Most business owners never think twice about helping people who are less fortunate than others in their community for raising funds and donations. This is the reason why they are willing to tie-up with trustworthy philanthropic organizations for the cause. It is their way of fulfilling the wish to uplift the economically disadvantaged sections of society. In the process, they are able to strengthen the relationship they maintain with their stakeholders in the market. They can even avail attractive tax deductions for the donations they make to these charitable organizations. Unfortunately, many of them face a dilemma when choosing the right cause to fund and to promote their business interests.
Mark Strome – What do businesses need to consider when working with charities
Mark Strome is a prominent American businessman and philanthropist in the USA. He has a wealth of knowledge and experience in the finance sector spanning two decades. His area of expertise is in investment management, a securities portfolio, and hedge funds. In fact, numerous experts consider him to be a notable pioneer of the hedge fund market in the nation. His philanthropic organization, The Strome Family Foundation, supports community programs promoting education, arts, and groundbreaking medical research.
Business and charity – Both should go hand in hand for success
He says donating to charity enables business owners to earn the goodwill of the people within their communities. This helps them to improve their image in the market. When choosing the right philanthropic organization to work with, businesses should consider three factors:
1. Ensure the mission statements are identical
Business owners should first review their mission statement, which specifies their core values and activities. The charitable entity should also share the same ideals as those of the business owners. Only then it becomes easier for them to work with the charitable organization towards achieving a common goal.
2. Check the registration of the philanthropic organization
The philanthropic organization which the business owners opt to work with should have registration certificates. It should fulfill all the criteria which tax authorities specify to declare a charitable organization as tax-exempt. Moreover, it should be able to produce the necessary paperwork to prove the same on demand. Only then can the business avail deductions on all its donations made to the organization.
All philanthropic organizations need to maintain proper financial records of the money they receive from donors. These charities should also produce a proof on how they spend these donations in conducting their activities. Both the business and the charitable organization they associate with should have common goals and an action plan to achieve the same.
Mark Strome concludes by saying business owners can boost their image in the market by working with philanthropic organizations on social causes in the community. However, the business needs to conduct extensive research before it decides to take up any charitable cause. Moreover, the goals of the charity should complement the mission statement of the business. In this way, both concerns can work together and bring a positive difference to the community with success!