Donating to charity is good for individuals, entities, and businesses. It offers a sense of satisfaction, some mental peace, tax benefits, and even help with enhancing a brand's reputation. If you consider donating to a charity, the first question that might pop into your mind is how much of your revenue you should donate to charity. Read on to know the answer.
The Benefits
When you are undecided about whether
donating to a charity is a smart idea, you should know these benefits.
Ø Connecting with the Community
Donating to a charity will help you connect
more with the people in your community. This local connection helps you stand
out from the large corporations and why people will be eager to buy from you,
not a corporation based in another nation. People want to connect to local
brands that give back to the community.
Ø Growing the Network
Charitable donations are also helpful for
businesses that want to network within the community and expand their network. You
can meet with people who share the same ideas as yours and have similar
business goals at charitable events. The connections formed at charitable
events are often quite strong. You can also ask the charity to publicize your
support and let more and more people know about your initiative.
Ø Additional Benefits
Other benefits of donating to a charity include
a sense of satisfaction, more employee involvement, great company culture, and
a better overall reputation as a business and employer. Remember, millennials
prefer businesses that focus on corporate social responsibility.
How Much to Give?
According to a study conducted by The
Chronicle of Philanthropy and the American Express, small companies donate
about 6% of their profits to charity. When donating, you should ensure that your
money is what you can spare. Don't donate an amount that will sink your
business. Also, keep the tax returns in mind.
How Else Can a Business Donate?
Sometimes, a business can't afford to
donate as much as it wants to for a noble cause. If you face this problem due
to cash flow issues or another solid reason, you should know about other ways a
business can donate. Some of them are:
Ø Ask for Donations from Your Loved Ones
As a business owner and person, you can ask
people who love you personally or like your brand to donate to a cause you
support. Please give them the simplest path to donations so that they can do it
with a few clicks.
Ø Donate the Unexpected Money
If your business can't afford to donate a
specific amount every month or year, you can donate all the unexpected money
you get. For instance, if you get an unexpected tax rebate or generate a new
revenue stream, you should donate it.
Ø Save Over Time
If you can't donate a large amount for
donations every month, you can save up for a couple of months and make a large
one-off donation. It is useful for both individuals and businesses. You can also volunteer your time!
Final Words
It doesn't matter how much you can donate—even
a drop in the ocean matters. Also, review your donations regularly and ensure
that the money reaches those it is meant to reach.
Ready to donate? These are the best
charities in Canada.
To know more about how Canadians donate,
click here.
Sources:
https://www.goodbox.com/2019/10/how-much-should-you-give-to-charity/
https://www.businessnewsdaily.com/10470-small-business-guide-charity-donations.html
https://www.canadahelps.org/en/giving-life/giving-strategy/how-much-should-you-give/#:~:text=Start%20with%201%25%20of%20your,to%20give%20an%20additional%201%25.
https://www.marketwatch.com/story/how-much-money-should-you-be-giving-to-charity-2018-09-24