If you were to look at the huge number of young entrepreneurs who embrace philanthropy, you would see that many of them are the movers and shakers within the world of technology. For example, Mark Zuckerberg at the young age of 27 was already donating over $100 million a year to philanthropic endeavors and since then, that amount has only grown year by year.
If you aren’t familiar with the name, Zuckerberg is the co-founder of Facebook, and that’s a name you’ll surely recognize! But Mr. Zuckerberg isn’t alone in his quest to find ways to donate money because other names, while not as young, are surely as big, if not bigger. From Bill and Melinda Gates to Warren Buffet, entrepreneurs from all walks of life are doing something to make a difference. But why so many, and why now?
It’s a Mindset Prevalent in Society
If you look at one of the most important reasons why Millennials choose one business over another, you will see that this age group with a huge amount of buying power want to know that the companies they deal with matter. They want something more from the products they buy. They want to know that some portion of profits are going toward building a better future.
Whether those commitments are ecology, world hunger, homelessness and other great needs which must be met, Millennials want to know that they are dealing with a company that has a like-minded vision. They will willingly buy from a company that has set up a foundation and endowment before another brand which is only for profit. This age group sees that as greed.
Many of Today’s Entrepreneurs ARE Millennials
That’s the key, right there. Many of today’s highly successful entrepreneurs are Millennials and as such, these are the ones you are likely to see setting up those charitable foundations. From the “Me Generation” has evolved a new era of socially responsible young entrepreneurswho see it as their task to build a brighter future for their world. It isn’t always about business, either. It’s more altruistic than many imagine. Again, as mentioned above, it’s a mindset predominant in global cultures. From Asia to Europe to North America, most of the young and highly successful entrepreneurs gladly share their good fortunes.
Tax Breaks Don’t Hurt Either
Then, there’s Uncle Sam to consider. If you are going to set up a foundation or endowment, that goes a very long way towards keeping corporate taxes lower. Today’s entrepreneur would rather see their hard-earned dollars go to a charity of their choice rather than in the pockets of the IRS who may, or may not, share their world vision. Tax dollars go where government allots them, whereas a charity can earmark funds where they see a need.
And, perhaps when all is said and done, that’s the biggest reason of all. Appropriation. When you know where your money is going, you are more comfortable sharing it. Why are so many entrepreneurs embracing philanthropy? In the end, it’s twofold. They see a need and want a way to make sure that need is met. Giving to a foundation suits their vision and that is the key.