New research shows that the more SMEs give to charity, the better their business performs. On average, SMEs give 1.8 per cent of their turnover, equivalent to £32,000 a year. SMEs that give more than 0.5 per cent turnover are 20 per cent more likely to see an increase in profits, twice as likely to report benefits to company reputation, and almost 50 per cent more likely to improve recruitment and staff retention.
Overall, 67 per cent of businesses who give to charity reported a positive impact on profitability.
Not all SMEs are aware of the benefits, with one in three SMEs (30 per cent) avoiding charitable giving because they fail to see any benefit. But, there is hope – 44 per cent of SMEs would give more if they saw a direct benefit.
The research marks the launch of a new giving platform, Work for Good, which enables businesses to give to good causes in a way that’s good for business too.
In our changing world there is greater expectation from consumers and customers for businesses to make a difference, not just make a profit. This purpose-led approach to business is increasingly important and Work for Good empowers businesses to give to grow – a third (37 per cent) of SMEs claim that charitable giving has helped to attract new clients.
Sir Harvey McGrath, chair of Big Society Capital comments, ‘Businesses can no longer afford to ignore the importance of giving back, and Work for Good is a great way to help them do it.’
Ben Davies, managing director, The Web Kitchen says, ‘We like how Work for Good helps us tell our giving story, to inspire and engage others. Whether that’s to motivate our people who appreciate working for a company with soul, or starting interesting new conversations with customers who may be that bit more loyal as a result.’
Helen Mabberley, head of fundraising at Malaria No More UK comments, ‘Securing corporate support can be very difficult. Work for Good’s magic lies in their ability to bring us interest we wouldn’t otherwise find, freeing up more of our time to focus on the fight against malaria.’
Work for Good also provides the solution for businesses faced with complicated Commercial Participation Agreements (CPAs), as required by the Charities Acts to set out an agreed partnership between business and charity.
Danny Witter, CEO and co-founder, Work for Good comments, ‘Our platform is a catalyst for more businesses to make a real and tangible change in the world. Today clients, suppliers, customers and employees now expect the brands and businesses they engage with to do more. Those that do will prosper. The Work for Good platform helps businesses of all shapes and sizes to give whilst growing their business.’