Small firms take lead in charity work

Supporting charities at Christmas is an annual tradition for many. But as the cost-of-living crisis hits individual donations, Britain’s small and medium-sized businesses are bucking the trend by giving more.

Veronica Bamford-Deane, managing director of Work for Good, which helps small businesses raise money for charities through sales, says: ‘As individual donations start to run out due to the cost of living, we are seeing companies giving more .

“There is a commercial advantage, as 83 percent of consumers look for companies that give back. It also shows customers and suppliers what kind of company they are and what their values ​​are. It’s a way to distinguish yourself from the competition.’

Michelle Ovens, director of Small Business Saturday, which encourages people to shop at local independent stores, agrees.

She says, “Small businesses are at the heart of communities, so even when the going gets tough, they know the importance and value of supporting local charities.”

Work for Good, which has affiliations with 4,000 small businesses and 1,300 charities, published research showing that nine out of ten companies feel it is important to show customers and suppliers that they support good causes, while six out of ten said it is ‘essential’.

The research also indicates that two-thirds of companies are raising money for charities this Christmas, with more planning to do so next year. Companies focus on supporting charities close to home, particularly in the areas of homelessness, poverty and mental health.

Bamford-Deane says, “Giving has so many benefits, such as increasing employee engagement. Fundraising through sales is a sustainable way to do that, as donations increase as the business grows.”

Martin McTague, head of the Federation of Small Businesses, says charity is a central part of the core principles of many small businesses. He adds: ‘Small businesses are more flexible than larger companies when it comes to their ability to give back, and they are embedded in their local communities. Despite the current cost crisis, they are remarkably generous. Small companies have a big heart.’

The federation says 80 percent of its members contribute to local community organizations or charitable causes — mostly by donating their time, providing skills, resources and mentoring.

A growing number of companies are choosing to strengthen their ethical claims through accreditation. For example, the “B Corp” certification indicates that a company meets key standards for things like charity and its impact on the environment.

Wonderful, a digital agency based in Maidstone, Kent, has achieved this certification. It helps small businesses build brands online through social media and websites. Dan Maudhub, Founder and CEO, founded the Wonderful Foundation five years ago.

About 10 percent of the company’s profits go to the foundation that provides financial assistance to new mothers in Maidstone and an orphanage in Malawi. Maudhub also encourages staff to take time off to volunteer and raise money for charitable projects.

Giving: Dan Maudhub has set up a foundation

“We wanted to find a framework to bring this all together and created B Corp that measures companies based on this impact on people, their impact on the planet and their impact on bottom line, so it’s a big commitment for us,” says Dan.

‘Customers and suppliers know exactly where our profits go.’

Giuseppe Bloom-Mangione, from Clapham in South London, launched Muthapuppa, an online dog products retailer that will donate its profits to building a dog rescue and rehoming centre.

He has high hopes for its impact on the country’s canine community. Giuseppe says, “There are thousands of dogs in need of homes, but shelters and rehoming centers are overwhelmed. My wife and I have two dogs and I wanted to start a business where we would combine our passion for dogs with something that could make a difference on the ground.”

Giuseppe’s wife, an events manager, takes care of the family income, so he doesn’t have to take a salary from Muthapuppa, meaning all profits can go towards setting up the dog shelter.

The company donates a percentage of all sales to animal welfare organizations Battersea Dogs and Cats Home, All Dogs Matter and Blue Cross. “We’re not rich,” says Giuseppe. “But dog rescue is something we believe in. Perhaps we can encourage more established companies to also think about what they do for good causes.’

Donations made through a company incorporated as a limited liability company can be classified as an expense, reducing the profits on which tax is paid. Sole proprietorships can claim a 20 percent tax reduction on gifts if a higher taxable person is a tax resident.