Why I'm not donating to your charity, or my personal philosophy on how to ethically run companies.
We've all been there—you walk into a store and someone is standing at the entrance asking you to donate to <insert noble cause here>. It's uncomfortable. It feels like begging, but with a corporate twist. And suddenly, saying no makes you feel like the bad guy.
Let me be clear: I don't have an issue with the cause itself. Feeding the hungry, flying patients to hospitals, training guide dogs—these are all noble missions. My problem lies with how charities operate and, more importantly, how businesses manipulate charitable giving to shift responsibility onto consumers.
The Flawed Logic of Traditional Charity
Why do people start charities? Often, it's driven by good intentions:
- Feeding the poor
- Helping children in need
- Providing medical care in remote areas
- Supporting disaster relief efforts
At face value, these causes "do no harm". But once a charity is founded, it needs money. And when donations dry up, the charity dies. They are a loss centre, period.
Many charities fall into one of a few categories:
- Corporate tax shelters
- Passion projects started by individuals who genuinely care (but struggle with funding)
- Institutions founded by churches, schools, hospitals, or governments
- Family-run organizations designed to provide jobs to immediate family rather than maximize impact (I didn't say nepotism)
Regardless, all charities face the same problem: financial sustainability. The formula is simple:
Runway = money in the bank ÷ daily operating costs
Most charities rely on constant fundraising, meaning they are always at risk of running out of money. This leaves them vulnerable, dependent on donations, and, in some cases, forced to operate in ways that prioritize survival over impact.
Corporations Are Taking the Piss
Picture this: You're at a gas station, buying fuel, and the cashier asks if you'd like to "round up" your total to support a charity. You hesitate—do you want to be the person who refuses to donate a few cents to feed starving children?
But here's the kicker: The company asking for your money is pulling in billions in profit, yet they want you to fund charities. Why? Because it's easier and cheaper to push the burden onto customers than to simply donate from their own pockets.
The critical thinkers in the room will probably be saying something like, well that's a clever hack to provide unlimited runway to your charity. But it's also bloody poor form, if you ask me. Instead of spending money on call centres or employees to solicit donations, corporations have turned frontline workers into unpaid fundraisers (read: beggars), pressuring everyday people into giving.
Would it be so crazy to profit less and give more? Would it be so crazy for a <business model> to have charity built in? Would it be so crazy to build companies that care?
A Better Way: Ethical Business Models
There is a better way. Take Zambrero, for example—a fast-food chain that donates a meal for every meal purchased in their Plate 4 Plate program. To date, they've provided over 88.5 million meals, matching customer purchases out of their own pocket. Instead of guilt-tripping customers into donating, it rewards them with karmic dividends for simply making a mindful purchase. This approach ensures charitable giving is wrapped directly into the business model, making it both sustainable and scalable.
The Future of Ethical Companies
If you're starting a business, do it right. Build generosity into the foundation of your company rather than treating it as an afterthought. Employees should be valued as stakeholders, and companies should operate with a genuine duty of care—not just to their shareholders, but to society as a whole.
Right now, we can't change the laws to force businesses to be ethical. But we can change the conversation. Companies should be judged not just by their profits but by whether they follow ethical guidelines that prioritize people over endless growth.
So next time you're pressured to donate at checkout, remember: Charity shouldn't be a guilt-driven afterthought. It should be a responsibility that businesses take on themselves. And maybe, just maybe, that starts with us demanding better.