Businesses donate billions of pounds to charitable causes every single year.
The more your business becomes successful, the more likely you’ll be considering donating to philanthropy to give something back and raise awareness for a worthy cause.
There are a range of advantages associated with donating to charity as a business, and this guide will cover 5 of the key benefits.
Benefits of donating to a charity as a business include, but are not limited to:
- Corporation tax relief
- Helps you to establish brand identity and recognition
- Supporting a worthy cause
- Boosts employee morale
- Improves public relations
1. Corporation Tax Relief
One of the most significant benefits of donating to a charity as a business is corporation tax relief.
Limited companies are required to pay corporation tax on their profits every year, but donating to charitable organisations is a way to redistribute this money to people that need it most.
Corporation tax relief applies to businesses when they give the following to charity:
- Money
- Land, property, or shares in another company
- Equipment or trading stock
- Employees that are on secondment
- Sponsorship payments
You can claim tax relief as a business by ‘deducting the value of your donations from your total business profits before you pay tax’.
As you’ll be donating to a charity you’re passionate about and could be paying hundreds of thousands of pounds less in corporation tax, corporation tax relief can be a huge incentive to donate to charity as a business.
2. Helps You To Establish Brand Identity & Recognition
Another key benefit of donating to a charity as a business is the brand recognition that comes with it.
Getting involved with a charity can help you to establish a brand image that’s both ethical and reliable, not only putting your business in a good light but also helping to generate brand awareness.
This exposure helps to increase interest in your business from both customers and potential future recruits alike, as regularly being charitable will play a large role in what your brand will become recognised for.
In turn, this will help to nurture a positive relationship between your business and customers and will keep your brand at the forefront of consumers’ minds all whilst supporting a charity.
3. Supporting A Worthy Cause
A key benefit of donating to a charity as a business is supporting a worthy cause.
While larger, widely recognised charities receive millions of donations per year, many small charities are often overlooked and unfortunately don’t have the support they so desperately need.
By donating to charity, you’re actively supporting people and organisations by giving something back to the community and the individuals working hard to make a difference every day.
At Sea Trust Wales, we work to protect local marine wildlife and raise awareness in the local community and rely solely on funding and donations to run our educational aquarium and wildlife surveys.
We aim to inspire the community to care about their local marine wildlife by educating them on the diversity of wildlife around the Welsh coast and engaging them in its protection.
If you’re interested in donating to Sea Trust Wales or learning more about our projects and research, you can get in touch with a member of our team or donate on our website.
4. Boosts Employee Morale
Donating to charity as a business can also be beneficial in helping to boost employee morale.
Philanthropy is something that many people feel proud to be associated with, and can thus help to increase employee morale and loyalty.
Additionally, allowing employees time to volunteer for causes they consider important in the form of paid charity leave, for instance, can help to improve morale and commitment amongst employees.
The importance of prioritising employee morale is emphasised by the fact that ‘happy employees are as much as 20% more productive in the workplace than unhappy employees’, not to mention how job dissatisfaction can result in higher staff turnover.
By giving back in this way, you can foster a positive working environment to promote a happier workforce that feels more fulfilled in their roles, and in turn, help to improve staff retention.
5. Improves Public Relations
Last, but not least, a benefit of donating to a charity as a business is that it improves public relations.
Making donations and getting involved with charitable events can result in positive press and media coverage, playing a big role in establishing brand awareness and authority.
The positive press, as well as showcasing that you’re committed to charitable causes as a business on your website, can have a positive impact on employees and on customers alike.
This comes down to the fact that charity work naturally reaffirms that you’re a business worth working for and shows clients you’re worth investing in.
Hopefully this article has given you a wider understanding of the benefits associated with donating to a charity as a business.
Sea Trust Wales is a charity committed to studying and raising awareness of local marine wildlife.
If you’re interested in any of our projects, including our porpoise ID project, want to take part in our VR experience, or seashore safari, or visit our aquarium or cafe, contact a member of our team today.
Written by Jemima Thomas for Sea Trust Wales.