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Nibbled to Death by Ducks:
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As the owner of a small business, you will be surprised to discover how often you are solicited by local charities to make a contribution to their cause. Rarely a week will go by without a visit from some organization or other, hoping you will 'give back to your community' by supporting them in some way. As a new business owner, you will typically give something to all of these solicitors. Only when you look back over a period of a year will it become clear just how much these demands have taken out of your profits. How Scrooge-like, I hear you say. Well, that depends. If your small business is so profitable that you are in need of tax deductions, then be as generous as your inclination would lead you. If, like most small businesses, you are operating from payroll to payroll, you are going to have to be a little more judicious in selecting which charities you give to, and more importantly, what you give. You can leverage charitable donations into advertising if you go about it correctly. Many charities sell ads in a program of some sort. This can be 'money down the drain' or a very long-running ad, depending on the venue. Ask yourself how likely it is that the program will be kept. A craft-fair program is probably going to be going into the trash before the day is over. A Celtic festival or Renfair program, on the other hand, or a play program from a local theater group, might be kept forever in some attendees' memento boxes. And of course high school yearbooks are kept forever. Make sure your ad doesn't just say 'Our Store Congratulates Seniors' though. Include a color photo of your most beautiful piece of merchandise, and make sure your street address and website are included at the bottom of the page. Charity auctions are also good candidates for your donation. It is tempting to donate one of your more characteristic pieces of merchandise, but don't. Offer instead a gift certificate to your business. It may sound unimaginative, but think - a particular item will have appeal to some but not others who might be interested in other items in your inventory. And unless you are situated in a very small town, there will always be people who haven't yet learned of your establishment. A gift certificate purchased for less than cover price, no doubt, will only cost you the wholesale value of the merchandise the bearer redeems with it, and might garner you a new customer. It's not crass and self-serving to try to maximize your visibility, even when donating to charity. The 'anonymous donation' is for the very, very rich. Work to put yourself in that category, and in the meantime, donate judiciously. |
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