Why is the practice of donating a portion of the purchase to the charity of the shopper’s choice an increasingly popular idea? I think it’s popular because it adds value to the transaction. Here are a few reasons why charitable involvement is profitable for a business:
- Charitable donations at purchase increase the connection with the customer because they are getting the item or service plus a good feeling about giving to something near to their heart.
- Charitable community involvement with a local organization encourages your neighbors to be involved with your business on a personal level.
- Charitable causes your company supports help people who also support that cause identify with your organization.
- Charitable giving can be a tax deduction within IRS guidelines.
- Charitable activity increases potential online cues for search engines to pick up — especially if you invite others to join you in social media campaigns.
Charitable Involvement Isn’t Primarily About Monetary Profit
Being involved with a charity is good for a lot of reasons and any monetary profit from more sales or tax write-offs is only one reason. The big value of charitable involvement for a business is the network strengthening that happens as a result. People don’t function in isolation, we function in community. Being involved with charity is an acknowledgement of that community.
When a business is involved with charitable efforts it humanizes your enterprise and makes folks realize that your company is people, just like they are. People connect to people, and trust is built. Upon that trust, conversions naturally follow. Every connection you can make with your audience is strengthening that potential even when it seems like you are giving money away through a donation to a chosen charity.