The season of giving is nearly here - and what better way to show your appreciation than with a thoughtful gift?
Gift-giving is a great way to strengthen your professional relationships whether it is with your employees, clients, or partners. But it has to be done right, otherwise, you could be having some awkward conversations come the new year.
In this blog post we’ll help you understand what makes a good corporate gift, why they’re important as well as the legal things you need to know about gift giving. We’ll also take a look at some of the best gift ideas to suit any recipient and budget.
Why are corporate gifts important?
Gift-giving is one of the best ways to show appreciation. Whether you’re rewarding an employee for their hard work, a client for their loyalty, or a vendor for helping you through a busy period.
Choosing the right corporate gift can be a challenge. It should be a thoughtful token of appreciation, but also general enough to remain professional and not cause offense.
Whether internally or externally gifted, it’s crucial to always consider your audience. You want to ensure that whoever receives it has a smile on their face.
Benefits of corporate gifting
There are a few key benefits to corporate gifting. But the specifics will depend on who you’re sending the gift to.
Most companies will send gifts around the holiday season, particularly to their employees, vendors and clients. However, each is done for a different purpose such as:
- To build brand awareness
- Reward loyal partnerships
- Strengthen trust between parties
- Promote your products and services.
Legal corporate gifting rules
Giving a gift should be easy, right? Well, that’s not always the case - not in the corporate world, anyway.. Some industries have strict rules when it comes to corporate gifting.
The business world is increasingly concerned with ethics and transparency. So, many businesses have gift-giving policies to avoid any potential claims of bribery, favoritism or conflicts of interest.
Ethics are most consider in these industries:
- Financial services
- Public sector
- Tech
- Pharmaceuticals
- Non-profit organizations
- News and media
But don’t let these rules put you off. Corporate gifting still has a range of benefits, just make sure you review ethics and bribery beforehand. You can do this by speaking directly to the company or any key contacts that you have relationships with. Most employees should be briefed by their HR and legal team on what gifting is and isn’t acceptable.
Are corporate gifts tax deductible?
There are a few tax implications that you need to consider when giving gifts to clients. So, before you go crazy with your generous holiday spirit, make sure you avoid any costly mistakes.
The IRS states that if a corporate gift is given during the course of trade or business then the gift may qualify for a tax deduction. But there are some limitations.
US tax law states that you can deduct $25 for business gifts during the tax year. There is no limit to how many people can receive a gift but there is a limit of $25 deductible per individual.
The giving and receiving of promotional gifts, like pens and t-shirts, is not deductible as it falls under advertising expenses. Items that aren’t tax deductible include:
- Gifts with values less than $4
- Items with an organization's name permanently imprinted on them
- Items identical to those that the organization distributes or sells.
Common examples of these include pens, plastic bags, cases, or gift sets. Only gifts that are clearly a sign of an appreciated business relationship are tax-deductible.
Incidental costs
Incidental costs are any fees incurred as a result of giving corporate gifts. These are excluded from the $25 limit. Some examples of incidental costs include:
- Engraving
- Packaging
- Mailing
- Insurance
Costs are only considered incidental if they don’t add significant value. For example, gift wrapping costs may be excluded, but buying an expensive basket to display a gift likely won't.
How to find the perfect corporate gift
Finding the perfect gift takes time and consideration. There are hundreds of sites offering the best corporate gift but there are a few things you need to consider when choosing the right gift.
The four things you need to consider are:
- Personalization: Does the gift fit the person?
- Quality: Is the product a gimmick or something that will easily break?
- Purpose: Is this something that can be used or displayed regularly?
- Over promotion: Does this gift have a purpose other than purely advertising your service?
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The best corporate gifts for 2024
Every business relationship is different, so it can be hard to find a perfect gift that fits your preference and budget. To make things easier we’ve compiled a list of the best corporate gifts on the market.
So take a look and find the hot ticket item that everyone in the office will be fighting over.
Under $25
Luxury chocolate gift box
You’ll struggle to find anyone who doesn’t enjoy these beautifully wrapped truffles. Each box has a range of alcoholic and non-alcoholic treats which can be altered depending on your preference.
The simple design allows space for your branding to pop, making it a memorable gift at an even more memorable price. They even have a full vegan selection so there’s truly something for everyone.
Coffee subscription
Coffee is the lifeblood of most workplaces. So, why not give them a treat they can enjoy year-round?
Coffee subscriptions can be a real morale boost and it gives everyone a chance to find their favorite blend and roast. Just watch out for anyone fighting over the last few beans!
Notebook
The recipient of this notebook will want to take it with them wherever they go. And not just because it’s handy - it’s stylish too.
The pages are numbered and lined meaning they’re ready whenever inspiration hits. And there’s even a handy pocket that lets you hold onto important paperwork. With so many colors to choose from, you’ll be sure to find the perfect one for anyone in your life.
Reusable digital notepad
Looking for a more sustainable way to take notes? This reusable digital notepad allows you to jot notes how you normally would and then send them to your mobile device.
It also helps you keep confidential notes private, avoiding the need to print and you never have to worry about running out of pages.
Bluetooth item finder
Know someone who struggles to keep track of their essentials? These handy Bluetooth tags can attach to anything from keys to bags to headphones.
They connect with any personal or smart home device, you’ll then be able to track their location in an app and they even give off a sound to help you locate your item quickly and easily. Under $50
YETI travel mug
This multifunction travel mug is perfect for anyone on the go, whether you’re looking to keep your coffee warm or iced tea cool.
It's leak-resistant lid helps you avoid any embarrassing spills and its sleek design makes it a hit with everyone.
Trekking pack
Know someone who’s a huge fan of the great outdoors? Give them a gift they’ll love with this customizable trek pack.
This high-quality kit is fashionable, waterproof and even comes with some eco toiletries they can use while out on the trail. What’s better is you can add your logo so everyone else out there will know your brand.
TravelCard Plus
This power bank is small but mighty! The TravelCard Plus is the size of a credit card making it one of the smallest and lightest power banks available.
Equipped with a USB-C PD port, USB-C and lightning cable it can charge a range of devices with a 3,000 mAh rated capacity.
Sony wireless headphones
Perfect for remote work or listening to music and podcasts on the commute, these wireless headphones are powerful and compact. Boasting a range of colors, they have excellent battery life and a crisp sound quality.
The headphones are quick charging but with a 50-hour battery life, they can easily run for days at a time.
Rechargeable hand warmer
It’s getting cold outside, and this rechargeable hand warmer is a treat for anyone who wants to avoid the chill.
It’s small and compact but packs a punch. The battery lasts for up to three hours and heats up to its maximum temperature in less than two minutes.
Under $100
iLOLA Tea Disc Essentials Set
A perfect gift for any tea lover. The iLOLA tea set allows you to personalize your gift with a choice of any two teas from their collection.
It also comes with a 1920s-style tea infuser and iLOLA thermos so you can brew a perfect cup, every time, wherever you are.
Chic coffee table books
Coffee table books are a great way to add a touch of style to a space. And with so many different topics on offer, it’s easy to find one to suit every taste.
Whether it’s fashion, football or food there’s something for everyone and a huge range of prices to fit every budget.
Money plant
Money plants have often been seen as a symbol of luck, wealth and prosperity. Despite their intricate look and braided stems, they’re very easy to care for.
It even comes with a white-gray Ecopot that helps to prevent overwatering meaning it's ready to decorate any space.
Personalized embossed drink dispenser
What better way to unwind after a long day than with a drink from your personalized dispenser. Made from 100% pine, this dispenser is customizable allowing you to add a name, company or brand.
Its classic style makes it a welcome addition to any office that’ll have everyone fighting over it come 5 pm on a Friday!
Skyline etched tumblers
These fine-quality glasses can display a range of hand-sketched city skylines from across the globe.
You can even customize them to include your workspace in the skyline making them a perfect reminder of how your business fits within the city you love.
Conclusion
Corporate gifts are a great way to build professional relationships. But finding the right gift is only part of the puzzle. Different companies have different rules when it comes to receiving corporate gifts, so be prepared to share an item's value or even provide receipts.
Don’t let the technical side of corporate gifting get you down. At its heart, corporate gifting is all about building relationships with clients.
Client relationships are key to business success. That’s why so many companies use a CRM to manage their customer interactions with ease.
Try Capsule CRM free for 14 days and see how it can help you manage your customer relationships.
