Charity Beyond Donations - Exploring Effective Business

We make a living by what we get, but we make a life by what we give." - Winston Churchill. Recharity reports that approximately $5 billion of charity fundraising has been generated through workplace giving each year. Moreover, 71% of surveyed individuals have expressed that it is very important for them to work at a company which actively supports charitable causes and volunteering opportunities. In fact, 55% of those who were surveyed indicated they would prioritize working for a socially responsible firm even if it meant taking a pay cut as compared to one with lesser altruistic values. Given these insights, businesses must implement models which not only allocate funds towards charities but also take part in activities such as mentorship programs or campaigns that raise public awareness around certain societal issues.

Evaluating TOMS' Unique Business-Charity Approach

TOMS shoes pledges to donate a third of their profits to grassroots causes around the world, primarily focusing on addressing mental health issues. Their motto – “One for One” - illustrates how every pair of shoes purchased by consumers is matched with a donation in kind that goes towards charitable projects or cash equivalents. As highlighted on their website, the TOMS brand stands out among other charity businesses due its commitment of giving back: In 2022 they donated $1.7 million of which 55% went directly towards initiatives that focus on improving mental health outcomes all over the world. To commemorate World Mental Health Day on October 10th, TOMS announced their new “10x10 Project” which granted 10 organizations working in this field up to $10K each, enabling them to do more and make a greater impact.

Examining Different Business-Charity Models

The Buy One Give One (BOGO) model has been popularized as of late with companies like TOMS providing shoes to communities worldwide. City National Bank highlights that when consumers within developed nations purchase products from BOGO organizations, the company responds by sending similar items to people who don’t have access within developing countries. The Buy Some Donate Some (BSDM) model allows businesses and other organizations donating portions of their profits into a cause which they find worthy, while still allowing the company revenue. There is also the Multi Purpose Mission (MPM) option, which involves making sure any strategies adopted ultimately align with achieving a charity goal during a set amount of time.

To ensure success, businesses need to devise correct organizing processes and planning support using various strategies, one of which is Lean Portfolio Management (LPM). Experts highlight that LPM is based on the lean principles which have been developed over the decades in order to improve efficiency and value in various domains of business – including charities seeking to optimize their portfolios of projects and initiatives. The benefits of lean portfolio management are also numerous as it focuses heavily on aligning investments with strategic objectives within the portfolio management system, allowing funds raised by charities or nonprofits not only reach but ultimately better serve their beneficiaries’ needs.

Ultimately there are some great business models that can be tailored specifically for each charity's finances once assessed and analyzed based upon our financial situation which will vary going forward too. Using different business strategies such as implementing LPM can help you accelerate your journey towards success by helping you make informed decisions, manage resources optimally, and most importantly create more value from all your initiatives and projects.