Benefits of businesses working with charities
4 min read
08 December 2015
The world of business often has a tendency to come across as a rather hard-nosed sort of industry. Those outside of its boundaries can see businesses as elitist, uncaring, and only about one thing: making money.
In light of this, it’s little wonder that businesses have struck upon something that counteracts these thoughts – to work with charity. When a business chooses to work with a charity it shows itself to be human, personable, and certainly likeable.
Once a business has shown itself to be affiliated to a particular charity it can have a huge effect on how people perceive that business. Furthermore, when a business links itself to a charity – or a number of charities – it doesn’t just help that particular cause, it can help with the business’ own marketing goals too.
Instant Print teamed up with three regional and one national charity to this effect – allowing customers to design their own Christmas card with a logo of their chosen charity. This will both allow their own brand to be exposed while at the same time helping with donations to the charity.
So how exactly do businesses benefit from working with charities? To answer that question, we’ll look at three different methods: mutual marketing and publicity, tax relief, and simply “doing some good”.
Mutual marketing and publicity
This is perhaps the most obvious way that businesses will benefit from working alongside a charity, and that’s because it works in the same way as the old adage “two heads are better than one”.
Put two of something together and everything doubles up – publicity, exposure, interest, audience. For instance, not only will the business be drawing interest from its own clientele, the charity will be pulling in potentially interested parties by doing its own marketing – so both the charity and the business benefit.
Furthermore, when a business and charity work together it can become something of interest for the public – so much so that the press will cover it, thus generating even more publicity.
One of the major factors as to why businesses give to charities can be down to tax relief. That’s because a limited company that gives money (or certain other assets) to charity will benefit from paying less corporation tax.
Therefore, not only does the charity benefit, but the business benefits too. In order for businesses to benefit from this tax relief, each need to calculate the value of these charity donations and deduct them from company profits before tax is paid. As with everything, there are certain situations that won’t qualify – distribution of your company’s profits, for instance.
Simply doing some good
While the above benefits of businesses working with charities are a little on the perfunctory side, this final one offers a bit more “heart”. Giving to charity should fundamentally be about the good that such donations can make to the lives of others. Take major drinks brand, Innocent Drinks, for example. Ever since the company started out, it promised to donate ten per cent of its profits to charity – and look how the UK public has warmed to it. Add in the “Big Knit” campaign, where knitters make tiny hats for the drinks and each time one is sold, Innocent donates 25p to Age Concern, and this business has really run with the idea of working with and alongside charities.
When a business couples up with a charity, it’s also hugely beneficial for its employees as they are given an outlet to come together and raise funds, volunteer, and engage with a good cause. With so many benefits, it’s no surprise that more and more businesses are choosing to work with charities close to their hearts.