• Background:
    This study was designed to explore the philanthropic perspectives of entrepreneurs as well as their personal and corporate giving philosophies. Specifically, we wanted to understand whether there was a link between entrepreneurs and philanthropy as well as the key motivations behind giving back. In addition, this study explores the criteria entrepreneurs use in selecting charities to support, strategic giving vehicles and their involvement with non-profit boards.

    Methodology:
    The study was compiled from an online survey of 146 entrepreneurs by Harris Interactive between September 17th and October 6th, 2010. The study was conducted in cooperation with Ernst & Young, which invited their Entrepreneur Of The Year® Award Winners Network to participate in the survey. Award winners must be the CEO/Founder, and his or her company must be at least 3 years old.

  • Most agree that being an entrepreneur makes them more inclined to give
    back — and this likelihood increases after 20 years in business.

  • The most important reason why entrepreneurs give back is to integrate
    their personal philosophy for giving into their corporate culture.

  • The idea of "corporate responsibility" seems to resonate more with older
    entrepreneurs, while younger donors focus on how giving makes them feel.

  • Younger entrepreneurs are more likely than their age 60+ counterparts to
    support charities while building out their business, and to feel that giving will
    make their companies more successful long-term.

  • Half of entrepreneurs waited for their businesses to become successful
    before considering philanthropy. One in three were approached by a cause
    and one in four built it into their original business plan.

  • Two-thirds of entrepreneurs describe themselves as quiet/passive donors,
    while just over one-fourth characterize their style as “active/ high profile.”

  • Most entrepreneurs donate money and time, both personally and through
    their companies. Few donate stock — none through their companies.

    Self-described "active/high profile" donors are significantly more likely than
    passive/anonymous donors to contribute their time and make in-kind
    donations.

  • The most important criteria in selecting a charity is that it supports the local
    community. After that, entrepreneurs want to ensure the donated funds are
    used efficiently and the charity has a proven track record of achieving results.

  • Local community and educational charities receive the bulk of donations,
    while environmental causes garner less support.

    Religious organizations are supported primarily through personal, not
    company donations.

  • 4 in 10 entrepreneurs support between 1-10 charitable causes.

  • The majority of entrepreneurs allocate between 1% and 5% of their profits to
    charitable causes.

  • Roughly a third of entrepreneurs currently allow their employees to donate through
    payroll deductions and offer a company match. A similar proportion don’t currently
    offer these but would consider it.

  • Most entrepreneurs surveyed sit on the board of a non-profit, and fully half
    have chaired a board either currently or in the past.