Everybody loves doing a good deed. I don’t think any of you out there can think of a single time where you did something for someone for altruistic reasons and didn’t feel great about it after. Well what if I told you that altruism could also help your business?
As we talked about earlier this week with cross-promotions, a little bit of a partnership can actually end up being a huge boon to your business. For example, entertainment juggernaut WWE is, at the time of this writing, partnered with Susan G. Komen For The Cure, a breast cancer charity based out of Dallas, Texas. WWE runs adds for Susan G. Komen during their television programming, and is donating proceeds from specific pink colored merchandise (all based around popular performer and face of WWE John Cena). In addition, they have changed the colour of their ring ropes to white on the top and bottom, and pink (the traditional color for breast cancer awareness) in the middle.
On the outside, this looks like a major corporation with a huge reach trying to raise awareness for breast cancer. And that’s exactly what it is. But there’s far more to it than that.
As I’m sure we all know by now, charitable donations are tax deductible. Come income tax season, the right number of donations can result in huge tax breaks for any company. That includes WWE, a billion dollar corporation, and that includes your own small business as well. This can end up being a huge boon to your business, if done correctly. By working with local charities, donating time, materials, and yes, even some of your hard earned cash, and then claiming it all at the end of the year when tax time rolls around, you can end up with a huge tax break. You spend a little now, you get a lot back later. This is an excellent investment strategy, and unless you’re completely heartless (which I sincerely hope is not the case), will make you and your staff feel pretty good in the process.
It may seem counterproductive to give away some of your hard-earned PIE and the most precious commodity of all, time, to charity, but in the end, it can work to out hugely in your favour. The best advice I can give here, is to consult with an accountant (I assume you have one, unless your business is that you are an accountant, in which case, skip this step), and figure out if it’s the right thing to do for your business.
I honestly believe you should give to worthwhile charities in the first place, as there are people out there who need our help. But if you can turn it to your advantage a little down the line, well, why not? Quid pro quo. You give a little, you get a little. In this way you can make yourself (and your team) feel as if they’ve done some good in the world (because they have), and take another step towards maximizing your Personal Independent Earnings in the process.
