Accountancy software company Sage will later this year open The Sage Foundation, which will support charities and social enterprises.
It will operate on the ‘2+2+2’ model, donating:
• 2% of employee time each year (5 days per employee – and Sage has 14,000 employees)
• 2% of free cash flow
• two of Sage’s technology products (Sage One, Sage Life or X3 products) for any charity, social enterprise or non-profit organisation.
The new foundation will operate globally from 1 October 2015.
The company presented the 2+2+2 model as a benchmark and challenge for other FTSE 100 companies, describing it as setting “the standard for Corporate Compassionate Capitalism around the world”.
The model is based on and exceeds the 1+1+1 model created by Salesforce, another global software company. Indeed, Marc Benioff, Chairman and CEO of Salesforce, welcomed the Sage Foundation’s initiative, saying:
“It’s great to see plans for the Sage Foundation and its support for the philanthropic model we pioneered at Salesforce. By integrating philanthropy into its culture on a global scale, Sage can make a difference in the lives of millions of people around the world.”
As well as making grants to create entrepreneurial opportunities for the young and disadvantaged, The Sage Foundation will also make grants to match employees’ charitable donations and fundraising.
The Foundation will not be constituted as a charity. Instead, the company will direct revenues it earns from the non-profit sector to the Foundation. This means that 2% of free cash flow ” is equivalent to revenue gained from non-profit sector in FY2014″.
Sage UK and Ireland Managing Director Lee Perkins, added:
“So many companies treat Corporate Social Responsibility as a tick-box exercise which completely misses the point. Lots of Sage employees are already involved in volunteering and grant programs –we’re extending and building on this. We are passionate about our communities and we want to give our colleagues the tools and encouragement to go out and work with the organisations and causes they really care about. We want employees to bring their values and passions into work with them”.
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