C-Suite: Guilt-free Goodness

Pilanthropy is for the common good. Investors, charities, and the communities they serve all benefit. Too often, philanthropy is seen merely as a transaction, whether the investor is an individual or a business enterprise.

Philanthropy is a bilateral relationship driven by shared values. The investments that truly transform are donor driven. The first principle of The Eight Principles is donors are the drivers. Donors drive philanthropy not with their money but with their values, their visions.

Businesses feel compelled to contribute in order to appear as a “community player”, while charities reinforce this impression by using guilt as motivation. Giving in response to a blanket demand defeats the true goals of philanthropy while generating mistrust between giver and receiver.

Businesses, whether privately held or public, best use philanthropy as a strategic investment in the communities they serve. Wisely directed, it is one of their most powerful tools for both community good and business growth at their disposal. When your business uses its giving as investments for directed good that enhances both the community and your business, the results are a dramatically improved business climate and a higher quality of life. Truly, this is the “win-win”. Strategic philanthropic investments, which are reflective of your business’ larger societal goals and values, create a synergy of community and commercial growth, which is unbeatable.

Corporate philanthropy, which is truly strategic, begins when your company leadership comes to terms with your corporate values and how those values impact the communities in which you do business. Once these are clear, the decisions as to which charities to support and to what degree become reasonable and rational for the community and strategic for your business.

Driving your philanthropy with a clear set of corporate values avoids the angst created by knowing that you can’t support every charity which makes a request. Trying to do so dilutes your impact and is an exercise in futility.

When a charity makes a request, put it through the lens of your corporate values and goals.Philanthropy is about having positive impact — on your community and your business.

Resist the temptation to fall for the “general good will” or “marketing and awareness” traps. There are places for marketing and awareness.
See your charitable gifts as investments. Expect a return, not something in return. You don’t need another event, sponsorship, or awareness banner. Those things are for marketing.

Strategic philanthropy transforms your community while strengthening and growing your business. Be clear on the societal outcome you expect. Demand accountability. This creates a natural competitiveness between charities.

Charities must approach a business with a grant proposal knowing the company, it’s goals and it’s values in advance. You’re not seeking a handout. You want an investment. Be ready for the company to expect clarity on outcome and to demand accountability. Don’t think of a business as the nameless entity with money. By approaching a business with a gift or grant proposal aligned with the company’s goals and values, you’ve placed yourself in the top 5 per cent of charitable organisations. You go to the head of the line. Your chances of receiving what you ask improve dramatically. Fundamentally, philanthropy is about people. Never forget this.