A study in 2015 indicated that nine out of ten customers expect companies to do more than make a profit, but also operate responsibly to address social and environmental issues. These customers said they would be more likely to buy from these businesses too. Yet, the last survey into New Zealand’s giving showed that business giving only made up 3% of our total giving dollars. Could integrating business giving into your company’s DNA provide a leading edge?
Benefits of business giving
From small Kiwi businesses to major corporations, business giving could play a supporting role in helping drive change, while providing a number of benefits to your business along the way:
Differentiating your business from competitors, enhancing your reputation and positivity towards your brand.
Boosting staff morale, attracting and retaining quality talent – with a growing millennial workforce who are aware of ethical considerations when making job choices, adding philanthropy to your mix might help you stand out.
Providing stories to create media content and to be used across your own marketing channels.
Receiving a tax deduction to reduce your end of year tax bill.
Making your community a better place to live!
Business Gift Accounts: an efficient way to give back, no matter what your size
For most businesses, starting up a formal company foundation for your corporate giving is beyond reach. Unless you are gifting millions of dollars each year, the set up and admin costs can be onerous. The Gift Trust provides businesses of any size with a cost-effective and meaningful solution to meet this need: a business gift account.
Our business Gift Accounts allow companies to invest money in an account dedicated to their charitable giving. It provides an easy way to use money to make a difference in your community, without the administrative burden and high costs of operating your own charitable foundation. A business can open an account with a minimum of $5,000.
Case Study: Rocket Lab
In 2017, Rocket Lab, the aerospace company with a launch site in Māhia on the East Coast, approached The Gift Trust to open a business Gift Account to administer their annual scholarship. This scholarship aims to give back to the local community surrounding their launch complex by providing a tertiary education scholarship for a deserving student for up to $20,000 of education costs over four years. The scholarship fosters continued excellence and innovation amongst New Zealand’s next generation of science, technology, and engineering leaders.
Rocket Lab set up a named scholarship fund with The Gift Trust and placed their scholarship funds into this. Rocket Lab staff screen scholarship applicants and select the recipient, while their Gift Account enables them to avoid the hassle of setting up a separate charitable entity to distribute the funds. The Gift Trust provides due diligence and administers the payments of the scholarship over four years. Rocket Lab receive a tax receipt so they can claim their tax rebate. You can read more about the first scholarship winner here.
Benefits of a Business Gift Account with The Gift Trust
Here are some of the reasons for considering starting a business gift account:
Less costly and time consuming than other forms of philanthropic giving (such as establishing a corporate foundation). A business Gift Account can be set up in less than a day! Set up an account in your company’s name and tailor it to meet your charitable goals.
Receive an immediate tax deduction. When your business makes donations into your business gift account through The Gift Trust, you receive immediate tax benefits, even if your funds are distributed at a later date.
Gain expert philanthropic assistance – our team who can help guide your giving strategy and provide research and due diligence when you want to distribute your funds.
Grow your funds. According to your directions, The Gift Trust can invest your funds so you can grow them, tax free, to give more to charitable causes.
Save administration time - The Gift Trust team handles all the administrative details of making donations from the account and conducts due diligence on all donations to make sure they are to valid charitable causes.
Keep your staff involved. Rather than having to elect trustees onto a formal foundation, a gift account can provide ways for your staff to be involved annually in the awarding of funds from your Gift Account. How you choose to set up your giving is incredibly flexible and over to you.
Receive donations from others. You can promote your Gift Account to others who may want to contribute funds to it - for example, staff or clients, making an even bigger impact with your giving.