It’s a fact that close to a third of annual charitable giving happens in December and that nearly 12% of all giving happens in the last three days of the year.
December is THE month for charitable giving. As we enter the height of the holiday season, now is the time to create a plan for how your business will give back.
Why should charitable giving be a priority as your organization or business prepares for the year’s end? Here are a few considerations as you plan to give charitably this holiday season.
Tax Benefits
It might seem like a self-serving motivation for giving back, but the truth is that tax deductions are a huge incentive for businesses to give charitably.
You may not know that not all donations to nonprofit organizations and charities are eligible as deductions. To claim a charitable deduction, you must give to a qualified charity. Handily, the IRS has an online search engine specifically for checking this.
If claiming a charitable deduction is crucial to you as you donate this year, make sure to research your nonprofit of choice to ensure they meet the IRS’ requirements to be a qualified charity. Meanwhile, make sure you read and understand the IRS’ specific rules concerning charitable deductions.
Don’t forget that qualified donations dated before the end of this year still count for a deduction, even if the funds aren’t scheduled to be released until the new year!
Research, Research, Research
It’s important that you do ample research on any organization you plan to support to ensure alignment with your business’ values.
We recommend researching further than just reading an organization’s mission statement or articles about its activity. It has, unfortunately, become much too easy these days for scammers to hide behind professional-looking marketing and websites. Protect your reputation and your financial contributions, and dig deep into the values and history of the nonprofits you would like to support.
There are specific organizations that can help you do just that. Websites like GiveWell and Charity Navigator keep track of and even rank nonprofits and charities based on factors like transparency and accountability.
Connecting Meaning To Your Work
It might sound cliche, but there is solid evidence to show that giving usually benefits the giver more than the recipient.
As Simon Sinek said, “When we help ourselves, we find moments of happiness. When we help others, we find lasting fulfillment.”
Don’t underestimate the value that charitable giving can give your business and the people who work for you. Giving back is a way for you and your employees to feel connected to something meaningful. This can enrich your work environment and give those who work for you another way to feel invested in your organization and the work you do.
It’s especially true when you choose to give back to organizations doing good work within your own community. When you’ve established a giving relationship with local charities and nonprofits, it can be enormously fulfilling to see your business’ contributions at work for good within your neighborhood.
Whether your business chooses to partner with a global nonprofit or a small, local charity this season, giving back is a value worth prioritizing.
