The Philanthropic Family

If you spent just $50 each month at 3 local bricks and mortar stores in your community, you could help pump millions back into the local economy.

This is the basic concept of The 3/50 project, created in March by Cinda Baxter, a retail consultant and professional speaker from Minneapolis. The Chamber of Commerce in my Chicago suburban community has endorsed the plan and it warranted a short article in the Local section of the Chicago Tribune.

According to The 3/50 Project, “for every $100 spent in locally-owned independent stores, $68 returns to the community through taxes, payroll and other expenditures. In contrast, at national chains, only $43 remains in the community.” And when you buy a book from Amazon online instead of at a local book store, $0 stays local. Absolutely nothing. Nobody local gets paid to fill your order. No local sales tax is collected. No local property tax comes due. No overhead expenses like office supplies that get spent at another local brick and mortar business. Nothing.

More philanthropists are starting to focus on economic development as the underlying foundation to other charitable causes. Education, the arts, health care and employment depend on a healthy local economy, local taxes (including property taxes paid by brick and mortar businesses), and local businesses and business owners giving back to their community by supporting the local high school marching band or the girl scout troup. There is such a minimal cost to us–maybe paying $3 for that tube of toothpaste at the local pharmacy instead of $2.50 at the big box store–in return for so many benefits.

While we may continue to support causes we are passionate about with the funds earmarked for “charity,” The 3/50 Project shows us that we can do so much for our community by using other parts of our budget in smart ways.

So the next time you need cough syrup in Mount Prospect, IL, stop in to Keefer’s Pharmacy right across from the train station on your way home (they still have penny candy behind the counter). You can also get your hair cut at the Halo Hair Studio, and I already know you’re getting your ice cream at Cappanari’s. For locally owned businesses in your town, check your church bulletin ad pages, and look up the Chamber of Commerce for your town.

Try it this month–Just $50 you were going to spend anyway, but directed to local independent businesses.