In today’s rapidly evolving landscape, entrepreneurship is not just about generating profits; it is also about creating a positive impact on society. More and more entrepreneurs are recognizing the importance of giving back and engaging in philanthropic endeavors. Entrepreneurial philanthropy is the practice of using one’s resources, time, and influence to make a meaningful difference in the world while running a successful business. 

When we consider only the monetary scale, donations may result in tax relief and gift aid in the country in which you are giving, but entrepreneurs who are ‘serial givers’ will often speak of an entirely different set of values when explaining their motivation behind philanthropy. Many entrepreneurs believe that they got into entrepreneurship in the first place because they wanted to offer products and services that would make a positive change in people’s lives. 

The Rise of Philanthropic Entrepreneurs 

Over the last few decades, there has been a noticeable rise in the number of philanthropic entrepreneurs. These powerful people and visionaries have realized that they have the power to make a lasting difference beyond financial success. 

Bill Gates, Microsoft’s co-founder gave away a whopping $5 billion to the Bill and Melinda Gates Foundations. Other entrepreneurs, such as Warren Buffet, Michael Bloomberg, and Sergey Brin, to name a few, are also giving away millions of dollars to make the world a better place. 

By combining their entrepreneurial skills with a strong sense of social responsibility, they are redefining the role of business in society. A philanthropic entrepreneur is someone who actively seeks ways to contribute to various social causes and uses their business platforms to promote positive change. 

Benefits of Philanthropy that entrepreneurs should know 

• Giving Makes Individuals happier 

Research that was published in the International Journal of Happiness and Development has shown that giving money to charity increases happiness measurably. Imagine you have millions of dollars with you and you give away a portion of your earnings to needy people. Wouldn’t that make you happy? Philanthropic entrepreneurs do the same. A study conducted has shown that human beings thrive off social connections and benefit when they act in the service of others’ well-being. 

• Giving is best for company morale 

What attracts you to a particular job? Is it the money? Status or the impact it has on the world we live in? You might be thinking that it is the high salary package that attracts the most, but the reality is different from what you can imagine. 

According to research conducted, it has been shown that millennials are deeply interested in jobs that have meaning. 

According to a 2016 Deloitte study, many millennials were twice as likely to give their corporate culture a very good rating if the company took part in volunteer activities. 

Imagine you are an entrepreneur running a company, and everyone knows that you give away a portion of your wealth for the betterment of the world. Wouldn’t that make employees working for you happy and satisfied? Climate change, animal welfare, and social change are a few of the topics with which millennials resonate deeply. When philanthropic work is done by organizations in these areas, it makes the employees happy and content with their jobs. 

• Increases Networking Opportunities 

Engaging in philanthropy opens doors to new networking opportunities. Collaborating with nonprofit organizations, fellow entrepreneurs, and socially conscious individuals can lead to valuable partnerships and connections. These connections can offer unique insights and potential business collaborations. 

• Philanthropy Has a Butterfly Effect

Companies that pay it forward set a good example for employees, who can later carry the baton in their daily lives. This is especially true if the companies engage their employees in active giving, including fundraising and sporting charity events. 

When a company wants to make a difference to local communities or any international problems like climate change, poverty, etc., it can spark interest in the employees for causes similar to the above-mentioned ones. Entrepreneurs should indeed pay attention to the recent research that indicates that people prefer to donate time rather than money. They should also work to build awareness of the impact of different types of giving. Charitable pursuits provide a welcome boost of happiness for the giver. They also boost company morale. 

• Giving has positive media coverage 

Philanthropy can attract media attention and positive press coverage. When your company engages in philanthropic initiatives, it becomes newsworthy, and media outlets may highlight your efforts. Positive media coverage can increase brand visibility and attract potential customers and investors. 

• Philanthropy can help in business growth

While the benefits of philanthropy are rewarding both on a personal and social level, they can also contribute to long-term business growth. A positive brand image, a loyal customer base, engaged employees, and strong networks can propel your business forward and contribute to its overall success. 

Closing Thoughts 

Each and every day, the world faces challenges that are unimaginable, to say the least. While we, those fortunate enough to work and earn, cry over minor things, there are people who are struggling to live, eat, and survive. There might be people around the world who are stuck within the walls of poverty, war, and oppression.

Entrepreneurs have a unique opportunity to make a difference through meaningful philanthropy. By aligning their business goals with societal needs and leveraging their skills, resources, and networks, they can become the most powerful people in the world for positive change. 

Being a philanthropist doesn’t require financial wealth, it only demands a genuine desire to contribute and create a better world.