(from L-R: Penny Fox, Joe Stapleton, Sue Grant, Kimberly Vig, Sinan Kanatsiz)
There are many reasons why people start a business – some individuals are too unconventional for a corporate environment, some are simply not nine to five people and some have a burning desire to create something new and fresh. For whatever reason, one similar trait is the desire and need to make money from their enterprise. Spending money becomes a conservative habit, especially for new startups and many small business owners, especially if money is tight and profits elusive. However, when you start giving money through your business, you’ll find a variety of benefits that not only help make real change but could help your overall business growth.
The goodwill of a business is an intangible asset but nonetheless valuable. By choosing to contribute to a local charity or identifiable group in need, the business can establish a connection with and support of the community. By showing you, as a business owner, care, you are also saying you’re not going anywhere and you’re in it for the long haul.
Builds a reputation
Businesses who regularly involve themselves with charitable giving rather than a one-time act or annual holiday contribution are showing their potential customers what they are about. Customers will be more curious about a business that has a reputation for giving, which can lead to increased foot traffic or inquiries and buzz about your business. Word of mouth advertising is still a great way to spread the word. Absent some existing loyalty to a competitor, this can be the difference in why a customer throws business your way.
What many business owners discover when they delve into charitable giving is the variety of others who are involved in the process. It is possible to build alliances with other organizations and network with individuals who have the potential to become partners in future transactions or enterprises.
Giving is valuable in and of itself, but there is no reason not to take advantage of the tax break you may receive. Recent changes have occurred in the laws regarding the deductions available for charitable giving, and business owners should consult a competent tax professional to fully understand how this may work for their particular situation.
According to the 2010 Cone Cause Evolution Study, which explored consumer attitudes and expectations of company support for social and environmental issues, 85% of American consumers have a more positive view of a company when it supports a cause they care about. At Spinnaker Investment Group, we understand the imperatives of bottom-line business numbers but also feel strongly that giving back, where possible, is our duty. As a business owner, you can know you are doing the right thing just by charitable giving and also feel good about increasing the long term viability of your company.
The information contained herein is based on internal research derived from various sources and does not purport to be statements of all material facts relating to the securities mentioned. The information contained herein, while not guaranteed as to the accuracy or completeness, has been obtained from sources we believe to be reliable. Opinions expressed herein are subject to change without notice.