How Much Should I Spend on Corporate Gifting?

Corporate gifting can be a powerful tool for businesses of all types and sizes to foster strong relationships with clients and employees. This guide covers everything you need to know about corporate gifting, including its benefits, budget considerations, and important rules. Understanding the nuances of corporate gifting can significantly enhance your company's reputation and loyalty with clients and employees.

Corporate gifting involves presenting thoughtful gifts to clients or employees to show appreciation, foster goodwill, celebrate milestones and occasions, or strengthen professional relationships. At Broadway Basketeers, our selection of gourmet corporate gift baskets is designed to convey your company's gratitude, respect, and professionalism.

In this guide, we’ll walk you through the basics of corporate gifting, the benefits, how to budget for corporate gifting, as well as the rules and guidelines to follow.

Benefits of Corporate Gifting

Regardless of the size of your business, your company can reap numerous benefits by using corporate gifting to show recognition and appreciation to clients and employees.

Benefits for Client Gifting

Whether your client is brand new, or you already have a lasting professional relationship, your clients likely don’t want to be another number on a spreadsheet. Corporate gifting can show your clients that you value the relationship and would like to continue working with them. Some of the benefits of corporate gifting to clients include: 

• Strengthen Professional Relationships: Thoughtful corporate gifts can show your clients that you value the professional relationship. 
• Increase Loyalty: Regular gifting can boost client retention and loyalty, increasing the likelihood that they continue doing business with you.
• Stand Out Among Competitors: Many of your clients will have other professional relationships, and corporate gifting can increase your brand awareness and help your business stand out among competitors.
• Tax Deductions: Depending on what you spend on corporate gifting, some or all of the costs may be tax deductible.

Benefits for Employee Gifting

Corporate gifting goes beyond clients; it is also an effective way to motivate and appreciate employees. Implementing a corporate gifting strategy for key moments such as new employee onboarding, milestone celebrations, birthdays, and holidays demonstrates that you value your employees and their efforts. These thoughtful gestures can help create a positive working environment where employees feel seen and apricated. Some of the benefits of corporate gifting to employees include: 

• Increased Motivation: Employees feel appreciated and motivated to perform better when recognized with thoughtful corporate gifts when achieving milestones and hitting targets.
• Improved Morale: Corporate gifting can boost overall employee morale, leading to a more positive workplace environment and atmosphere.
• Increased Employee Retention: Showing appreciation through thoughtful and meaningful gifts can increase employee satisfaction and reduce turnover rates.
• Tax Deductions: Depending on what you spend on corporate gifting for your employees, some or all of the costs may be tax deductible.

How Much Should You Spend on Corporate Gifting?

Determining how much to spend on corporate gifts can be a delicate balancing act. Spend too little, and your gesture may not make an impact. Spend too much, and you may strain your budget or finances. We’ll explore the key factors to consider when setting your corporate gifting budget, ensuring your gifts are both meaningful and financially.

Client Gifting

When planning your budget for client gifts, consider the importance of the client. High-value clients may warrant more expensive or frequent gifts, while smaller or less frequent tokens may suffice for others. Here are some factors to consider when deciding on how much to spend on client gifting:

• Budget Considerations: Set a clear budget for each client tier to ensure consistent and appropriate spending.
• Gifting List Size: The number of clients you plan to gift will significantly impact your overall budget. Make a comprehensive list and allocate funds accordingly.
• Personalization: Personalized gifts can make a more significant impact. Allocate part of your budget to customizing gifts to enhance their value and relevance. Check out our personalized gifting service.

At Broadway Basketeers, each gift basket includes a free customizable message so you can add your own message when sending your gifts. In addition, we also offer customizable gifting services for businesses who would like to tailor their gift baskets to their specific needs.

Employee Gifting

Employee corporate gifts can be given to existing employees as well as new hires to welcome them into the company. At Broadway Basketeers, we offer a wide variety of employee gift ideas for businesses of all types and sizes. Here are some factors to consider when deciding on how much to spend on employee gifting:

• Budget Per Employee: Establish a standard budget for employee gifts, ensuring fairness and consistency across the board.
• Occasions for Gifting: Plan your budget based on the number of occasions you intend to gift. This can include holidays, work anniversaries, achievements, and more.
• Customization: Personalizing employee gifts can make them feel more appreciated and valued.

Rules For Corporate Gifting

While corporate gifting for clients and employees can have many benefits, it’s important to follow certain rules to avoid potential pitfalls. Whilst there are benefits, such as tax deductions, there are also bribery laws that need to be considered. Here are some factors to consider when corporate gifting:

Legitimate Business Purpose

Ensure that gifts given to clients or employees serve a legitimate business purpose. These gifts should enhance business relationships, express gratitude, or recognize achievements.

Transparency with Corporate Gifting

Maintain transparency in corporate gifting by keeping detailed records of all gifts that are given and received. This helps to demonstrate that the gifts are given openly and are part of a broader business strategy.

Proportionate Gifting

Corporate gifts should be proportionate to the business relationship and not unnecessarily lavish or expensive. Extravagant gifts may raise red flags and could be perceived as attempts to influence or bribe the recipient.

Timing and Context Considerations

Consider the timing and context in which gifts are given. While gifts given during traditional holidays or to celebrate milestones are appropriate, gifts given around contract renewals, competitive bidding processes, or during sensitive negotiations might be seen as attempts to gain an unfair advantage.

Potential Risks to Reputation

Corporate gifting can impact the reputation of your business positively or negatively. Ensure that all gifts are appropriate and align with your company's values.

Annual Corporate Gifting Limits

Be aware of any annual limits on corporate gifting that are set by your company or by law. Stay within these limits to ensure compliance with regulations.

Avoiding Bribery Accusations or Suspicious

Bribery is the act of giving a monetary sum, or in this case, a valuable gift, to persuade a client or employee to do something for you. To avoid any potential accusations of bribery, ensure that all gifts are reasonable, transparent, and documented. Avoid gifts that could be seen as influencing business decisions or that might create a conflict of interest.
 

Corporate gifting is a great way to build and maintain strong relationships with clients and employees. By understanding the benefits, setting appropriate budgets, and following essential rules, you can leverage corporate gifting to enhance your business’s reputation and loyalty. At Broadway Basketeers, we understand the impact of a well-chosen corporate gift. Our selection of gourmet corporate gift baskets is designed to convey your company's gratitude, respect, and professionalism.