When I first started researching business philanthropy I was amazed and shocked to read how many articles openly pitched philanthropy as a marketing strategy. With statements such as ‘boost your business by creating a compelling charitable profile’, it’s plain to see that for some businesses their philanthropic investment is simply ugly lip service.

I also recall a client several years ago who left his highly paid job, on the basis that his company’s values were a sham. They had a ‘charitable profile’, but one that was all after-dinner-talk backed with no real will to make the contribution.

However, I’m inspired to learn about social entrepreneurs like Blake Mycoskie. Buy a pair of his shoes and he’ll give another pair to someone in the third world who needs them. http://www.toms.com/ This is a prime example of a business operating a new model, one based on innovative thinking and contribution – and it makes an undeniable difference.

Sustainable Philanthropy

Making a contribution is great - making a sustainable contribution is exceptional. With this sustainability in mind, here is what a business needs to consider.

1. Soul Searching: By weaving philanthropy into your business model, what are you trying to achieve? Do you really believe in the cause you want to support? Integrity is key to success.
    
2. Risk of Going Bust: Part of making a sustainable contribution is about doing so without going bust. The balance has to be right. Over six years I’ve provided $15,000+ worth of coaching for free to numerous people. These people benefited from the coaching to reach their potential, but didn’t have the financial resources to pay. I could have coached three times as many people just like that, but I wouldn’t be in business today. It’s a fact: You have bills to pay and a future to build, so over exerting your business to help beyond its means risks bringing your business down.
    
3. Exchange: I am totally for businesses promoting their philanthropic activities as it models the role a business can make to society and the environment. I think for most businesses intent on making such a contribution, this exposure coupled with their satisfaction from giving is enough return. As soon as a business begins to use philanthropy as a way of growing a database, networking or selling more products, then is it philanthropy or strategy? And is that OK?
    
4. Lateral Philanthropy: Making a contribution in the form of donating money is just one-way of making a difference. Time, skills and services are also currencies of philanthropy. I give my time to individuals and community organisations because it’s a sustainable way to contribute. But also, by facilitating strategic planning – as an example – my contribution is more valuable than donating money.

Any business can innovate to make a bigger contribution, and we are seeing more and more social praise and success for those businesses doing so. I think business has a leadership role to play in this way, and this holistic business model means profit for the business and the communities it serves.

About the author

David Savage is a well known New Zealand Coach, operating since 2003. He's Coached in large government organisations at all levels including CEO. He's also helped train over sixty new coaches with one of the worlds largest Coach training companies. He's a Director of two coaching companies in New Zealand and the creator of THE EXPERT COACH program, dedicated to helping Coaches grow their business http://www.expertcoach.co.nz