Build Giving Into Your Success

[Alicia_Schmidt]

 

The profit pledge is flexible — and you can start small.

📍 Where you are

It’s time to put your financial resources to work. This module helps you choose the right profit pledge model for your business — one that fits how you earn, how you operate, and what you want your customers to see.

A profit pledge means committing a percentage of your financial results to a cause. Pledge 1% embraces a fully flexible model — you choose the base, the percentage, and the cadence. The goal is to establish the habit now so giving scales naturally as your company grows.

Not profitable yet? Pledge revenue instead of profit. Pledge per-transaction or per-deal. Start at 0.5%. The pledge is a commitment to give what you can — many members go years before donating meaningful amounts. What matters is that the infrastructure is in place when the money arrives.

The 6 Profit Pledge Models

Model	How It Works	Best For
% of Profit	1% of annual net or gross profit. Simple and clean.	Established companies with predictable margins
% of Revenue	1% of gross revenue — giving happens even in unprofitable years.	Early-stage companies. Harry’s: 1% of sales has generated $12.5M+ donated to date
Per Transaction	A % or fixed amount from each sale, subscription, or purchase.	eCommerce, food, apparel, consumer goods
Per Deal / Client	Donate when a new deal is signed or a client is onboarded.	B2B companies and agencies
Round-Up	Invite customers to round up their purchase to the nearest dollar.	B2C / retail / restaurants — creates a customer-facing impact story
Product Spotlight	Designate one product as your ‘impact product’ — proceeds go to a cause.	Any company — great for marketing and storytelling

How to Choose Your Model — 4 Questions

1. Are we profitable? If yes, % of profit is cleanest. If not, use % of revenue or per-transaction.
2. Do we sell directly to consumers? Per transaction or round-up creates a customer-facing story. B2B does better with per-deal or % of revenue.
3. How variable is our revenue? A Donor-Advised Fund (DAF) lets you set money aside in good years and distribute it later for greater impact.
4. Do we want customers involved? Round-up and product spotlight models invite customers in. Note: when customers are involved, be sure you stick to your model. Round-up is a promise to the customer and the nonprofit cause.

🤖 AI DRAFT PROMPT

Help me choose the right giving model

Not sure which model fits your company? Describe your situation in a few sentences and get a plain-language recommendation — takes 2 minutes to fill in.

Copy this prompt into your preferred AI assistant (like Claude or Gemini), then fill in the [brackets]:

I'm a founder joining Pledge 1% and need to choose a profit pledge model.

My company: [describe in 2–3 sentences — what you do, how you make money, rough revenue stage].
Are we profitable right now? [yes / not yet / sometimes — it varies]
Do we sell to consumers directly, or to businesses? [B2C / B2B / both]
Do we want customers to see and participate in our giving? [yes / no / not sure]

Based on this, please recommend:
1. The best giving model for us and why — one short paragraph in plain language.
2. What percentage to start with (be realistic for a company at our stage).
3. One thing to watch out for with this model.

Keep the whole answer under 200 words. No jargon.

💡 PRO TIP

You can combine models. Many companies pair a profit pledge with a time pledge, or designate one product for impact while pledging overall revenue separately. Start with one model and add complexity only when you’re ready.

📣 COMMUNICATING YOUR PLEDGE

Your profit pledge is a communications asset. Once you’ve chosen your model, it becomes a one-liner on your website and careers page: ‘We give 1% of revenue to [cause].’ Customers, candidates, and investors will notice.

3 Quick Actions

• Decide: profit, revenue, per-transaction, or per-deal? And choose your percentage — start at 0.5% if 1% feels like too much.
• Decide: do you want customers involved in your giving, or is this internal?
• Write your model in one sentence and share with your exec sponsor.

Your model is chosen. Now let’s build the financial and operational structure that makes giving automatic.

Next: Set It Up So Giving Happens Automatically →

“Build giving back into your company mission. Set targets. Include volunteering in annual reviews. Have fun, celebrate success, and share pictures with each other.”

— Solution Junkies team

“Doing it together, in person, reminds us why it all matters as we see the work in action.”

— Ben Haggith, co-founder, Passion Fruit Partners