Business And Giving: Business Owners Show Philanthropic Generosity

Have you given much lately? In terms of your philanthropic dollars, are you generous or sort of frugal? If you’re like other business owners, you are probably rather generous when it comes to spreading the wealth.

For business owners, personal passion -- not personal reward -- drives philanthropic involvement, according to a survey released by SunTrust Bank Private Wealth Management. Business owners cite "helps make a positive change" as the top reason for charitable giving. Nearly three-fourths of respondents say satisfying their personal moral beliefs drives their philanthropic impulses. And fewer than half say they give to receive tax credits; to bring positive attention to their business; to network; to establish a legacy; or to gain recognition.

Here are some interesting figures that reflect the habits of well-intentioned business owners:

• Seven in 10 agree that "even if there is an economic downturn that moderately affects my business, I plan to keep my current level of nonprofit or charitable giving in the coming year."
• They are "charity multipliers," in that more than half encourage employees to donate time and/or money to company charities. And one in three say they will match donations made by employees.
• Their generosity extends beyond simply giving money. Business owners are a critical component of the nonprofit world as members of nonprofit boards.
• About half (47%) of respondents sit on the board of a philanthropic organization, particularly those that focus on:
• religious concerns (21%),
• arts/culture (18%),
• children's needs (18%),
• healthcare issues (17%).

"Business owners are extending their generosity beyond donations and board or event involvement," explains Johnston. "Many recognize the importance of planning for the future by incorporating philanthropy into their financial plans with the inclusion of nonprofits in their wills, engaging in planned giving and establishing family foundations."

It has been emphasized over and over again how much of an impact small businesses make on the U.S. economy, and it’s worth noting that the impact of business owners’ generosity is a crucial factor as well. Business owners are nothing short of generous, so cheers to all of you!