Entrepreneurs will give £171m a month to charity if their businesses grow
A YouGov survey of small business owners, commissioned by wealth manager Kleinwort Hambros, has revealed that charitable organisations would benefit from an additional £171m a month if small businesses achieve their goals and grow by 15%.
A YouGov survey of small business owners, commissioned by wealth manager Kleinwort Hambros, has revealed that charitable organisations would benefit from an additional £171m a month if small businesses achieve their goals and grow by 15%. The survey, which questioned over 1000 small business owners throughout Great Britain, also revealed that male entrepreneurs intend to donate more than female small business owners.
When questioned, 44% of small business owners claim they give money to charity organisations every month. On average these give £126 which works out to be £300m a month. If their businesses grew by 5% in turnover, 14% of owners claim they would increase the amount of money they give to charity (this works out as 730,050 businesses). On average, these businesses would increase the amount on average by £73.30, which works out to be an additional £53m a month.
If their businesses grew by 10% in turnover, 15% of owners claim they would increase the amount of money they give to charity (this works out as 827,750 businesses). On average, these businesses would increase the amount on average by £100.21, which works out to be an additional £82m a month.
If their businesses grew by 15% in turnover, 15% of owners claim they would increase the amount of money they give to charity (this works out as 833,250 businesses). On average, these businesses would increase the amount on average by £205.38, which works out to be an additional £171m a month.
The survey shows that millennial entrepreneurs, or small business owners under the age of 35, also have generous intentions if their businesses become more profitable. Only around 2 in 5 (39%) of small business owners aged under 35 said they would not increase the amount they give to charity if their businesses grew by 5%. In addition, 14% of small business owners aged between 45 and 54 said they would increase the amount they give to charity if their businesses grew by 5%.
Male entrepreneurs proved more generous than their female counterparts with 16% of male entrepreneurs who said they would increase their charitable donations saying they would give up to £100 - £200 more a month if their profits rose by 15% compared to just 10% of female business owners. However, when asked what they currently give to charity, 45% of female small business owners said they gave monthly compared to 43% of men.
And 65% of millennial entrepreneurs give between £1 and £20 per month to charity compared to 41% of over 55. However, when it comes to big money, older entrepreneurs lead the way with 2% of over 55 and 3% of those aged between 45 and 54 who give to charity every month giving over £1000 a month to charitable causes.
Rebecca Constable, head of philanthropy at Kleinwort Hambros, said: “People may be surprised to discover how much small business owners are thinking of giving to charities as their businesses become more profitable, but we see it as an exciting development that entrepreneurs are more likely to consider their charitable obligations. In our experience, entrepreneur and business owner clients are placing much more emphasis on philanthropy and impact investing than they would have done ten years ago. It is increasingly an important part of business culture, is more visible and attracts and connects employees.”
She adds that this is because the climate of charitable giving has changed. “We have seen the emergence of new charities which are being run more commercially than perhaps the larger charities were in the past. Today’s business owners can have a direct involvement in the management of their chosen causes and can see the impact of their investment. We believe this is a trend which will continue to grow.”
In the meantime, Kleinwort Hambros* has signed a partnership agreement with Global Philanthropic to help clients donate wealth effectively.
The new partnership, which brings together Kleinwort Hambros’ wealth management experience and Global Philanthropic’s expertise in philanthropic giving and fundraising, is aimed at helping philanthropists and non-profit organisations achieve their philanthropic vision. The service will involve helping clients invest, manage and give their wealth to worthwhile causes.
Commenting on the partnership, Rebecca Constable, head of philanthropy at Kleinwort Hambros, said: “We are seeing more of our clients taking their charitable giving as seriously as their investments. There is a growing requirement to help clients evaluate the strategic challenges around giving, and work with them to devise long term strategies which ensure their giving is as impactful as they want it to be. We’re delighted to be able to offer them access to Global Philanthropic’s advice and support in how to focus their philanthropic activities to make a lasting impact.’
Ben Morton Wright, Global Philanthropic’s president and group CEO, added: ‘Financial sustainability is absolutely critical to our clients’ ability to make a difference, whether they’re philanthropists or non-profit institutions. It is at the top of their lists of concerns. Our partnership with Kleinwort Hambros ensures that they can get the highly skilful, expert technical support they need to effectively invest and manage their financial resources, alongside the strategic philanthropy advice and resources we provide.’
*SGPB Hambros Bank