Whether building bicycle trails or donating to local schools, philanthropy is an essential part of business for entrepreneurs. It shows commitment to the community, makes respect, and helps with brand recognition.
The guiding belief behind entrepreneurial philanthropy is that competition in unfettered markets is the only way to create prosperity, liberty, and a cohesive society.
Invest in the future of your community.
Whether it’s supporting local youth programs or helping build a new park, investing in the future of your community is one of the best ways to give back. But before you start writing checks, consider amplifying your generosity and having a more significant impact.
Entrepreneurs like Bill Malloy San Diego are known for their emphasis on philanthropy and are not alone. A survey found that 89% of entrepreneurs practice monetary generosity, and 70% donate their time.
In the 1950s, a paranoid public and government worried that foundations could be used to fund “anti-American” and “pro-socialist” activities. This prompted two Congressional probes, which helped philanthropy become more professional.
While it’s essential to donate cash and other resources to charity, it isn’t just about money. People can also donate their time, which can have a powerful impact. This type of philanthropy can be done by individuals or by corporations. Some examples include volunteering at a local event or serving on a board or committee. This can be a great way to network and make connections with other successful business owners who may be able to help your company grow.
Many entrepreneurs are committed to addressing market gaps through business and strive to address social issues through giving. This demonstrates that they’re genuinely philanthropic. However, it’s essential to approach philanthropy strategically to ensure that your business benefits from it. For example, if you have a strong network that can be activated for your philanthropic activities, setting up recurring donations or encouraging them to volunteer will ensure you get the most out of your generosity.
Philanthropy often gets stereotyped as money transfers from the rich to the poor, but that’s not always true. In fact, in the US, one of the most philanthropic countries, barely a fifth of what the big givers donate goes to those in need. Much of it supports the arts, sports teams, education, and healthcare.
Entrepreneurs are already attuned to creating solutions for problems, and philanthropy offers them the chance to use those skills to help communities and small businesses thrive. One example is a woman who sold her business but wanted to put her energy into helping others with technology challenges.
Often, entrepreneurs choose to support non-profits that are deeply personal to them. For instance, if your company, it might be a good idea to sponsor a local group that subsidizes diabetes medications. Not only will that positively impact your community, but it can also serve as an excellent team-building opportunity for your employees.
Give back to your employees.
In addition to giving money, businesses can back employees’ philanthropic impulses by offering paid volunteer time. The opportunity to help a worthy cause without needing PTO encourages staffers to take advantage and helps them feel part of a company-wide effort.
Entrepreneurs have an incredible opportunity to create positive social change as the business world becomes increasingly global. When they do, it’s a win for everyone involved.
But even smaller-scale entrepreneurs can make a difference. For example, when Facebook relocated its headquarters to improve bicycle trails in the area. This helped to ease residents’ concerns and build respect for the company. This type of philanthropy doesn’t cost a penny and may even improve employee morale and productivity. A study found that workers who participate in charitable activities feel more engaged with their companies.