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When you run your own company or a corporate business one should always give something back to the community. There are thousands of companies that donate to various organizations and small businesses should also consider giving back to their communities. Businesses that make donations and multiple contributions must keep track of the organizations they contribute to for tax purposes. Huge benefits are offered to businesses that help their communities in more ways than one as there are several perks one can expect from donating to charities for both parties. A primary benefit is the exposure to their community, as this makes people more aware of the services you offer and also exposes your company name in the community. Contributing to the community also provides the community with a good image of your company. A positive company image is extremely important as well as a solid reputation for contributing and giving back makes the company far more appealing to consumers that are searching for your type of products or services. When donating to a charity or event you will probably receive free entrance as a thank you and will also be advertising your company for free which is a great perk as advertising is costly. Charity donation and charitable donations build your company image and your reputation within the community and this is an important factor for your company’s success. Companies that remember the people that helped them create success and who have a reputation for donating to the community do far better as opposed to those that do not contribute to the community. However, before making donations always first research your options. There are many well worth charities and there are those that are fake charities, and there’re also those that are not reliable, meaning the money does not go through the right channels. Be sure to donate to legitimate charities, as this will ensure your donations are legal and that the beneficiaries are provided for. There are also charities that provide benefits as a token of appreciation; however the benefit value should not exceed stipulated limits, otherwise it will not qualify you for a tax rebate. Most companies have the full understanding of the effect donations have on their company; however, many companies do not understand the tax benefits. When donating to charity, you need to make the donation as tax effective as possible, no matter if it is shares, cash or property as this is also a way of demonstrating your support to your favourite cause or charity. Donations help to lower your annual tax return, although not every donation is treated the same by the ATO.
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