There was a time when philanthropy consisted of individuals and small congregations of churches and religious organizations. As society continued to develop and grow, it became clear that this was no longer sufficient to help those in need. Then the idea of corporations stepped in as a solution to some of these problems – but that is not without its challenges. Here is some information on why corporations are vital for philanthropy, as well as what they offer.
Why Corporations are Vital for Philanthropy
It’s part of a Company’s Mission
At its heart, a corporation has a mission that it wishes to accomplish. Its mission might be to “be the best in class,” “produce the best quality product,” or “be the best at what we do.” These types of missions can benefit a corporation by creating a culture that encourages employees to fulfill their purpose and hopefully makes it easier for them to find solutions when problems arise.
Whereas charities rely on money, corporations rely on people. This means that its workers will often spend their own time working for the company and then donate their time or resources to charity. The money they give to charity is not necessarily coming out of the corporation’s profits; it is generally coming out of the donations of its employees. This allows individuals to find a fulfilling position in a company while also being able to help others.
It Helps the Company’s Reputation
Companies are interested in creating an image of themselves. This might be as simple as “we make good products,” or it might be as complex as “we are an environmentally sustainable organization.” Participating in philanthropy shows customers, potential employees, and other stakeholders that this image is true.
It Helps the Company’s Bottom Line
Being involved with philanthropy can financially help a company as well. People like seeing that the company is helping the community. Donating money to good causes can build trust and loyalty and encourage people to buy their products. It also may give them access to new business opportunities.
There are Tax Benefits
Companies that regularly donate to qualified charities can benefit by receiving a tax deduction for their donations. For example, if a company donates $5,000 to charity, it will receive a tax deduction of $5,000. The money that the company receives back is essentially free money.
Overall, there are many benefits to having a company help with philanthropy. It can create a happier, more productive workforce that feels good about what they are doing. Plus, it can help the company’s image and bottom line. It is not an easy task to manage, but the results are well worth the effort.