Elevate Your Impact: 11 Reasons for Businesses to Boost Charitable Giving
Business can and should be a force for good. Here’s the data to prove it.
In 2022, Americans donated a staggering $499.33 billion to charities. Sounds impressive, right? But here's a thought—for-profit companies only accounted for 5.9% of that total.
If you're a business owner or a key decision-maker within a larger corporation, we’ve got eleven compelling reasons why boosting your company's charitable contributions should top your annual goals list. Whether you’re setting strategic directions or spearheading corporate social responsibility (CSR) initiatives, these insights will equip you to lead with generosity and foresight.
1. Proud Employees
Employees are proud to be part of the team at companies that give back. Research shows that 65% of Millennials would consider leaving a job if their employer lacks robust CSR initiatives. Commitment to CSR resonates with a workforce that values action and impact. Such initiatives enhance the company's image and solidify employee loyalty and pride.
2. Win Accolades
Companies committed to charitable activities often find themselves in the spotlight, receiving accolades and awards recognizing their contributions to society. These honors can elevate a company’s profile, endearing it to the public and setting it apart from competitors as a leader in corporate responsibility.
3. Happier Employees
Happy employees are productive employees. Engaging in corporate philanthropy has been shown to boost workplace enthusiasm and satisfaction. And companies with happy employees outperform their competitors by 20%. It's more than just a morale booster—it's a business strategy. When the company mission includes giving back, employees are more connected, fostering an environment where everyone’s inspired to give their best.
4. Benefit from Stronger Teams
Nothing unites a team like working together for a great cause, be it volunteering or making matching financial contributions to the same cause. When employees rally around shared charitable goals through company programs, it strengthens bonds and amps up the office's energy. It’s a win-win-WIN: a win for the company creating a stronger culture, a win for the employees who feel energized when giving back, and a win for a very worthy cause.
5. Employees Who Stay Longer
Did you know that employees who believe their company gives back to the community are likelier to stay put? A report reveals that 69% of employees feel a stronger loyalty to an employer with a workplace giving program. Higher retention rates translate to lower spending on hiring and training, making philanthropy a smart move for long-term stability and success.
6. Maximize Giving with Pre-Tax Contributions
When companies enable employee donations through pre-tax payroll deductions, every dollar goes further. For example, if an employee decides to donate $100 through a pre-tax payroll program, the actual cost to them could be less than $70, depending on their tax bracket. This means more money heads directly to charities without the tax bite, allowing employees to contribute more effectively. This setup maximizes the donation’s impact and enhances the total contribution without costing employees extra.
Want to learn more? Contact Rhiannon Andersen, Give Happy Foundation President, to learn how she implemented an employee matching program with her for-profit business, Steelhead Productions.
7. Build Owner Legacy
Infusing a business with a spirit of giving does more than meet the eye—it builds a legacy. It shapes how people now and years ahead will view the company's leadership and its core values. It’s about creating a lasting impact beyond profit, aiming for a positive effect on the community and industry.
8. Tax Benefits for Generosity
Charitable giving does more than just feel good; it’s also a solid financial move. Companies can claim tax deductions for donations, turning a good deed into a smart financial strategy. These tax breaks can lower taxable income, letting businesses keep more earnings. This means companies can direct more resources towards expansion or even increase their charitable efforts.
*Before acting - first consult your tax, legal or investment advisor.
9. Build a Stellar Reputation
Consumers are four times more likely to purchase from companies known for their strong purpose. When companies engage in charitable activities and direct financial giving while encouraging employees to make contributions, they not only aid those in need but also enhance their public image. This boosts consumer trust and attracts a loyal customer base, turning philanthropy into a powerful tool for business success.
10. Attract Employees and Customers
Companies known for their charitable donations build a positive image and attract people. When looking for a job, around 77% of Millennials choose to work for employers who are generous and clear about their purpose. Similarly, more than 70% of consumers prefer to buy from businesses that are actively giving back. Both talent and shoppers are drawn to companies that demonstrate a commitment to giving.
11. Create Good Karma
When a business consistently contributes to the greater good, it often finds that what goes around comes around. This good karma can manifest as enhanced brand loyalty, unexpected business opportunities, or the internal satisfaction of knowing your company is doing right by the world. It’s about setting a cycle of positivity in motion that returns in myriad rewarding ways.
The Ripple Effect
Each act of corporate generosity creates ripples that extend far beyond the initial splash. It’s not just about donations—it’s about cultivating a culture of kindness and reinforcing a brand that resonates positively both inside and outside the company. Moreover, this culture of giving boosts employee morale, creating an environment where people are inspired to work and grow.
Are you ready to elevate your business’s impact and foster a culture of giving? Contact the Give Happy Foundation today to discover how we make it easy for your business to make a difference.