Smaller businesses are able to enhance their bottom line courtesy of charitable donations. But only 20 per cent are actually giving regularly. Here’s why as a business, you should be seriously considering donating a proportion of your turnover to charity.
Research has revealed that the more a smaller business donates to charity, the better its business performance.
On average, small to medium sized enterprises give 1.8 per cent of their turnover to charity. That equates to £32,000 per year. Businesses that donate more than 0.5 per cent of their turnover are 20 per cent more likely to see a boost in profits. They are also twice as likely to enjoy a lift in reputation, and 50 per cent more likely to see and improvement in staff retention and recruitment.
In general, 67 per cent of businesses who regularly make charitable donations reported a positive impact on profitability. The trouble is, a lot of businesses are not aware of the advantages of charitable giving.
The research has been released on the back of the launch of a new giving platform called Work for Good. The platform makes it easier for businesses to make donations to good causes in such a way that proves beneficial to both the charity and the business.
These days there is a much increased expectation from customers to know that the companies they choose to do business with are actively making a difference and showing that they are socially responsible and community minded.
Work for Good empowers businesses to ‘give to grow’. 37 per cent of small to medium sized businesses claim that charitable giving has assisted them in attracting new clients.
Work for Good has been created to build giving into a day to day working routine. The platform makes it easy to give in whatever way suits a business best. All the legal and administrative burden is taken care of and Work for Good helps givers shout about the good they are doing. This helps businesses connect with clients, inspire their workforce and strengthen their brand. As a member you get to display the Work for Good mark which instantly demonstrates your values.
If you are unsure as to how charitable giving could benefit your business in any sense, including from a tax or reputation perspective, why not discuss it with your local bookkeepers?