Giving is something that most people do after they’ve made money. But to give away all your profits from a business you’ve created—who does that?
More than you might think actually.
You likely have heard of Newman’s Own, a multi-million dollar food group that gives away 100% of its profits.
In fact, Newman’s Own led the years of efforts for Congress to enact the Philanthropic Enterprise Act that allows businesses to give their profits to charity without the corresponding tax hit.
Today, there are 30 businesses around the country that give away 100% of their profits, according to Michael Anft’s “The 100-Percenters” article in June’s edition of The Chronicle of Philanthropy.
This unique group of companies includes the following:
- Ajiri Tea, which gives away 100% of its profits to support Kenyan orphans;
- Bellafina Chocolate, which contributes it profits to charities that serve orphans and women recovering from addiction;
- Finnegans Brew Co., which donates cash and food to charities in the Midwest;
- Fetch Eyeware, which donates 100% of its profits to animal welfare groups;
- Best Boy & Company, which sends its profits to help children and families along with the Red Cross, Doctors Without Borders, etc.
Is the all-profits-to-charity business model a growing trend?
Paul Godfrey, a professor at Brigham Young University, projects that by the year 2027, there will be 500 businesses that give away their profits, according to the Chronicle article.
Whether the trend catches on remains to be seen, but perhaps an equally important question to answer might be, “Why not?”
Photo by Louis Hansel on Unsplash
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Published July 23, 2019
Topics: Family Business