| Yesterday’s practice of companies simply giving money away to good causes has been superseded by today’s strategic philanthropy, which ties donations of time, money, and in-kind gifts to defined business goals and desired benefits. Companies that have created corporate foundations or corporate giving programs have discovered that partnerships between private enterprise and public interest can produce profitable outcomes for all.
The charitable donations of old are now being managed as investments, subject to the same rigors of analysis as other business practices. The numbers indicate clearly: companies large and small do well by doing good.
83% of Americans have a more positive image of companies that support a cause they care about
65% of Americans would switch to a brand associated with a good cause, price and quality being equal
87% of employees at companies with cause marketing programs feel a stronger sense of loyalty to their employers
Source: 1999 Cone/Roper Cause Trends Report
Tax Relief
Donating money to charity via your company’s corporate giving program or foundation can be a very tax efficient way of supporting your chosen cause. When a company makes a donation, it gets tax relief by deducting the amount given from profits and pays less corporate income tax. Generally, a corporation may take a deduction of up to 10% of its taxable income for the year.
Size doesn’t matter: Large and small companies benefit.
Businesses of all sizes have reaped the benefits of market share, human resource, and public relations advantages that philanthropy offers, through programs that align community responsibility with business need. Addressing the problems of the people in your community can-and does-stimulate business development. Better education today means a more skilled workforce tomorrow; lower inner-city unemployment means higher consumption in the inner city. Companies can share a wide range of resources with their communities, including time, money, talent, and products, plus enjoy tax relief. |
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