“Making a difference in people’s lives – and seeing it with your own eyes – is perhaps the most satisfying thing you’ll ever do. If you want to fully enjoy life – give.” -Michael R. Bloomberg
It was recently reported that Bill Gates and Warren Buffett convinced countless other billionaires and multimillionaires to bestow half or more of their wealth over their lifetime and after they die to various charities and causes important to them. As I read through the personal letters of these donors on The Giving Pledge website, it reminded me how important it is to have a giving mindset, even if you’re not incredibly wealthy or a millionaire or even a “thousandaire.” Everyone has the ability to give and most especially small business owners and entrepreneurs.
This is an important issue for me as an entrepreneur and I feel I have come to understand the importance of giving back since starting Cavendo while still in high school. Like most, I’ve given to an envelope before (as in, blindly given a seemingly random amount based on my comfort level, discretionary funds, and what the donor was asking), but lately I’ve come to realize it’s a lot more than that. Don’t get me wrong, it’s great to support a large-scale issue like a national disaster, but I strongly feel that giving starts locally and most importantly it’s something you should always be doing. Giving also isn’t just about the money–it’s a lot more involved and requires a true commitment from the donor.
Giving is a large topic that I suspect will become a series on this blog, but let’s start simple: What can you do today to start getting into a giving mindset. I will focus on small business owners and entrepreneurs since that’s my experience.
How do you find a cause to support?
1. Start with your personal preferences.
What is a cause you feel strongly about? See if they have a local chapter or ways to get involved. If not, maybe you can start one. I prefer to start simple and work your way up though.
2. Talk to your trusted advisers, friends, and colleagues.
Who do they support? Why is it important to them? I’ve found great causes just by looking at who my clients and other partners support.
3. Start with business or networking groups.
Look at your local Chamber of Commerce or find a decent business networking group to make some good local connections and ask around to see who supports what.
How you can incorporate giving into your business strategy with limited funding?
Remember, giving it’s just about the money. When you are limited in your discretionary or charity budget, you can always give your time.
1. Volunteer time with a non-profit or cause.
These groups are always looking for willing and able volunteers and unless you’re volunteering your time they have to pay for someone else’s time. Since you don’t have the money to give them, offer your time so they can save their money for more important things.
2. Join a board of directors or committee.
Even better, work your way toward becoming the chairman of one. Becoming a Board member elevates your level of responsibility and commitment to an organization. You instantly gain legal rights and responsibilities as a fiduciary agent for the organization. Board memberships are the most intense form of giving since it typically requires at least monthly Board meetings, committee involvement, and fundraising.
3. Recruit your colleagues, clients, and friends to help.
Maybe you don’t have a large charity budget in your organization, but you probably have colleagues, clients, partners and others who do. If not, just ask and start with the people you know. I’ve found amazing opportunities just by doing one simple thing: asking for help. You’re not selling, you’re asking them to help a cause you care about. It’s different.
What are the benefits of sustained giving?
While it should be self-explanatory, the benefits of sustained giving as a small business owner or entrepreneur are countless. Aside from the direct benefits those you are helping will receive you will find other benefits including:
1. Increased exposure and recognition.
You are taking time to help someone else and a cause you care about. Others will take notice of this and you may even be asking them to help you. Besides getting your name on letterhead (as many Boards do for their organizations), you get a seat at the table and the opportunity to rub elbows with other successful business owners and entrepreneurs when you’re volunteering or working on a Board.
2. Tax deductions.
I’m not a CPA, but you should consult one on this issue because every situation is different. It is true, however, that you do gain various personal and business tax benefits by giving. You stand to gain the most through your cash contributions, but the bottom line is that those dollars that flow through your business that go back to a non-profit or cause you support are likely to be treated very well from a tax standpoint
3. It feels good.
You’re doing good for the world. Pat yourself on the back.
Get out there and do some good. Make giving an ongoing initiative at your small business and share your story.
Giving is more than just feeling good. If you give the right way to the right organizations, you can see the difference to people. I used to volunteer for a literacy group. I was teaching a young man to read. It was frustrating sometimes because he was mildly retarded. But I could see the difference it made to him as he improved. That’s a feeling you just can’t get anywhere else. And giving just money doesn’t give you the same feeling. You can see the direct effects of time in the way you can’t always see it with money.
It is great to read an entrepreneur’s message about giving back as it seems lately so many small and mid-sized businesses have been focusing on their own survival and thinking that they have nothing to give. But businesses need to be aware that they can offer so may things that require little or no monetary donations, such as volunteering their services, helping raise money, collecting food, clothing, school supplies at their businesses and so much more. There are huge benefits a business receives from giving back and being involved in the community. And you are so right-finding where and how to give back is so easy, it might even be right next door.
Hey Jonathan,
Great article, and nice insight into board membership. I think too many people join nonprofits boards and feel like as long as they attend 90% of the meetings, they are good. Being a board member can be very rewarding, but people need to realize that is takes serious dedication hard work.