Ruby McKenzie
When you are a business owner, it is important that you know what you can do for charities, as well as what the benefits could be for you and your business if you do decide to start making donations. To ensure that you are up to date with all of your charity-related knowledge, here is a guide that can help you to know everything that there is to know about non-profit organizations and your business.
Where should your charitable donations come from?
When you are thinking about making frequent charitable donations as a business, you should first think about where this money is coming from. For instance, you should make sure that you prioritize the running of your business and any reinvestment that you need to make into it. You should only start looking into donating to charity once you have started to make a profit and have excess income, which you can then look at giving to a non-profit of your choice. As a company, you should think about giving between 1-6% of your profits to charity for this to be perceived positively by the public and to make sure that you are making a difference to the charities that you donate to.
What are the advantages of giving to charity?
There are many advantages for business owners who want to give to charity. One of the biggest advantages is that it can boost your public image and ensure that your company is seen as community-based, generous, and not focused completely on making a profit. Forging links with charities can also open up doors for you, and you might be able to collaborate with them, such as creating products and attending events, which can help you to make more sales and widen your audience. If you give to charity as a business owner, you will also be working to make a difference and improve your local community, and this might encourage employees to work for you, especially if you also support their attempts to donate to good causes.
How does this impact tax?
One of the motivations for business owners to donate to charities is that their donations are deducted from their profits at the end of the tax year. This means that they will have to pay less tax overall. This leads many business owners to consider donating money at the end of the tax year. End of year donations are easy to make under certain charitable schemes, and many charities allow you to make a quick contribution online before you need to submit your tax return. This can allow you to help out non-profits while also taking some of the pressure off your tax bill.
How can you find a great charity to donate to?
If you want to start giving as a corporation, you need to look out for charities that you want to donate to, with there being many organizations clamoring for your money. You should look out for charities that you respect and that are active in your community, as well as those that have a great track record and that are supported by others in your sector. You should also consider changing charities every so often to draw in new customers and to spread your donations out more widely. You could even get your customers to help you choose what charities to donate to.
