How to Give Back During the Holidays as a Small Business
Giving back to our community is something we are BIG about here at Tatum Accounting. And now that we are in the prime holiday months, there is no better time to focus your company’s extra time on bettering society.
Small business owners may find it difficult to figure out just how to give back, though. Frequent questions I get:
How do you find an organization you’re passionate about?
What are other ways to give back besides a cash donation?
Does donating to charity provide benefits to my small business?
This article will answer all of those questions and provide you with a thorough guide on how to give back during the holidays as a small business.
The perks of giving back beyond the warm & fuzzies
Giving back to your community during the holidays is a sure fire way of making your heart happy, but it has a ton of other benefits beyond just feeling good. The Mayo Clinic reports that people who volunteer regularly are physically healthier, less stressed, and more fulfilled than the average.
It stands to reason that a business that gives back is healthier in a lot of ways, too! Here are a few perks to charity work that benefit businesses.
Community networking
When you are involved in charity work, you are involved in your community. And your community are your customers - even when you’re fully virtual! Spending time giving back can help your small business grow its network. It also opens networking opportunities between other businesses in your area. Forming partnerships with other small business owners can lead to some very cool growth prospects.
Tax deductions
Our budgeters will love this one: business donations to charity can be tax deductible! Donations of cash and items can be used to reduce your small business’s income tax obligation. As with all tax things, there are many rules and regulations about what you can and cannot deduct. Here’s a brief rundown:
The charity you donate to must be a 501(c)(3) organization to qualify for the tax deduction.
Cash contributions, donated items or property, and travel expenses from working at a charity can all be tax deductible. Donations to political organizations, for-profit schools, and individuals are not tax deductible.
If you donate to public charities, private operating foundations, and certain foundations that distribute donations and contributions to those types of organizations, you can deduct up to 50% of your adjusted gross income.
If you donate to other organizations that do not fit the three categories above, you can deduct up to 30% of your adjusted gross income.
Goodwill
When your small business donates its time, money, products, or services, you not only uplift your community but your reputation in it. Customers love to see the businesses they patronize support social causes. And there is no shortage of social causes in need during the holiday season. Doing good brings good back to your business!
How to find your passion niche
You are amped up to help for this upcoming holiday season, but where do you put your efforts? Picking a reputable charity is important, but so is finding that niche area that you’re passionate about. Volunteering for something that is near and dear to your heart will only improve the benefits you see from the work.
I’ll use myself as an example for this one. When I’m not helping small businesses and entrepreneurs build success, I’m immersed in all things animals. I really loved caring for animals and have found that I could bring that passion outside of my home to benefit my community. I currently serve as a board member for the Suffolk Humane Society where I work to expand their foster program and community outreach events.
To figure out what your passion niche is, ask yourself these questions:
What tugs on your heart strings?
Is there a particular cause that’s personal to you?
What do you like to do in your free time that may be helpful to your community?
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Ways to give back other than cash donations
Cash donations are a fantastic way to give back during the holidays as a small business. All charities are in need of extra funds. But there are a lot of other ways you can serve your local community that don’t involve writing a check.
Volunteering
Your time is valuable and the organizations you give it to benefit immensely from this gift. If you have a few employees, pick a workday and have you and your employees volunteer at a charity for the day. Soup kitchens and food pantries always need an extra hand around the big holidays like Thanksgiving and Christmas. And looping in your employees boosts team morale!
Food & toy drives
Stocking shelves at charities during the holidays is crucial as many folks need a little extra help for presents and holiday meals. Host a food, pet, or toy drive at your business! Ask your customers, employees, and contacts to donate nonperishable food, goods, and kid’s toys, then donate those items to a local charity.
Inventory donation
If you have a product-based business, donating some of your inventory is an easy way to give back during the holidays as a small business. You can donate a portion of the proceeds of your inventory or donate the actual items themselves. If you sell baked goods, donate to a community food pantry. If you sell ebooks, think about donating some titles to your local library. Service-based businesses can do this, too! Offer your coaching, graphic design, or whatever service you may provide to those in need.
Get out there and make a difference
Supporting your community through donations and volunteering doesn’t have to be difficult or time consuming. Find your passion niche and get started! I hope this guide on how to give back during the holidays as a small business has been as helpful as you plan to be this winter.
