Most Entrepreneurs Strongly Philanthropic, Study Says
by Mashum Mollah Entrepreneurship 23 May 2019
The bulk of entrepreneurs dig deep when they give to charity, donating 50% more annually to worthy causes than people not running or advising their own companies. That’s according to a report by Fidelity Charitable called Entrepreneurs as Philanthropists, which surveyed 3,000 Americans in a variety of professions.
The survey found that entrepreneurs give about $1,200 more to charity than those working for traditional companies at the same income level. Three out of five entrepreneurs said that their approach to business influences their giving. And more than three-quarters said charitable giving is a critical part of who they are.
The Long Term Future for Philanthropic Entrepreneurs:
Long term, there may be important benefits for non-profits or charities that attract entrepreneurs: 70% of those who plan to sell or shift ownership within their companies within the next five years are interested in building some form of charitable giving into the exit.
Looking at charitable giving as a type of investment is critical for Ben Pierce, former president of Vanguard Charitable, a U.S. non-profit organization working to increase philanthropic giving. Pierce says like any investment, you have to perform due diligence on the charities you are interested in. Fortunately, there are plenty of ways that you can screen charities, he notes. For example, most non-profits and charities must disclose their financial and governance information — much of which is available freely online.
Examples of Philanthropic Entrepreneurs:
Entrepreneur Bobby Genovese believes that giving to others is a responsibility and a privilege, especially supporting those organizations that serve children. Bobby Genovese is a regular supporter of Toronto’s Hospital for Sick Children, Canada’s largest and most sophisticated centre for pediatric cancer research, treatment, and care. “Through supporting this organization, we’re in turn able to help provide critical resources and support for their pediatric cancer initiatives, from research and treatment to practical advancements like chemotherapy backpacks that free young patients from confining hospital stays.”
Brenton Hayden, the founder of Renters Warehouse, says there are plenty of well-deserving charities that are doing a world of good for local causes, as well as overseas work. The key is taking the time to find them, he says. “Scout out potential charities and find legitimate groups that are working in causes that you’re interested in supporting.”
In the end, your decision to donate should be made on personal preferences, as well as data. Donate with confidence and count on your money being put to good use. Remember, you don’t need to give a lot to make a meaningful difference to the causes you support.
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