The term “corporate philanthropy” doesn’t have to imply blindly giving away company money. Several positive benefits come with corporate philanthropy. Not only does it help with recruiting and retention of employees, but it also has a positive effect on society and can improve the company’s image. There is no reason not to start corporate philanthropy today with so many benefits. This article will look at the benefits of corporate philanthropy and how it can help increase employee engagement, improve sales, retention, and reputation, and even reduce costs.
1. Increase Employee Engagement and Productivity
Giving employees a chance to give back to their community helps them feel more connected and gives them a sense of purpose. This leads to increased productivity and is also a huge competitive advantage for companies that give back.
2. Improve Brand Awareness and Reputation
Thanks to the internet, companies can start a company charity program immediately after signing their name to a check. By setting up a nonprofit organization, the company becomes involved in the community and gives back. This is often followed by press releases, leading to increased brand awareness.
3. Tax Deductions
There are several tax deductions related to charitable giving. For example, donations made to developing countries can trigger the Foreign Tax Credit; this income tax deduction allows a company to deduct part of its foreign taxes from its U.S. taxes. A donor may also be able to get a deduction for their total donations and deductions for charitable contributions made by an employee or as part of an employer matching program.
4. Increase Sales
Giving to charity is also suitable for business because it can increase sales. Through corporate philanthropy, companies have increased sales by proving that they are committed to giving back and improving their communities.
5. Better Employee Retention
By providing a platform for employees to give back, companies attract new employees and help keep their existing employees around for longer since they want to be part of the company’s community. In addition, it also helps with retention since it gives older workers more opportunities than just work.
As such, corporates should ensure they undertake philanthropy as it can help build a strong bond between the corporate and its employees and give the company a competitive edge.