Many businesses look for ways to give back to their communities,and as we enter 2021 this is more important than ever, as a drop in vital donations due to the pandemic has meant some charities are struggling to continue their valuable work.
As well as being a simple act of kindness, deciding to donate to a charity can also be beneficial for small businesses.
Corporate Social Responsibility (CSR) is a company’s sense of responsibility towards the community and environment in which it operates. But why should your business embrace CSR, and what benefits could it bring to your company?
It can be a motivating factor
Some companies donate a proportion of their profits to a charity. If your business supports a charity where £20 pays for an essential operation for a third world child, for example, it can encourage the team to work hard to ensure that as many children as possible are provided with that operation.
It helps to cut costs
Implementing a policy of re-using scrap paper or ensuring that computers are shut down fully at the end of the day, will have a small but positive impact on the environment, and there will also be cost savings to the business.
Stand out from the competition
Supporting a company that donates to charity can make customers feel good, so make sure to find one that resonates with your customer base but don’t forget to look for one that also fits with your own values. For example, if you are a small community business, it could make sense to support a local charity.
For a potential customer, helping a specific charity as a result of doing business with you may be the deciding factor between you and a competitor. It positions your company as a caring brand that goes out of its way to help others, which demonstrates how you would also treat your customers. And that’s appealing.
It can improve customer engagement
Charitable donations give you an additional reason to get in touch with your customers and your wider database. Keeping your customers up to date with your company’s fundraising activity, perhaps asking for sponsorship for your latest charity initiative, or inviting them to a charity event, all helps to maintain interaction and improve customer loyalty.
Boost team morale
CSR initiatives are a great way of improving team morale and motivating your employees. Encouraging staff to be involved with the company, improving relationships and doing something fun outside of the day-to-day activities of the business is important for your company culture.
Tax benefits for your business
Most charitable donations are eligible for tax relief, which can be claimed by deducting the value of your donation from your total business profits before you pay tax. There are different ways to claim this relief based on the type of donation your make and how you make it, so it’s worth talking to your accountant about your plans and whether your financial donation will be eligible for tax relief.
Just a few reasons to get started with some charitable work! Not only could it help you to reduce costs and improve staff morale, but also you’ll know you’re doing something good for the community, all of which will give you that sense that a good business isn’t just about the bottom line.
Good luck! Let us know what you’ve got going on in your businesses!
As part of our corporate social responsibility (CSR) programme, Blue Rocket Accounting supports the incredible service the team at Demelza Hospice Care for Children provide from the hospice in Sittingbourne, Kent. We are proud to be able to contribute in a small way to their amazing work, and will be hosting several fundraising events in 2021 (more detail to follow):
Monday 2nd August – Golf day
Saturday 20th November - Teddy bears’ ball
If you’re a business owner and are looking into setting up a CSR programme or considering making a charitable donation, get in touch with us to find out what you need to do in order to deduct the donation from your total taxable income. Call us on 01322 555 442 or email firstname.lastname@example.org for a no-obligation chat.
Kent based accountants working with companies in all sectors including construction, cleaning, retail, consultancy, manufacturing and hospitality to help them expand their horizons and reach for the stars.