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The holiday season isn't just about festivities; it's also a time for businesses to channel their goodwill towards the community they serve. As a small business owner, your efforts to give back can foster connections, build trust, and create a positive brand image.
Supporting your community is a win-win: it's great for society and strengthens your brand identity. Here are ways your business can make a positive difference during this special time.
Key takeaways
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Spread holiday cheer by donating products, services, sales proceeds, or employee volunteer time to local causes.
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Support meaningful causes close to your heart to build customer and community loyalty.
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Leverage your skills. If you run a service business (e.g., accounting or marketing), donate your expertise to a charity or social enterprise.
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Giving back creates goodwill, inspires others, and is an integral part of a modern, successful business culture.
Actionable ways to give back
The holiday season provides many opportunities for your business to make a positive impact through charitable initiatives.
Donate money, products, services, or sales proceeds
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Sponsor a community or a charity: This can include donating money, goods, or services. Sponsoring a local charity shows direct support for your community and helps those in need.
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Donate products or sales: This provides direct relief. For instance, a coffee shop could donate hot drinks to a homeless shelter, or an online retailer could pledge a portion of its holiday sales to a local food bank.
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Hold a fundraiser event: Hosting a fundraiser can be effective. Consider a seasonal festival or a simple collection drive. Not only does this provide charitable donations, but it can also boost brand awareness and build stronger relationships with customers.
Empowering employee giving and volunteering
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Offer your time and expertise free of charge: This is essential for service-based businesses. Leverage your specific skillset—such as offering pro-bono accounting, web design, or marketing help—to a local non-profit that needs it.
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Volunteer for a good cause: Establishing an ‘office volunteer day’ is an inspiring way to unify your employees and channel their collective strength towards a meaningful charity project. Research estimates that employee volunteering leads to productivity gains worth at least £4.6 billion annually in the UK (Royal Voluntary Service, 2024).
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Collect donations: Organise a campaign to collect toys, food, or warm clothes. Decide on the duration and the types of donations you will accept to ensure a successful drive.
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Sponsor a family: This is a truly personal opportunity to sponsor a low-income family's Christmas by purchasing presents from their wishlist. Doing this with your employees can be particularly special as you work together to make the holidays memorable.
Identifying and vetting charities: trust and alignment
Finding the right charity can seem overwhelming, especially since the Charity Commission for England and Wales has over 170,503 charities on its register.
How to find a charity that aligns with your mission
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Reflect on your causes: Consider your personal and company values. What are you passionate about? Ask your employees if they've been personally affected by a cause they would like to support.
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Do your research: Once you've narrowed down your options, you must verify the organisation. You can check a charity's financial health, trustees, and official registration details directly on the official Charity Commission register via the GOV.UK website.
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Think beyond cash: If you can't afford a large monetary donation, you can still support a cause. Volunteering, holding a bake sale, or offering to help with leafleting are all valuable forms of support.
Leveraging your team's skills for good
When deciding what type of volunteering work suits your skillset, consider both the time commitment and the skill level needed.
Find local opportunities: Use UK platforms like Doit.life or Reach Volunteering to find local volunteer opportunities that align with your team's skills, interests, and availability.
Financial and digital giving
Making a corporate donation is straightforward, but knowing the rules regarding tax relief and digital giving can maximise your impact.
Maximising impact: understanding corporation tax relief
As a UK business, when you donate to a registered charity, you can deduct the value of the donation from your company's total profits before paying Corporation Tax.
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How it works: To claim tax relief, you simply record the donation in your company's accounts. This deduction lowers the total taxable profit of your business.
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Enabling donations on your website: You can integrate donation features on your website. Giving visitors the opportunity to make a difference helps build trust and strengthens customer relationships. Look for platform options that let you clearly customise the donation form.
We are not financial or tax advisors. You should always consult a qualified accountant or tax professional to ensure you correctly claim Corporation Tax relief and understand your business’s specific tax obligations.
Reward your employees
The holiday season is a perfect time to reward your employees for their hard work and charitable contributions.
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Show appreciation: Giving bonuses, awarding extra holiday days, or providing gift cards shows your employees you care about them and appreciate their efforts. This helps build morale and loyalty.
Quick check: your donation checklist
To ensure your efforts have the maximum impact and are correctly recorded, ask yourself these three questions:
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Vetted? Have you checked the charity's registration and financial details using the official Charity Commission register?
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Recorded? Are you correctly recording the donation in your company accounts to claim Corporation Tax relief?
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Visible? Have you shared your volunteer efforts or fundraising goals with your customers and employees?
Why giving back is important
Investing time and resources in your community is a powerful long-term strategy that builds brand resilience.
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Demonstrate care: Show that your business values more than just profit by investing time and resources in community welfare.
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Build trust and loyalty: By standing for social causes, you build trust and loyalty among consumers, aligning with their values and preferences.
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Forge community connections: Engage with local organisations to foster cooperation and understanding within the community, attracting new customers and employees.
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Establish brand identity: Giving back becomes an integral part of your brand identity, setting your business apart and creating a positive, memorable impact.
The bottom line
The holiday season provides a special opportunity for businesses to give back to their community and make a positive impact. By supporting local causes, leveraging your unique skills, and showing genuine appreciation for both your employees and your community, you can boost brand image and lay the foundation for sustainable success.
