Let May 1 be a day of giving back: business actors should donate to civic initiatives
May 1, 2020
Responsible leaders provide for 1+1% of their taxes but can also contribute to social initiatives beyond that. This 1% should not be looked for in tax returns, but in everyone's diary, between their good feelings and resources. These are the third 1%. In Bridge Budapest Association, we want May 1 to be May 1% Day, the Day of Giving Back, and there should be no business operator in Hungary that does not donate and encourage, for example, its employees to do the same. The 1% should become a symbol of giving back, and all business leaders should plan consciously with this Third 1% in their lives.
In America, the first Tuesday after Black Friday is Giving Tuesday, and in Hungary, there have been many attempts to make it a regular thing for years. However, while the Friday that encourages consumption now occurs regardless of the season and has made its way into public consciousness and commerce, the day that promotes giving is inexplicably lagging. For example, on this particular Giving Tuesday in America, social initiatives and NGOs can raise half their operating income in a single day.
In Hungary, we also have an extra asset compared to America, for which we are envied. Since 1996, we have been able to allocate 1% of our income tax to foundations and associations. Another 1% can be given to churches or to the priority budget allocation for talent promotion. It is, therefore, desperate that not even half of taxpayers take advantage of this super unique opportunity. The theoretical budget is HUF 32 billion, of which taxpayers donated only HUF 14.5 billion in 2018. HUF 8.3 billion went to NGOs, HUF 4.8 billion to churches, and HUF 1.4 billion to the National Talent Programme. Due to the efficient and modern e-declaration system, the donation rate is further reduced because it has become possible to almost not even look at our tax returns. This way, even more people forget to donate their 1%. Instead, they leave it to the state to spend it.
Why ask? Why not give as a matter of course?
In Hungary, more than HUF 15 billion per year remains in the system due to the non-provision of 1%.
Every year, civilians ask. It is perhaps not an exaggeration to call this more begging. At least that is what I hear, and it hurts my ears. Social media postings are pouring in, and civil society actors are spending lavishly, hoping that the level of donations will still tip the scales in the right direction. But, unfortunately, the business side — the donors, if you like — has not got round to saying I give! The 'Adom az Adóm' ('I Give My Tax') is a sympathetic initiative engaging market players, influencers, and individuals for years to change trends, but breakthrough success is still to come.
A single percent. Almost nothing. For civilians, it could still be the world. Almost nothing to be done for it. It still does not work. If this were to change, for example, it could permanently improve the chances of the civil sector. This money could give hundreds of credible operators a sustainable opportunity to operate.
The importance of intention and 'but why give'?
In these times of crisis, it may seem foolhardy to write about giving more. Many rightly say there is no more to give. But we also know this is not true for everyone, and many business people can afford to give. Moreover, even if we only think of the 1% donation, it is not a question of money but intentions.
Those with that intention care about their environment and communities and feel responsible. They recognize that there are a lot of unresolved problems. The solutions and answers are fewer. They understand that a business operator has a business interest, an individual interest, and a societal interest so that we can live in competitive and lovable environments. The cycle in which we live means that businesses can be both the cause of problems and often the solution.
Social initiatives are taking the lead in solving problems. Often in uncomfortable, adverse circumstances. We care about the 10% who are left behind through no fault of their own or other challenges that affect our quality of life, sense of freedom, and environment. Taking on situations that most of us would say no to. It means acknowledgment and compensation when a business actor supports a social cause within their resources. In turbulent times, in the face of many global and local challenges, what we think about leadership has become particularly important. We need leaders who, looking beyond their plan, are able and willing to listen and act for the benefit of others.
There is also a Third 1%. Will you add it?
The assumption is that responsible leaders certainly donate 1+1% of their taxes but can also contribute to social initiatives beyond that and do so very simply: by donating 1% of their time, their knowledge, their resources, or their income. These are the third 1%.
Marc Benioff, the founder of Salesforce, famously published his manifesto on the new capitalism in the New York Times in 2019, urging the world's business leaders to put meaning before profit as the only way to tackle the world's staggering inequalities. Benioff invented and introduced the 1+1+1 model, whereby his company, Salesforce, "spends" 1% of its equity, 1% of its time, and 1% of its profits on social initiatives every year. The 1% model is a perfect starting point and just enough. 1% of our taxes was our starting point at Bridge, but we came up with a similar idea. If business actors consciously build their 1%, they can catalyze many changes.
In the wake of Benioff, the Pledge1% movement was launched in the US with a similar aim, to get business actors to give back consciously and, in addition to individual and business interests, pay attention to social goods. Bridge's mission is also to foster a business community aware of and understanding social initiatives. We want May 1% Day to be the day from now on when all business operators make sure they consider whether they have earmarked 1% of their tax for social initiatives and whether they have a conscious strategy to support civic causes throughout the year. In Hungary, it is not common for business actors and company managers to stand up for social issues, and only a fraction of company managers have a conscious strategy.
This is why it is of great importance that, at the initiative of Bridge Budapest, huge business communities such as VegyélHazait! ('Buy Hungarian Products') movement, the National Association of Managers, the Bridge Ambassadors for Responsible Business Culture, and the Cool Companies of the Edison Platform are now drawing attention to the importance of standing up for social issues. Never before has there been so much cooperation from the business side, which highlights how much business actors can do to promote social causes and initiatives.
The Third 1% is about simple things available to all of us, but perhaps we have not yet seen them as a resource and a way to support. Giving from knowledge is, for example, mentoring or expert advice. Social initiatives are often less educated in business terms, even though these processes, practices, and development are equally essential to their functioning. Workshops and studies that have become useful in companies' business processes can also provide support. There are countless possibilities regarding the means. Everything a company has that is easily accessible, and surplus is a huge help, whereas as a social initiative, it is a significant effort. It could be anything: furniture, electronic equipment, subscriptions, etc. But it could also include contacts. It may be that with a single phone call or email, a company manager can open valuable new doors for their beneficiaries. Discounts on products or services or even complete exemptions from charges can be a massive help to social initiatives. Accountants, lawyers, translators, software, communication agencies, and other service providers can do much in this way. Even the media can do a lot by providing a platform, as Telex does now. (Thank you!)
1% of the time is 2–3 working days per year, which is a lot when you think about how much can be done in that time. Some companies deliberately define how much their working time is officially set aside for employees to focus on social issues. We have also created a complete Third 1% planner for business actors to make it easier to think through a conscious strategy in 7 steps.
Giving also pays off in the business
Playing an active role on the business side in social initiatives has long been not only a moral issue but also a business interest. It is enough to know the trends in the labor market and the expectations of the new generations towards companies on both the employee and the consumer side.
Giving is possible for those who can afford it, but as we can see, it is not just a question of money. Sharing is easy, and (conscious giving) can also bring business benefits, which is now proven by research: higher profits, better individual performance, more efficient work, and customer satisfaction are the hallmarks of business actors for whom this attitude is self-evident and part of their business culture.
The Original was published on Telex.hu.
