Everyone loves giving to charity; no one likes getting ripped off. Fortunately for entrepreneurs, there’s a way to approach charitable giving that both grows small businesses and ensures dollars spent actually help the people for whom they’re intended.
President Donald Trump’s proposed tax plan could reduce charitable giving in America by $13 billion per year. On the surface, his proposed doubling of the charitable donation deduction seems like it would increase activity. However, capping those donations at $200,000 per person and lowering the top income tax bracket from nearly 40 percent to roughly 35 percent will more than offset those gains.
According to Ryan Brennell, CEO and co-founder of Gladitood (a crowdfunding platform that helps nonprofits raise funds for their efforts), when individuals begin to wane on contributions, charities will look to businesses to fill the gaps. Not all of these charities will be legitimate. As each donation becomes more important, givers will need to be more cautious about choosing which organizations to support.
Develop your vetting process
Developing a thorough vetting process will transform your charity efforts into true philanthropy. While charity is well intentioned, it is often misguided. Philanthropy requires a focused plan dedicated to a specific cause. That plan doesn’t have to cover everything from the first dollar spent through the eradication of the issue – a simple strategy that includes vetting reputable nonprofits, making regular donations and evaluating their effectiveness is enough. These four tips will help you make the most of your contributions while leveraging your charitable efforts to grow your business:
1. Connect to your conscientious audience
Businesses today must do good to do well. It’s no longer enough to sell a product or service people need.
2. Include employees in your mission
Working for good through your company makes your employees feel like a part of something larger than themselves. Include employees in giving efforts and provide avenues for them to pursue their own philanthropic goals.
3. Establish your company as a community leader
To become a leader in both your local area and the charitable space as a whole, pick a problem that’s meaningful to your community and partner with other local businesses and nonprofits to work on a solution.
4. Identify marketing opportunities
While marketing value shouldn’t drive your charitable efforts, you shouldn’t ignore the potential benefits publicizing your good deeds can provide. Not only will it improve your company’s image, but it could also inspire other businesses to follow your example.
By following these steps to develop a philanthropic plan – and thoroughly vetting your potential partners – you can help charities accomplish their missions while growing your company and your brand. Reach out to nonprofits in your community to learn how you can start helping today.
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