9+ Ways to Incorporate Intentional Giving in Your Business Plan
Spoiler Alert!We all live and participate in a capitalist society.
One where private businesses own and control property, and demand and supply freely set prices in the markets to serve society's best interest. The main feature of capitalism is the motivation to make and keep a profit, and unfortunately, sometimes even hoard it.
Over the past few decades, leaders have recognized that their businesses are responsible for doing more than maximizing profits and stockpiling money. They have a social responsibility to do what’s best not just for the business itself but their team, the planet, and society at large. This is commonly referred to as corporate philanthropy. While the name may scream big business, it doesn’t matter the size of your business… only whether you make being socially responsible a priority.
This is not about giving all your money away. (That actually would not be healthy for the business!) The business needs to keep some of its profit for sustainability. A healthy business needs team members that are paid a living wage (including, yes, YOU! the owner) so the entire team can show up as their best selves to carry forth the purpose of the business. This is known as embracing ethical responsibility.
I’m talking about what happens after you know your numbers: you actively plan to give back and commit to improving the world and society.
Consciousness, or setting an intention, is the key thing I want to discuss today. It doesn’t matter how much you give, what organization you support, or even how often you give back.
Creating a philanthropic business simply means taking action by giving and volunteering to positively impact our local communities and the world.
Now, I fully understand what it means to be a small business. When I was trading dollars for hours and charging whatever the market rate was, there wasn’t much left over after expenses. If you’re waiting to give whatever crumbs you have left, there will never be anything there. Hence it requires that we put some thought into it and make it part of our financial and business planning each year.
I want to point out that it does not have to be only a monetary impact. When I started, with tight funds, I donated my time and energy to causes I believed in. With my cash handling system, I intentionally allocate money for this purpose and share that process later in this article. Today I still do a hybrid of giving monetarily and offering pro bono services.
Most small businesses I have worked with over the years desire to give back to their communities, but it can seem overwhelming without a plan. My opinion on making donations for fundraising efforts, supporting school activities, and sports boosters are that these cash and non-cash product donations are more marketing than giving back to the community.
If the business has a marketing budget, this type of community support may have been included in that intentional plan. Over the last 36 years, very few of my clients had that plan, let alone knew what the max contribution amount for the year was… so forget having an actual process to fulfill the donation. There was even a level of “luck” if the donation was made! It depended on if the owner received the request; or whether an employee or team member made the request; overall, was the business feeling cash happy? Relying on nothing other than luck means the donations were small, and the impact was minimal.
These days, I work with businesses that consider giving back to their communities as an extension of supporting their values. This is why the quote below from, Modernist Financial, caught my attention:
We are advancing a new money consciousness – one borne of gratitude, plenty, generosity, and a deep-felt understanding of enough.
- Modernist Financial
Philanthropy is a business saying, “YES, we have plenty and are grateful to be here on this planet.”
When considering how you currently give back to your community, ask yourself this: Are you giving based on top-line revenue, bottom-line profit, or some random amount when asked?
The difference between these three is impact. How much intentional impact do you want to make? How much change do you want to create in the world?
It all starts with intentionally planning and creating a habit of giving back. Not so coincidentally, this is something I have been encouraging my clients to include in their cash-handling system since 2016! 😉 Here are some ideas on how to simply get started:
Start with a small amount, but be consistent! Whether you’re donating $5/month or $25/month, automate that donation and make it a non-negotiable line item. Organizations prefer automated monthly donations, as it helps them better plan their cash flow. (Sound familiar??)
Intentionally increasing the price of a service or product to benefit a specific organization - whether that is a percentage of profit or for every sale made a flat amount - allows you to create a culture of giving for everyone involved. A great example of this is onepercentfortheplant.org, which partners with over 4,000 environmental causes and is seen at the bottom of emails, ezines, websites, etc. You can join their community, pledge your donation, and be listed on their website as a supporter and many other organizations.
“This is not philanthropy. This should be a cost of doing business. It’s paying rent for our use of the planet.”
- Yvon Chouinard, Founder of Patagonia and 1% for the Planet
Before running out into the world declaring your intentions, sit down and review your financial plan, the culture you are creating for your company, and your own values and dreams. Where do you want to create change? Can you give money, and if so, how much? Can you give time, what would that look like? Will you involve your team?
For a real-life example, this is what I am doing:
Pledge 2% top-line revenue for business; 3% for personal - as mentioned, I am a work in progress, and each year I intend to raise those pledges by 1%
Adjusted my financial plan to accommodate the pledge
Every week when I hold my money date, I transfer the money to my Profit account. (OR create an intentional savings account)
Quarterly, I make a distribution to the charity chosen for that quarter
I didn’t get to this point overnight. Remember, when I started, I donated more with my time than money. I started with a small, consistent investment. While 2% doesn’t seem huge, it is not about the amount. It is about your intentions and ability to see more abundance versus lack in the world.
Utilizing corporate philanthropy initiatives is important for companies focused on growth and employee engagement while giving back and benefitting your community. Perhaps you are already giving back and looking for more options. Or you want to involve your team. Here are nine more ways to include corporate philanthropy in your business:
Volunteer Time (aka Days of Service)
Businesses can experience short- and long-term benefits of bringing their team out of the office and into volunteer spaces. Employees seek out businesses that are invested in charitable causes. Here’s a great article from 2021 that talks about the benefits businesses will have when they incorporate Employee Volunteer and Skills Giving program.
A great example of this is Habitat for Humanity. No building skills or tools are required. Contact your local office to find out about options that include running errands, clean-up work, or even working alongside the future homeowner to build their home.
Matching Gifts
Set parameters on the amount being matched. One example, the company will match $500 per year per employee. Another, if the employees as a team raise a certain amount for a particular cause, the business will match it.
In the past, I would see this option mostly from large corporations. Research shows that about 65% of Fortune 500 companies have a matching program. A business matching program should be included in your employee handbook, so team members know what the process is.
Volunteer Grants
A great option for businesses to support the organizations a team member is interested in or already volunteers for. This type of initiative will donate a set amount of money based on the number of hours volunteered. An example could be once the employee volunteers 20 hours, the business will donate $500. Figure out the best way to track the time, and the company donates directly to the organization.
Want more examples? 360matchpro.com shows Google donates $10 per every 1 hour volunteered. CVS Health has a minimum requirement of 15 hours for individuals, and then the company will donate $500-$1500.
Paid Volunteer Time Off
Employer-sponsored paid time off to do volunteer work is referred to as volunteer time off (VTO). The article I found as research indicated that most policies don’t include massive amounts of time and that one day (or eight hours that can be divided up) is most common per employee per year. Businesses can specify specific organizations for which VTO is allowed. Include this in your employee handbook and ensure your team has a way to indicate the time off on their time tracking or how to make a request.
Annual Grant Stipends
This is an interesting option in that a business sets an annual amount available for each team member to donate to the nonprofit of their choice. The business donates the money to the nonprofit on the team member's behalf.
Community Grants
While the one above puts all the power in the team members' hands, this option allows the community to apply andthe whole business to select and participate in the grant-giving process.
In-Kind Donations (Pro Bono Services or Product Donation)
Time and expertise are donated at no cost to the nonprofit. The difference between volunteer support and pro bono services is that the services provided are typically professional.
Have a building with a parking lot and access to water? Allow that space to be used for a car wash. Be a donation drop-off site. Have your team adopt a less fortunate family, organization, or shelter, and then gather the most needed things.
Sales/Revenue Based
Based on sales for a period of time, a set amount is given to an organization. I’ve seen restaurants give a percentage of sales for a single day or period of time to the local Food Bank or a school organization. Bombas has a buy-one-give-one program for their socks and underwear. Or give 1% or more of your gross sales.
Let the Customers Decide
So many ways to get your customers engaged in your philanthropy work.
An optometrist has an eyeglass package that gives back a certain amount where the customer gets to decide from four different local organizations which one to give their part of the donation by voting.
While attending some virtual training, I often have the option of paying a little extra or the full cost of another ticket so the host can offer a scholarship.
Thrive Market - when you finalize your order as a member, you have the option of gifting any dollar amount to support others through the initiates that Thrive supports.
There were a few options I hadn’t even thought of. Again, just like being profitable, being a philanthropic business doesn’t happen without planning. Take another look at your financial plan. Check in with your team. Pick organizations that you are passionate about supporting. Then figure out what sounds fun and joyful and give back.
For me, donating is my entrepreneurial love language. I’m a natural spender, so not only do I enjoy the satisfaction of spending my money, but I know I’m providing my community with the support that goes a long way to improving the lives of those around me.
Looking for support in figuring out the best way for you to start giving back through your business? Book a free call with me, and let’s explore if we’re a good fit for working together.