September 27, 2010

The Business of Giving

By: Guest Blogger King Kosher

Most of the products that we use are made in other countries and our nation’s economy is now dependent on customer service. The service industry is America’s life-blood, and if you are a savvy small business owner, you can make this work wonders for your business by…. Donating!

“But how does donating to charity increase my ROI?”

Most charities are 501 (c) 3 corporations, this means that they are tax-exempt AND people who give to them receive tax deductions. But everyone knows that. Here’s what you may not know:

  • According to recent polls, 81% of shoppers say that price and quality being equal, they'd switch brands if the competing brand was associated with a good cause.
  • Donating to a non-profit with a “house-hold” name is a great way to advertise your company and make your adverting dollars tax-deductible, up to 50%!
  • Becoming a sponsor also gives you the chance to meet other sponsors and make new and possibly, priceless business contacts.
  • Many companies donate a percentage of their profits to charities. In-kind, the charities will promote their product &/or service to boost sales, increase their revenue and thus making money for their organization.
  • If you need a street team to promote your company just hire a non-profit! By donating money to a non-profit in exchange for the work of their members, you not only have a bunch of temporary employees but their services are tax deductible up to 50%, because paying them for whatever reason is the same is making a donation.

We all have passions, principles and beliefs. Serving other people not only makes us feel good, but it can also help sales. When people have more money they most often times feel more generous.

I guess the old saying is true; “It is better to give than to receive.”

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