How Big Brands Can Benefit From Charity – According to an article from USA-Today.com, “Bill Gates is a noted philanthropist, who has given more than $50 million since 1994. And notably, his wealth has grown faster than he has donated money.”
How Big Brands Can Benefit From Charity
So the question is- whether charity and donations help build bigger brands?
Quite notably, the idea is not at all new to the corporate world. In fact, billionaires and millionaires around the world often donate to charity. They do so to support social causes they believe in- often known as philanthropy.
However, it is also noteworthy that charities have more to offer than just a feeling of generosity. Indeed, more on the corporate front than anyone can anticipate.
It Helps Earn Customer Loyalty
The most common of all the benefits include customer loyalty. The Millennials and the Gen Xers have been raised in a society that is concerned about sustainable growth.
A report suggested that shoppers are more likely to buy products that give them a sense of charity. For example, if buying a book could donate a portion of revenue to educate the poor. Such ideas are not new. And they have been a great way to earn customer loyalty, bringing in repeat customers.
It Creates Internal Motivation
Having a mission or a vision for the company helps drive more employee engagement. How? Reports suggest that employees working for a cause are more likely to find a sense of belongingness in their work. The people who are familiar with the ‘why’ of their profession embrace the responsibilities more happily.
By donating to charities, a similar sense of cause and reasoning can be induced. As you can also read here, https://timesofstartups.com/interview/an-interview-with-adam-ferrari-founder-ceo-of-ferrari-energy/, it not only boosts employee morale but motivates them internally to work better. Which in turn, helps increase productivity and ultimately profits for the organization.
There Are Tax Benefits Involved
While it’s not that obvious, the tax benefits for non-profits are also shared by their corporate partners. Though the benefit does not mean that corporations are completely exempted from paying taxes.
Notably, there are certain slabs in every tax system globally, that exempt non-profit. It also includes the charity and donations they receive from corporates. And likewise, the corporates are also slacked for the amount they donate to the charity. In other words, the businesses are not required to pay taxes on their transactions with non-profits. Given that the revenue is not used for any profit-making activity.
Clearly, there are benefits involved for corporates in partnering with charities and foundations. But, quite interestingly, there are benefits for the non-profits as well. For example, they can acquire capital to expand their operations. Likewise, nonprofits can also use free-of-cost media coverage. On top of that, they can expect to attract more investors and partners for their cause.
So, it is not only the corporates who are benefiting from charities but also non-profit organizations. It is more of a win-win situation for both. While one gets better branding the other receives the capital to stay operational. Ultimately, improving lives for all in the society.
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