Giving Compass' Take:
- Start-ups and small businesses have many reasons to prioritize philanthropy in their company culture and structure.
- What are the mutual benefits for businesses and the philanthropic sector if more companies prioritize philanthropic activity? How can this help invigorate local communities?
- Read these insights on corporate philanthropy programs for small businesses.
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With small-business bankruptcies, geopolitical instability and rising business credit rates, portioning out hard-earned earnings before interest, taxes, depreciation and amortization (EBITDA) for others is more difficult than ever. With such turmoil in today’s market, philanthropy could naturally take a back seat. But, if you’re an entrepreneur running a startup, I challenge you to rethink your position.
Reflecting on the early years at my company, I've witnessed firsthand the transformative power of philanthropy. Here are four reasons I am taking my philosophy for philanthropy into my new venture and why you should, too.
It’s the right thing to do.
Make no qualms about the core reason for volunteering; it benefits your community and greater humanity. If everyone took time to put others first, I think the entire human race would be in a much better position in 2023. As an entrepreneur, you understand, perhaps more than anyone, that doing what is right vs. what is easy often conflicts. However, choosing the former benefits you in the long run.
You gain perspective and a lasting team bond.
There is just something about setting our routines aside and working toward a common goal for the good of another. The satisfaction that comes from that is unlike anything I have experienced.
Support is reciprocal.
As startups, we don’t exist in a vacuum. In fact, we’re an integral part of the communities we operate in. Each small business is weaved into the fabric of the community, resulting in an organic connection with the surrounding businesses and consumers. By engaging in corporate giving and supporting things like local education, displaced communities, veterans, healthcare and infrastructure workers, we can create a positive feedback loop.
Small deeds often have big payoffs.
Especially in the early stages of a startup, our resources are often limited, and the temptation to prioritize profit margins over charity can definitely muddy the waters. It may seem like it makes sense to wait until you’re in a stronger financial position to start giving back. But when will you start?
Read the full article about why small businesses should prioritize philanthropy by Kyle Mitnick at Forbes.