Philanthropy’s role in your business start-up

Charity and philanthropy used to be seen as areas a business could only afford to engage with once it had established itself and was making a steady profit. These days however, philanthropy is often a part of the business model for start-ups and entrepreneurs from day one. Furthermore, associating your business with a particular charity, or even a range of causes, can actually help it to maximise profits and attract customers.

Giving something back

Not just customers expect businesses to be charitable. Increasingly your employees will also want to work for a company that is giving something back. As we all become more aware of the world around us, the best and the brightest want to work in a job that not only utilises their talents and provides them with opportunities for career advancement, but also allows them to contribute something meaningful to society. Thus, being seen as a philanthropic company will help you to attract the best talent to work for you.

Think local

Charitable donations and philanthropy can come in many forms, and for small businesses it’s sometimes best to start out local. What are the pressing problems in your community? What is the most responsive charity to donate to? Your support needn’t be directly financial either. Collecting clothing, food and toys for a cause can be a great help, or just raising awareness and encouraging your employees to volunteer their time.

Charity fun days can function both as a way to raise money and awareness for your cause and a team-building exercise for your employees. Knowing that their work is raising money for charity builds team morale and encourages your staff to give that little bit extra, particularly if the cause is close to their heart. Cancer charities are great for uniting a workforce, as the disease in some way has affected almost everyone. The institute Curie is one of many charities that rely in a large part on donations from business; you can make a cancer online donation or find out more at http://www.institut-curie.org/support-institut-curie-foundation.

Telling a story

With such a wide range of choice in the marketplace, customers are drawn to businesses that are seen as socially responsible. Giving a percentage of sales profit to charity or investing in philanthropic initiatives can give you the kind of feel-good narrative major PR companies are paid millions to concoct. Yours will cost you a fraction of the amount, and will be so much more effective because it’s real.

Understanding philanthropy doesn’t mean seeing it as a marketing gimmick or a tax write-off however. Business leaders need to be aware of how their success is intertwined with the greater good of society, and in the age of globalisation, that society is worldwide. By giving something back, you’re empowering your customers to make a difference, but you’re also improving your own business environment, and helping to create a fairer world for everyone.

Whatever charity you choose to support you’ll find you’re in good company in choosing a socially responsible business model for your start-up. Customers and employees respond strongly to philanthropy, so your support for a good cause will help your business stand out from the crowd from the beginning.