain charities and will return the gratitude when you donate. Supporting local charities also boosts your visibility in the community.

Get Involved, Do Not Just Write a Check

Hands-on, face-to-face involvement creates far more goodwill than a donation alone. Volunteering is also more affordable than a large cash gift. However, do not force employees to volunteer. No one should feel stigmatized for choosing not to help.

Similarly, customers may disagree with certain charities depending on the cause. If that happens, a business owner can simply say they feel strongly about the cause and leave it there. Keep in mind that customers increasingly want to “shop their values,” so standing behind a cause you believe in tends to resonate more than staying silent.

Talk to an Attorney

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This article is provided for general information only and is not legal or tax advice, and reading it does not create an attorney-client relationship. The tax treatment of charitable giving depends on your business structure and situation. Contact Spiegel & Utrera, P.A. to discuss your situation.