From those to whom much is given, much is expected.
Philanthropic giving is an outstanding way of expressing your appreciation to the customer base providing the support your business needs to thrive and grow.
What’s more, according to the Journal of Consumer Research demonstrating social consciousness gives your customers the impression your products are of exceptional quality.
These are just two of the ways philanthropy and ecommerce can be good for one another. Here are some others.
In this article:
Incites Customer Loyalty
If your customers know a percentage of every dollar they spend with you goes to support a charity in which they believe, they’re more likely to buy from you than a competitor who does not—even if your price is higher.
Strategic giving also tells shoppers your values align with theirs, which again leads to more customer loyalty.
This can save you from having to participate in a race to the bottom, should a price war break out in your category.
Brand Reputation Boost
Even if people don’t shop with you, they’ll respect your brand when you’re known for giving.
In addition to differentiating your business from the others in your sector, you’ll be perceived as more trustworthy and your ethics are less likely to be called into question.
The logic goes, you must be a good company if you’re giving up some of your profit to help people who are less fortunate than you.
Encourage Direct Donations
In addition to giving on your own, you can encourage visitors to your site to donate directly to the charity through your web portal.
Along with your primary site, you can establish one specifically for giving.
The design can be had at no charge when you take advantage of the offerings of one of the many free ecommerce website theme providers out there—like Shopify for example.
Reduced Tax Liability
Donations to qualified organizations have the potential to reduce your taxable income, thereby lowering your tax bill. Event fees and parking costs, as well the money spent on travel related to charitable giving all qualify.
However, you have to make sure the organization you choose qualifies as a charitable organization by the IRS.
You have to donate either cash or property. You must also itemize your taxes and get a record of the contribution from the charitable entity. The documentation provided should always state the amount and date of the contribution.
People feel good about working for companies with socially conscious philosophies that actually give.
People employed by businesses that support charities are also more proud of where they work.
They have also been proven to be more productive, more highly motivated and more committed to working toward the success of the organization.
Promotes Year-Round Giving
Just about every company out there seems to suddenly develop “a heart” during the holiday season. Far from panning such organizations, we laud them for any effort they put forth.
It remains to be said companies who walk the talk all year long tend to benefit more. It’s just seen as a more sincere effort.
Far from an attempt to chide those who show up during the holidays, this is more an effort to commend those who know a hungry child needs to eat every day of the year—in addition to the winter holidays.
Philanthropy and ecommerce can absolutely work together to improve the way people live. It also makes it easier for consumers to engage in charitable acts, even as they satisfy their needs and wants in the marketplace.
If you’ve yet to engage in benevolent giving, now is as good a time as any to start.