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Why businesses should prioritize charitable giving: 6 reasons to do it


Social responsibility drives people, and they want to support charities and brands that offer donations to organizations they care about. We outline the benefits and reasons that charitable giving is something that all businesses should prioritize.

The notion of giving back can be compelling for sales and your overall purpose. One of the greatest privileges of running your own company is giving to causes that matter to you. Business funding for humanitarian needs includes donating products, volunteer hours and money, as well as conducting charitable outreach efforts to help their community. Generosity is indeed the new way to market. The importance of humanitarian business efforts outweighs most other aspects of owning a company today because it shows your values and intentions and helps you gain new customers.

Why businesses should prioritize charitable giving

1. Charitable Giving Boosts Employee Morale

One of the reasons why you should participate in corporate giving is because it boosts overall employee morale. When you actively and openly donate your time, efforts, products or money to charity, your employees will be more likely to involve themselves more with work and have a positive attitude. 

People tend to rate their corporate culture as more positive if their company either donated to charities that matter to employees or even participated in volunteer efforts. Workers want their employer to be active in community care, and higher morale means more productivity and efficiency in your workplace. Plus, this indicates you’ll likely have committed employees and a lower turnover rate. 

2. Charitable Giving Reduces Business Taxes

Perhaps one of the most immediate benefits for your business to prioritize charitable giving is that you can lower taxes. With each donation your company makes, you get a charitable donation tax deduction. Types of charitable contributions that are typically tax-deductible include donating inventory, services, cash or even sponsoring philanthropic events. 

Ensure you are working with a nonprofit organization approved by the Internal Revenue Service (IRS). You’ll also need to get a tax form from the charity or nonprofit organization so you can use it when you file a tax return. Although this is an excellent benefit to prioritizing charitable giving, you shouldn’t donate with the sole purpose of making a financial gain. 

3. Charitable Giving Benefits the Greater Community

Giving back through charity benefits the greater community. You should want to do this as a business because it likely supported the start of your company. People love supporting small, local companies, and when you offer a charitable donation, it helps better the community because you’re making an effort to improve your surroundings. 

It all goes back to the shared responsibility to help others around you. As a human and business owner, you have an innate understanding of this moral obligation. Funding, for whatever cause, makes a real difference. A donation given by your company may even start a domino effect for other businesses, further expanding community benefits.

4. Charitable Giving Increases Marketing Efforts

Philanthropic companies tend to be successful and influential. Businesses that match employee donations or make an effort every year to give something to charity often have the upper hand among competitors. Charitable contributions do good for your community, and they get the word out about your company even more. 

Donations in your company’s name get your business out there, especially if you sponsor an organization or some type of event. You get free publicity while raising awareness about a cause and promoting your business with the partnership. Besides that, prospective customers may become emotionally connected to your company because you help the community. 

5. Charitable Giving Gains Customer Support and Perception

When you give back to the community, you build stronger relationships with your existing customers and gain support from new ones. Customers often have a better outlook on businesses that give their services, goods or money to a charitable organization. Your brand could research the market to see which organizations your customers care about to further that support and perception. 

Donating to the community resonates with your customers. They’re more likely to recommend your brand over another because of your charitable efforts. This makes you look good to the general public, and it engages younger generations who are more in tune with social responsibility. 

6. Charitable Giving Offers Mutual Relationships and Builds Networks

Prioritizing charitable giving creates a mutual relationship with the charity or nonprofit organization, and you can use that relationship to build your network. Networks are essential for businesses, and you’re only as strong as your connections. 

Donating to charity allows you to build a higher profile network, which can enhance your company’s reputation. Both parties benefit — the organization you donate to can improve the lives of people in need in your community, and you get free marketing and a support network that will recommend potential customers or clients to you.

How to Make Charitable Giving Part of Your Business

If you’re new to owning a company or haven’t made any contributions before, here are some tips on how businesses can support charitable funding. 

  • Make regular financial donations to a charity of your choice. 
  • Donate any unsold products rather than letting them sit or go in the trash. 
  • Give a percentage of your sales to charity. 
  • Invite your customers and clients to donate. 
  • Sponsor a community event. 
  • Fundraise for a nonprofit organization or charity. 
  • Ask your employees to be part of a volunteer effort in your community and beyond.

This is just a small list of the endless possibilities you have as a business owner to prioritize charitable giving for your company.

Summary: Make a Social Impact

As a business owner, you have the power to make a social impact by offering time, services, products and money to charities. Do your part, and you’ll soon see the rewards.


About Ginger Abbott'

Ginger Abbot is an education writer with a special interest in career development and the workplace. She is also the Editor-in-Chief of, where you can read more of her writing.

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