Peter Zieve is an active member of the community and donates funds to organizations in his hometown of Mukilteo City, Seattle. He knows that without the support of his hometown his business Electroimpact, would not have become as successful as it has, and he does not want to forget where he has come from especially in these times of austerity, he wants to give back to the community that helped him become a success. He has just entered into a local politics campaign as he wants the best for the people of Mukilteo.
But Peter isn’t the only entrepreneur who gives to charity, a recent report produced by Fidelity Charitable Gift Fund and Ernst & Young states that entrepreneurs, even those of small businesses are much more likely to give to charity than employed people. Out of the 150 Chief Executives that took part almost three fifths of them donate to causes close to their hearts. Over sixty percent of them believe that being an entrepreneur does make you more likely to give to charity. A lot of the entrepreneurs believe that the spirit that made them a success in business is what encourages them to support charity. There characteristics of seeing the bigger picture, putting their heart and soul on the line, taking risks and the investment of their time in what they see as good.
The survey also showed that entrepreneurs give twice as much as some of the biggest companies. Over a quarter of the businesses had charitable donations factored into their original business plan. And almost three quarters started paying to charities when they were still in there start up days and barely getting by.
Almost 75% of those who took part in the survey believed that the ethos of their company had been planned and succeeded in inspiring their employees to be charitable, which is excellent news. They almost incorporate giving into their work ethic and business policy. It is a part of the everyday workings of their business.
Around thirty percent of those who took part said that working with certain charities is at the heart of their business, they also say that listening to employees and suggesting working with charities that are close to their hearts. About a third of the businessmen question stated that they support those who work with charities that are in line with the mission of their company and some supported charities that reflected their passions and hobbies e.g. sports.
As well as charitable donations over 60% of those with their own business also worked on the board of a non-profit company at times which was benefiting its community or a certain section of society. They do however keep their business heads on and ensure that the charities are doing the best with the money that they received.
There are some business-related benefits too, tax deductions, increased exposure – it is likely for example that your non-profit organisation members will choose to buy from you and spread the word to their friends and families, acting as your herald. You could also right about it on your business blog!