Direct Selling and Philanthropy

Direct Selling works at the grassroots, bypassing traditional retail outlets to bring people an interesting or useful product in the most convenient way possible. It’s greatest strength lies in the fact that distributors work person-to-person, neighbor-to-neighbor, and build community and trust in the process. It is no surprise then that Direct Selling also gives back to those neighbors and communities in which it works.

According to the World Federation of Direct Selling Associations 2015 Report, The Global Citizenship of the Direct Selling Industry, four out of five Direct Selling companies have active corporate social responsibility (CSR) programs (initiatives that benefit society) that donated $72.4 million in 2014.

According to the World Federation of Direct Selling Associations 2015 Report, The Global Citizenship of the Direct Selling Industry, four out of five Direct Selling companies have active corporate social responsibility (CSR) programs (initiatives that benefit society) that donated $72.4 million in 2014. Of those, one in five has had such programs since their inception. Charity events, in-kind donations, volunteer activities, scholarships, exchange programs, and direct monetary donations are just a few examples. Others develop foundations as the official charitable arm of their organizations, while some partner with non-profits in their regions or even globally. Each CSR program is tailored to match the goals of the company, its founder and distributors, while also taking into account the efficacy of a particular program or non-profit.

Philanthropic activities have been a part of Direct Selling since its earliest days, and today it remains a pivotal part of company mission statements and efforts.

Philanthropic activities have been a part of Direct Selling since its earliest days, and today they remain a pivotal part of company mission statements and efforts. Like companies in other channels, Direct Selling understands the benefits and responsibilities of working closely with a community. Such community work attracts and retains a quality workforce by letting them engage in activities that are meaningful to them.

It also improves financial performance, not only in the form of tax deductions, but also in a company’s bottom line. Companies that increased their overall giving and CSR programs saw their pre-tax profits and revenue, according to the 2016 Committee Encouraging Corporate Philanthropy (CECP) report on corporate giving. Customers and potential customers see an institution that is not only about earning a profit, but also wants to engage in making the world a better place for everyone.

Direct Selling companies target a range of causes in their charitable work. The majority, 91-percent, spotlight health and human services programs, while education is supported by 69-percent of companies. Economic development and environmental protection programs are the focus of just over 30-percent of Direct Selling firms, while art and culture are favored by 20-percent. Within those areas nearly 50-percent focus on children in some way, while 17-percent target women specifically.

In 2014, Distributors in the field made donations of $17.4 million, an increase of 21-percent from the previous year.

Not only, of course, do Direct Selling corporations actively strive to benefit their communities, but so do their Distributors. In 2014, Distributors in the field made donations of $17.4 million, an increase of 21-percent from the previous year. Such a dramatic increase is further testament to Direct Selling’s commitment to the communities that provide their livelihood. Such broad-based thinking is part of the very essence of Direct Selling and is an essential element in its continued success.