There’s no doubt that big businesses get the lion’s share of attention when it comes to charitable giving. But what about small businesses? Contrary to popular belief, small businesses are generous in giving back to their communities. For example, a recent study found that small businesses donate more than twice as much per employee as large businesses do. So why are small businesses so charitable? There are many reasons, but here are just a few of the most important ones.
The benefits of small business charitable giving: why you should give back
Small businesses often get a bad rap when it comes to charitable giving. They’re accused of being stingy, ungenerous, and even selfish. But the truth is, small businesses are some of the most generous givers out there.
According to a recent study by the National Philanthropic Trust, small businesses give an average of 5 percent of their profits to charity each year. That’s more than double the amount given by large corporations.
And it’s not just money that small businesses are giving. They’re also donating their time, expertise, and resources to help make the world better.
Here are just a few of the many benefits of small business charitable giving:
- It’s Good for Business
When you give to charity, you’re not just helping others—you’re also helping yourself. Numerous studies have shown that charitable giving can be good for business.
For example, a study by the social media platform LinkedIn found that 61 percent of consumers are more likely to buy from a company that supports a cause they care about.
Another study, Cone Communications, found that 87 percent of consumers say they would purchase a product from a company that supports a cause they care about.
And it’s not just consumers who are influenced by a company’s charitable giving. Employees are also more likely to stay with a company that gives back.
A study by the Committee Encouraging Corporate Philanthropy found that 89 percent of employees say they would be more loyal to a company that supports causes they care about.
- It Helps You Stand Out from the Competition
In today’s competitive business world, finding ways to stand out from your competitors is more important than ever. And one way to do that is by being a charitable company.
According to a study by Cone Communications, 82 percent of consumers say they have a more positive image of a company that supports social or environmental issues.
So if you want your business to be seen in a positive light, consider giving back to the community. It’s a great way to differentiate yourself from your competitors.
- It Makes You Feel Good
In addition to being good for business, charitable giving can also be good for your mental and emotional health. Numerous studies have shown that giving back makes people feel happier and more fulfilled.
For example, a study by United Healthcare found that 70 percent of people who volunteered in the past year said it made them feel healthier.
Another study, this one by the Corporation for National and Community Service, found that volunteers had lower mortality rates than those who didn’t volunteer. They also had lower rates of depression and anxiety.
So if you’re looking for a way to boost your mood and feel good about yourself, consider giving back to the community. It’s a great way to make a difference in the world and improve your own mental and emotional health.
- It Strengthens Your Community
When you give back to your community, you’re not just helping those in need—you’re also helping to strengthen your community as a whole.
Giving back can help build social capital, which is the networks of relationships that people have with each other. These relationships can provide support, trust, and cooperation within a community.
According to a study by the Harvard Business School, companies that invest in social capital are more likely to prosper than those that don’t. So if you want your business to thrive, consider giving back to your community.
- It Makes You a Better Leader
If you’re a small business owner or manager, charitable giving can also help you become a better leader.
When you give back to the community, you’re setting an example for your employees and showing them that you care about more than just making money. This can inspire them to work harder and be more engaged with their work.
In addition, giving back can help you develop important leadership skills, such as empathy, communication, and problem-solving. These skills will not only make you a better leader—they’ll also make you a better business person.
If you’re looking for a way to improve your leadership skills, consider giving back to the community. It’s a great way to develop important skills that will help your personal and professional life.
Giving back to the community is good for business—and it’s good for you, too. So if you haven’t already, consider making charitable giving a part of your business plan. It’s a great way to improve your bottom line and make a positive impact on the world.
Small business guide to charitable giving and tax deductions
As a small business owner, you may be looking for ways to give back to your community and support causes that are important to you. One way to do this is through charitable giving. Not only can you help others, but you may also be able to take advantage of tax deductions.
Regarding charitable giving, there are a few things to keep in mind. First, you’ll want to make sure that you’re giving to a qualified organization. This means the IRS has approved an organization as a 501(c)(3) charity. You can check this list of qualified organizations on the IRS website.
Second, you’ll want to keep track of your donations. This includes both monetary donations and donations of goods or services. You’ll need documentation of your donations to claim a tax deduction.
Third, there are limits on how much you can deduct. For monetary donations, you can deduct up to 50% of your adjusted gross income. In addition, you can deduct the fair market value of the item or service for donations of goods or services.
Fourth, you’ll want to ensure that you get a receipt from the organization for your donation. This receipt should include the name and address of the organization, as well as the date and amount of the donation.
Finally, if you’re planning on claiming a deduction for a charitable donation, be sure to do so on your tax return. You’ll need to itemize your deductions to claim charitable giving as a deduction.
Giving to charity can be a great way to support causes you care about and potentially save money on taxes. Just be sure to follow the rules and guidelines set forth by the IRS.