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Options abound for businesses to give to charity

Guest post by: Martin Cohn

Article Overview: Businesses - both large and small - offer charitable support to the many projects and programs that enrich the lives of all in their community and therefore play a vital philanthropic role in maintaining their region's quality of life. Here are seven ways in which your business can make a difference.

Options abound for businesses to give to charity

Businesses - both large and small - offer charitable support to the many projects and programs that enrich the lives of all in their community and therefore play a vital philanthropic role in maintaining their region's quality of life. In return, many businesses reap enormous benefits, such as enhanced image, better customer relations and higher employee morale.

We recognize that nonprofit organizations provide services that are vital to our community's well-being. Most of us support these organizations as individuals - and, increasingly, as employees of public-spirited companies.

Here are seven ways in which your business can make a difference:

1. Direct cash donation. A direct cash grant is the most common type of contribution. A company can deduct charitable grants from corporate taxes, up to 10 percent of pre-tax net profits.

2. Employee matching gifts. When an employee makes a donation to his or her favorite charity, the company matches that donation dollar for dollar, up to a specified limit per calendar year.

3. Dollars for doers. If your employees are active volunteers, one way to reward their efforts is through a "dollars for doers" program. This involves cash grants to organizations where employees volunteer a certain amount of time. For example, the company might make a $100 donation for every 40 hours of volunteer time.

4. Challenge grants. The company makes a grant on the condition that the recipient raise funds from other sources, usually within a certain period of time. For example, if a company gave a large grant, it might require that the recipient raise an equal amount from other sources.

There are several ways your company can support causes and organizations in addition to cash grants. Offering non-cash-giving options enables your company to better achieve its program goals and meet more community needs than can be met by cash giving alone.

5. In-kind contributions or donations. Donations of goods or services can expand your company's charitable giving. These contributions can consist of products, supplies, property or excess inventory. They can also include services such as printing, website development and use of meeting rooms. In-kind gifts are tax-deductible within certain limits.

6. Loaned talent. You may offer the time and expertise of employees, allowing them to help an organization on company time. Employee "loans" can be for single projects or on a regular, longer-term basis. This type of contribution provides nonprofits with expertise to which they would not ordinarily have access and increases your employees' leadership skills and understanding of community needs.

7. Employee engagement. There are many ways to engage employees in workplace giving opportunities, ranging from sponsoring company teams in fund-raising walks and runs to encouraging employees to volunteer in a company-sponsored initiative.

Today, companies of every size are participating in programs that contribute volunteers and dollars to the community's nonprofit organizations. These businesses understand that getting their philanthropic programs up and running is a good investment because it pays off in employees who take pride in their own ability to make a difference and in their company's role in making the community a better place to live.

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Article Tags: charitable support, corporate philanthropy



Related Forum Posts
Re: Ideas For Business - [quote="Stas Z":191lb7aa]Hi, I'm Lucy's partner for this project and I think I came up with an idea of how to attract people. Sure selling is one thing, but heres something that definitely attracts people and thats charity! Everywhere you look today, even in the subway their selling pizzas that cost much higher then what you could buy at the store, but mostly people buy them because they know their money would go to charity and that makes them feel good and makes them think that they have just made a difference. I still have not figured out the percentage but if we donate like 25% of the money earned to charity for example, more people would buy. Charity is used in business to help people out but as well as attract more customers to their business. I know this might sound like a stupid idea but hey you can never know for sure until you try your ideas. Thats what business is all about.[/quote:191lb7aa] Finding a charity that is important to the people you will market to is a big help. Its also good if you are personally enthusiastic about the charity. If you do a good size event with a charity, there are great ways to promote and lots of free promotion - but that would be a big event and you need the support of the charity. Shri
Re: OT: Shop For Museums - [quote="ChrisH":umtugzcr]So, if you were looking at the same or a similar item at two different places and one was giving a percentage to charity and the other wasn't - which one would you choose?? Chris[/quote:umtugzcr] If ALL things were equal, except one vendor was giving a charitable donation, then sure I'd support the socially responsible buisness... but otherwise, I'd buy from the one that was more convenient for myself (e.g. let's say the store that didn't give to charity was closer or had an easier website to navigate through).
Re: OT: Shop For Museums - [quote="Kevin":2odw2s8a]While I'm all in favor of supporting worthy causes... I'm not sure that donating a small portion of profits to a non-profit organization/charity would entice me to spend more money with a particular retailer/vendor. I mean, if a person wanted to make a difference, wouldn't it just be easier to give a direct donation?[/quote:2odw2s8a] There are a good number of places that use this strategy and they even offer the option on Ebay listings. That is a way for people to buy what they want and still be able to do something good for someone else. So, if you were looking at the same or a similar item at two different places and one was giving a percentage to charity and the other wasn't - which one would you choose?? Chris
Re: Ideas For Business - Hi, I'm Lucy's partner for this project and I think I came up with an idea of how to attract people. Sure selling is one thing, but heres something that definitely attracts people and thats charity! Everywhere you look today, even in the subway their selling pizzas that cost much higher then what you could buy at the store, but mostly people buy them because they know their money would go to charity and that makes them feel good and makes them think that they have just made a difference. I still have not figured out the percentage but if we donate like 25% of the money earned to charity for example, more people would buy. Charity is used in business to help people out but as well as attract more customers to their business. I know this might sound like a stupid idea but hey you can never know for sure until you try your ideas. Thats what business is all about.
Actors turned Entrepreneurs - If Paul Newman wins, you should also look at Jackie Chan- another actor who uses his name for business. Jackie donates his profits from his non-acting businesses to charity.


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