Entrepreneurship And Philanthropy: The Perfect Combination?

You may be wondering: how can an activity that is supposed to be centered on making money co-exist with one that’s mainly focused on giving it away? Well, even though it may sound counter-intuitive, entrepreneurship and philanthropy actually go extremely well together. In fact, some of the world’s most prominent entrepreneurs like Bill Gates and Mark Zuckerberg have made it their mission to share a huge part of their wealth to those in need.

But how exactly does this whole thing work? Should you really include philanthropy when writing your business plan? Well, to answer these questions, you’ll need to first understand the benefits of doing so:

It earns you tax credits

This probably is the most direct benefit of practicing philanthropy (a.k.a. corporate social responsibility) as an entrepreneur. For instance, in Quebec, tax credits are awarded to businesses that donate either to registered charities or cultural, artistic or communications organizations. Needless to say, the more you donate, the lower your taxes become, ultimately increasing the money that your company gets to keep.

It boosts employee morale

Another benefit of corporate social responsibility is that it makes employees feel good about what they do. By giving your team the chance to make a difference in the community through their work, you inspire them to do better. Of course, this results in increased employee productivity, which ultimately means more profit for the business.

It allows you to build a more likable brand

It doesn’t matter whether you want to become the next Jason Sugarman and invest in a wide variety of companies or just focus on running a single business, donating to charity automatically makes you more likable. Of course, likable, in this case, also means extremely profitable. Think about it. When people like your brand, they end up either wanting to buy your products or investing in your company. Sounds like a pretty good deal, right?

The bottom line: they should go hand-in-hand

So, to answer the two questions posed at the beginning of this article, first, it works by boosting your profits. It does so by giving you access to tax credits, more productive employees and eager customers and investors. As for including it in your business plan, on the other hand, the short answer is yes. Just be sure that your company is already earning enough to sustain itself before doing so.