Debunking Misconceptions: Why Small Businesses Are a Big Deal for Charities

At Work for Good, we work closely with our charity partners – from household names like Mind, Shelter and WWF-UK to smaller organisations like Bloody Good Period and Ocean Generation. We’re constantly listening, learning, and evolving our platform to meet their needs and those of their supporters.

Many of us have also spent our careers in the charity sector, so we understand the everyday pressures of fundraising. And as a small business ourselves, we know first-hand the power and potential of small businesses when it comes to charitable giving.

With over 5.6 million small businesses in the UK, this is a supporter group no charity can afford to ignore. Many are actively looking for ways to give back – and collectively, they could raise millions of pounds for good causes.

Yet we still hear some common misconceptions that can get in the way of building these valuable relationships. So let’s clear up a few of the biggest myths we hear – and explain why they don’t hold up.

If you want to learn more about how to engage with businesses, be sure to check out our blog giving you three top tips for successfully engaging with businesses.

1: “Small business” means small income generation

Not true. The size of a charity is measured by income, but the size of a business is based on employee numbers – so a “small” business might still be bringing in significant revenue and have generous fundraising goals.

2: Startups need to be kept at arm’s length

Startups are often seen as too young or unpredictable to build partnerships with. But many of today’s most successful companies – think Monzo, Bloom & Wild, Airbnb – began life as small, agile startups.

The most innovative and values-led businesses are often the quickest to adopt new ideas, including aligning their growth with social impact. That makes them ideal early partners for charities who are open to new approaches.

3: Sole traders should only be treated as individual donors

Small businesses include sole traders and freelancers – and many of them already support charities as individuals. But here’s the opportunity: these supporters also run businesses, which gives them the ability to give more, more consistently, and to raise awareness at the same time.

In fact, sole traders using Work for Good give on average £5 more per month than individual donors – and they can add Gift Aid too. If a donor told you they wanted to give £50 every month, no strings attached, you’d say yes, wouldn’t you? So why treat them differently just because the donation comes through their business?

4: Small businesses only care about profit

Today’s small businesses are driven by more than just profit – they care about people, planet, and purpose. In fact, purposeful business is increasingly essential for long-term success, particularly for younger entrepreneurs and consumers.

Now is the time to harness this energy. By engaging small businesses as fundraising partners – and making it simple for them to give through their sales – charities can tap into a sustainable, growing income stream that benefits both sides.

Takeaway:

Sales fundraising through small businesses isn’t just a “nice to have” – it’s a growing, powerful movement. At Work for Good, we’re here to help you understand the opportunity and connect with the businesses that want to support your cause.

If you haven’t started engaging small businesses yet – now is the time to begin.

This blog was written with the help of AI tools.