What Your Business Donation Does
So, you own or manage a business and you’ve decided to make a tax-deductible donation just in time for the end of financial year – GREAT! It will be more rewarding than you ever expected, we promise.
We understand that many business owners initially consider donating due to positive outcomes for them, such as positive tax benefits and building a reputation in their local market. And that’s fine. But by the end of the process, most donors realise the reach of their contribution and how it is much more powerful than previously considered.
When a company first decides they will commit to a donation, they often have difficulty deciding on an amount they should pledge to the charity they’ve selected.
It must be made clear that there is no right and wrong amount, and donations of all sizes are gratefully accepted by all non-profit organisations. However, there are a few ways to assist your decision making in this part of the process.
Some companies allocate a percentage of sales or revenue to charities, foundations, and partners each year. This can work well for established organisations but can prove a difficult method for first time donors and small or new businesses.
Alternatively, facilitating your own fundraising effort is a great way to deliver a donation while not impacting your own business profits. This is a fantastic way to get staff, clients, customers and the community behind your cause, generating positive exposure and more money towards the charity.
The third approach involves understanding the impact a donation can have on the organisation you are helping, and the people who they operate to help. This is more rewarding than simply working out exactly what you can and can’t afford to give, signing off on the donation and forgetting about it.
To help provide some perspective, we’ve included this donation infographic to help clarify exactly where donations go, how it specifically helps Cottage by the Sea operate on a daily basis, and the positive effects a donation can have on children who come to Cottage by the Sea.
As displayed, even a donation of $580 can fund an entire 5 day Take a Break camp for a disadvantaged child. For many businesses, this amount of money would not be of major significance, but when put to work by a charity like ours, it has the power to positively influence a young person’s outlook on life. It allows us to deliver our mission to give children the chance to live a happy and healthy childhood.
At the end of the day, we encourage people to take a deeper look at why their business should donate.
Yes, there are tax benefits.
Yes, you can increase your business reputation and align your values with a great local charity.
The overarching factor, however, is the much-needed assistance you can provide and the smiles that eventuate.
The short-term benefits will likely suit your business and the charity you support, but the long-term benefits have positive consequences that span far beyond the act of giving a sum of money to those less fortunate.