WHY PARTNER WITH ALIVE?
Many Americans spend more time at work than anywhere else, and the more pleasant and fulfilling that work environment is, the happier people are. While charitable giving is the not the epitome of happiness in the workplace, studies have shown that charitable giving results in significantly improved employee engagement and morale.
An article on Entrepreneur.com stated, “In organizing and offering charitable opportunities for employees, companies can create strong traditions, which promote a sense of pride and ownership among employees.” The article cited a study done by O.C. Tanner in which over 1,000 employees at companies across the U.S. were surveyed to understand how they perceive corporate charitable giving. The author highlights key results from the survey: “When asked if their organization has a clear purpose, respondents who answered ‘yes’ jumped from 62% for companies that don’t organize holiday charitable events, to 84% for companies that offer multiple holiday charity events -- a leap of 22% for a program generally unrelated to corporate vision or mission statements.” Among a group of respondents asked specifically about charitable events, 37% felt more connected to their company culture when they had opportunity to participate in charitable events. Moreover, 57% of respondents believed that charitable events made for happier teams.
Consumer perception, marketing and profitability
Consumers see a company’s values as equally important as its responsible business practices. While a majority of charitable giving comes from individuals (70%), individuals expect corporations to commit to bettering the world, and they’re willing to put their money where their mouth is.
According to the
2017 Cone Communication Study, 87% of individuals will purchase a product because a company advocated for an issue they cared about and 76% will refuse to purchase a company’s products or services upon learning it supported an issue contrary to their beliefs. The same report states that in the past 12 months, 50% of consumers indicated they have boycotted a company’s products/services upon learning it behaved irresponsibly.
It’s clear that contributing to charitable organizations improves consumers’ perceptions of your products and/or services. Aside from consumer perceptions, contributing to charity can function as a form of marketing, as the nonprofit organizations often publicly thank their corporate sponsors. These public displays of gratitude often include things like social media mentions, content on the nonprofit’s website, event-specific merchandise and more.
All of these benefits of course lead to the bottom line – corporate profitability. A company’s goal is to make money. As the statistics above clearly show, individuals are more likely to purchase goods and services from companies they perceive as a positive impact on the world. Sales growth provides more opportunities for companies to convert those dollars into profits.
Companies shouldn’t donate to charity simply because of the tax deductibility, they should donate because of the impact it has in the community and world. The desire to help the less fortunate or admirable, impactful causes in an innate desire within many of us. Corporations have the ability to make a significant impact on the world.
Contributions to nonprofit organizations are tax deductible. Corporations may not deduct more than 10% of their pretax income in a given year but, like individuals, may carry forward excess donations for five years. Donations can be monetary or in-kind, and the tax deductibility can differ between the two groups (both negatively and favorably). Be sure to check with a tax professional to confirm any questions and/or concerns.