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Supporting non-profits and charities can not only do a world of good to your donations recipients, but also benefit your online business.

The fact is that implementing a donation program into your business model contributes to revenue increase, customer attraction and a community build-up. Not to mention the tax deduction bonus…

According to the research from Cone Cause Evolution Study:

  • 85% of consumers have a more positive image of a product or company when it supports a charity they care about.
  • 83% of Americans wish more of products and services they use would support charities.
  • 80% of Americans are likely to switch brands (equal in quality and price), to the one that supports a charity.

choosing-between-brands

Today 94% of consumers think that businesses should do more than just make money. They should give back.

Here are five major ways your ecommerce business can benefit by giving back to charitable causes.

#1. Donations increase sales

According to the recent study in the Journal of Consumer Research, social consciousness of a company leads consumers to believe products are of better quality. So doing good can indeed translate into doing well.

products-are-better-when-donate

Companies like Amazon and Ebay use checkout donations to reduce cart abandonment and increase sales. Buyers spend 26% more and retailers have 29% more sales when it comes to the power of giving back. What’s more, by supporting non-profits Ebay retailers have reduced customer churn rate by 67%.

ebay-donations

#2. Charitable activities enhance customer loyalty

While supporting global or local charities, you can boost customer loyalty at the same time. According to the study by Cone Communication and Echo Research:

  • Nearly 47% of consumers worldwide report they will be more loyal to the company that supports a social or environmental issue close to their hearts.
  • 53% of consumers admit they would be more likely to recommend the company’s products or services to others.

It’s important to note that your charity efforts should resonate with your target audience. By supporting the causes your consumers care about you gain their trust, attention and respect.

For example, if you have environment-friendly customers – offer a donation of every customer’s sale to Greenpeace. Support causes that are important in the communities you do a business. It’s a sure-fire way to boost customer loyalty.

choosing-issues-to-support

#3. Donations is a great tool to build loyal community and motivate your team

Giving back improves a brand’s image in the community. It helps people to become more aware of your products/services and build a good image in the community.

Giving back to a cause is a great way to build emotional connections with your customers. 66% of consumers agreed that they would choose a company that supports a charity over the one that doesn’t. So giving back enhances brand image and value and helps to differentiate the company from others in your market sector.

Do you have any challenges with productivity in your company? A variety of studies show that when employees positively perceive their companies, they are more productive, motivated and committed to the company’s overall goals. The numbers tell the story best: 90% of employees who work for a company that supports charities are proud of their employer. (Roper/Starch Worldwide, 1999)

#4. Donating to charities boost your brand reputation

Giving back is a great way to get your name out in the community and improve your brand’s visibility. Companies associated with philanthropic views reinforce positive brand awareness and enhance reputation within the community and. And here’s why:

  • Supporting charities is the most trusted activity that makes a huge difference in how your business is viewed.
  • Consumers view responsible brands as trustworthy and ethical, and they’re more willing to give money to the companies they trust.
  • Giving back helps to define the company’s identity and differ from the competition.

When a business donates to a worthy cause, its image is enhanced in the eyes of consumers, partners and community. Supporting charities signals of a brand’s commitment, involvement and concern towards causes.

#5. Donations are tax deductible

When you donate to non-profit or other charitable organizations, the amount you donate is tax deductible. Such expenses can lower your tax bill and reduce taxable income.

However, you must follow several steps in order to be allowed to deduct your charitable contributions:

  • Donate to a qualified organization;
  • Donate cash or property;
  • Itemize tax deductions in order to claim any charity;
  • Maintain a bank record or any other document from the organization containing the name of an organization, the date and the amount of contribution.

Also, not only the money you donate is tax deductible. Event fees, parking costs, the amounts you spend on travel that are related to charitable giving can lower your tax bill.

How to support charities with your ecommerce store

Donating is a great way for a business to give back to the community and benefit itself, no matter what ecommerce platform is used. If you want to support charities or other non-profits and allow customers to donate from your store, you could implement a donation program. Here’re the most popular solutions for the various ecommerce platforms:

Magento – Donations Ultimate

Donations Ultimate Magento Extension

Shopify – Checkout Donations

checkout-donations

WooCommerce – Donation Plugin

woocommerce

OpenCart – Donations Module

opencart

 

Bottom Line:

Today consumers have higher expectation about companies. They want brands start having more real impact on society. Giving back is one of the most powerful tools you can use to gain customer loyalty, increase brand awareness and boost reputation within a community.

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