The topic of the latest episode of the podcast "Economy360°" is business with a human face. Why is charity profitable? Why is a donation ultimately not a loss, but a profit? Is it worth advertising your good deeds? /nginx/o/2024/08/07/16274732t1hbce8.jpg)
Anna Rehema. Photo: Daniel Gilman
The topic of the latest episode of the podcast "Economy360°" is business with a human face. Why is charity profitable? Why is a donation ultimately not a loss, but a profit? Is it worth advertising your good deeds?
They say that kindness always returns like a boomerang to those who help. And not only entrepreneurs benefit, but also the state and the company's employees.
The guest of the podcast is Anna Rehema, the founder of the well-known Estonian non-profit organization Südamete Soojus MTÜ ( Warmth of Hearts ).
Why is it profitable for businesses to invest money in charity? According to the expert, modern entrepreneurs see a number of advantages in this.
Firstly, for some people the image of a socially responsible company, public recognition and respect from business partners are important – all of this costs a lot.
Secondly, in certain cases, businesses that systematically support charitable initiatives enjoy tax benefits.
Thirdly, if sponsorship and good deeds are declared by management as company values, this contributes to team building and employee loyalty increases.
How developed and popular is charity among entrepreneurs in Estonia?
"Local businessmen are generally wary of charity. They prefer to act independently and make targeted donations," says Anna Rehema.
"Some people think that we are liars who launder money and embezzle gold. Some people treat us like the city's crazy people. They say that you can make money, but they make up all sorts of crap," she continues.
The question that some entrepreneurs ask themselves sounds quite reasonable from their point of view: why do we need any intermediaries, various charitable organizations and foundations for good deeds?
"For those who have such a question, it makes sense to start by simply taking and trying to help someone yourself, or holding some small event for a substitute ( children's – editor's note ) home. And it will immediately become clear what a huge amount of work it is, how passionate you need to be about the idea of helping, love children, and be able to find volunteers to make all of this happen," says Rehema.
Typically, charities charge a small fee for intermediary and organizational services (around 10% of the sponsorship amount), which covers the administrative and transportation costs of a specific project.
Südamete Soojus essentially has no staff, and employees are not paid salaries from this money – everything is supported by volunteers who are ready to help absolutely free of charge, emphasizes Anna Rehema.
What else do we talk about in the podcast:
- Is charity always something very personal, delicate? Is it bad manners to brag about your good deeds in public?
- There is an opinion that charity should be carried out directly, not through intermediaries. Pros and cons of direct donations.
- What do charities actually do? Aren't they dealing with problems in the public sphere?
- Is it worthwhile to further encourage sponsors and actively promote charity?
Find out more in the latest episode of the Economy360° podcast.
Music used in the podcast: Keep Calm and Podcast – Step To The Beat.
Economy, finance, investments, taxes, new technologies and innovations in business, employee search, legal issues, crypto assets, security – we talk about all this and much more twice a month in the podcast "Economy360°" on the portal rus.postimees.ee.
