Why Small Business should support a Charity

Charity-collection

In today’s economic turmoil, small businesses have an uphill battle on their hands. They have to find a way to separate themselves from the market, while at the same time competing against much larger companies in their industries. Small businesses have to be on the lookout for any strategy that they can use to reach their target market and boost their brand image. One of the best ways to do just that is to work with a charity on a regular basis. How can working with a charity help your small business?

Networking

One of the best things that can come from working with a charity is that it gives you an opportunity to network. Many of the people you need to make contacts with are sitting on the boards of charitable organizations. If you get involved with these charities and get to know the people you’re working with, it can open up a world of opportunities for you. For example, you might get to know the president of a company that distributes the same types of products your business sells. By forging a relationship, you may be able to secure a great contract for the future.

Tax Breaks

When you get involved with and donate to a charity, it can also help your business at tax time. Businesses can donate money directly to charity and get tax deductions for every dollar they give. This reduces the amount of money that you have to pay taxes on, and it eventually lowers your overall tax bill. With this in mind, it may make sense for you to increase your giving once you find a charity that you can believe in.

Associate Your Name

Another way that getting involved with a charity can help is by associating your name with that organization. Charities tend to have good reputations in local markets, and people look favorably upon them. If you can get your name out there with the name of your charity, it has the potential to boost your brand image in the eyes of your potential customers. For example, do a press release talking about a joint fundraising project that you worked on with your charity. Come up with some kind of marketing campaign that talks about both your company and the charity that you are choosing to work with. You don’t want to be blatant about it, but you should name drop in this situation.

Increase Your Customer Base

One of the nice things about working with a charity is that it can increase your customer base. You may have opportunities to market to the constituents of the charity, the employees, the board of the charity, and anyone else associated with it. While you don’t want to overdo it right off the bat, this can be a valuable tool to use in some cases.

You may also want to advertise some kind of a giveaway that you are going to offer the charity. A car lottery is also a popular way to do charity. You might want to give away a cash prize or some other gift that would be of use. If you handle it with the charity correctly, it can be a tax write-off for you as well as a big publicity generator. It will also help those who need it the most. Giving something away can be a very effective way to generate some positive PR while at the same time bring more people into your business and helping someone who is in need.

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