In a nutshell, 47 percent of small businesses (SMBs) or small-business owners (SBOs) plan to give more to charity this year, 49 percent plan to donate the same amount, and 90% of donations are to support local causes.
As a social network for small businesses, it was a great opportunity to collect this data and shed light on the engine that fuels 50% of the nation’s GDP. It was also heart-warming to see that the ‘local business down the street’ gives over 10 percent of their profits, yet the top 1-percent give only 2.8 percent of their discretionary income.
Large corporations get exposure for their sizable charitable donations. Their contributions are indeed generous, but when you look at giving as a percentage of profits, small businesses give more. It’s important to shine the light on these overlooked entrepreneurs who understand the importance of giving back, and the impact they have on their communities on a daily basis.
Gifts Come in All Sizes and Shapes
Of the nearly all businesses surveyed who plan on giving, the majority (81 percent) plans to give donations in the form of cash, while 75 percent will give goods or services, and 67 percent plan to give their personal time.
Small and medium businesses’ giving preferences also suggest a strong sense of community and focus on local needs. Human services, such as food banks and shelters, was the top charity of choice for 77 percent of respondents; 46 percent will give to youth groups, and 41 percent will give to community development organizations.
By contrast, wealthy philanthropists concentrate their giving on colleges, universities and the arts. In a study that examined giving habits of the 50 largest individual gifts to public charities in 2012, not one gift supported a social service organization, while 34 gifts went to elite educational institutions like Harvard, and nine went to museums and arts organizations such as the Metropolitan Museum of Art.
