After a Kennesaw State University and EY statistical study, some surprises realities have surfaced regarding a vast majority of family businesses. 81% of the largest family business in the world practice philanthropy regularly. The makeup of philanthropic focuses are almost divided 50/50 between charity giving and community service. Almost half of which have their own family foundation, and 37% are planning to increase their charitable donations.
What has drawn so many family businesses across the globe to philanthropy as a partner in yearly operation? Family businesses have found that philanthropy ties its members to a common cause outside of the bottom line within their businesses. It also demonstrates a family’s values, which they pass along to their business entity. These sets of values are not limited to merely those members of the family within the business, but allows for all relatives to participate in the organization’s undertakings. Also, across the world religion plays an enormous role which often promotes charitable services or donations.
Another benefit in family businesses investing in philanthropic work is to inspire the younger generation to become involved. Our global community is one that has become much more motivated to help those in need, and activism businesses are the most recent ways for Gen X and Y to give back. Family organizations can also use this avenue as a training ground for the next generation of business leaders. Allowing the youth to explore their entrepreneurial instincts, they can hone skills that will apply to the family business later on in life while doing something good for those less fortunate.
Family foundations have picked up in popularity recently and for good reasons. Such organizations leverage a businesses name and values, while providing services or aide to those in need. They are a great way to involve and entire family entity or community in a common cause towards the greater good.
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