Even when the world’s top 100 billionaires’ net worth continues to increase, a large section of people remains in extreme poverty. Additionally, the rising medical costs prove to be unaffordable for many, including people from developed nations. Many people are dependent on international development organizations and local charities for funds and related services. These organizations provide assistance for shelter, food, livelihoods, and medical treatments through their programs. They often receive funds from charity foundations, high net worth individuals, corporate donors, or aid agencies.
On the other hand, for-profit organizations are generally seen as driven only by endless profit motives with little interest in societal well-being. But the scenario is slowly changing with the advent of a new breed of entrepreneurs. They combine their usual business with a focus on giving back to society, but without compromising on their profits. Unbelievable, right? OneHope Wine is such an enterprise that makes a difference to society with their unique business model.
Capitalist Philanthropy
What is capitalist philanthropy? Is it similar to corporate social responsibility? It refers to a model where a company provides a normal service/product like any conventional for-profit company but with an embedded charity aspect. In normal social enterprise models, the product/service itself tends to be for social impact. Unlike traditional charity or a social enterprise, this creates a triple win for the customer, company and social cause.
Ideally, it is the next step towards the evolution of our companies that care for the people and the planet. Nowadays, ESG ratings (Environmental, social, and governance) are a major determinant of a company’s identity. Both the consumers and the shareholders are vigilant about the social responsibility of any for-profit enterprise. OneHope wine is a company that is a prime example of balancing profit and social responsibility. Let us explore the unique ways in which the company achieves this.
The story of OneHope Wine
Jake Kloberdanz is the visionary behind OneHope wines that combines charity and profitability in a balanced manner. In 2006, while his childhood friend was battling cancer, he realized the potential of products raising charity. This lead to the foundation of OneHope in 2007. With its headquarters in California, OneHope is a seller of world-class wines. It has a wide collection of wines and gift boxes, with each wine variety supporting a particular social cause.
The state-of-the-art winery in Napa Valley produces award-winning wines from organic grapes. The winery also operates on sustainable principles of water conservation, waste management, etc. Many of the wines consistently rate in the 90+ category for its taste. They also make sure that their wines are affordable to many people with a starting price as low as 25 US$.
The consumers have different options to buy their favorite wines through OneHope. Apart from the retail partner shops, they can buy it online individual, combo packs, and gift boxes as per the need. It also features a subscription model and exclusive wine club membership with added benefits.
Redefining Charity -The OneHope Model
The OneHope model has redefined charity with its unique approach to raising awareness and funds for social causes worldwide. Half of the profits from their wine sales go to these fundraisers through the OneHope Foundation. Each of their wine variety is paired with a social cause. It ranges from children’s education, cancer funds, clean drinking water facility, etc. The OneHope Foundation partners with various Non-Governmental Organizations for supporting these works. Each customer gets first-hand information about the fundraiser they support while purchasing every bottle of wine. This is an interesting way of engaging customers in charity while doing the usual business. Perhaps, this makes OneHope a unique model of business in today’s world.
Besides the wine bottle sales, it has dedicated programs for partnering with consumers for charity fundraising. The details of these programs are given below,
- Host a Wine Tasting Session
Persons interested in supporting a particular cause can organize a wine tasting session at their home or office. This can bring together family members, friends, and colleagues to raise a toast for charity. The profits from each wine bottle purchased will be earmarked for this charity. Apart from this, OneHope will donate 10% of the entire profits for supporting the cause. During the pandemic, now it is a virtual wine tasting event where individuals can order wine bottles to their locations and the larger wine tasting event.
- Cause Entrepreneurs
OneHope is creating a network of individuals who believe in the mission of business with a cause. The cause entrepreneurs are given marketing support and other perks to working on their own. They get a 25% commission on the sales of OneHope products and help in creating a multiplier effect. Cause entrepreneurs also help various individuals in hosting wine tasting fundraiser events in their locality.
- Grapeful Club
It is a preferred customer program that allows exclusive and early access to new wine varieties. It allows the customer to increase the impact by an additional 10% donation to a charity they prefer. This helps OneHope to create a loyal customer base that can consistently fund different charities across the world.
The work of OneHope has positively impacted millions of people across the globe. It was successful in raising more than 5 Million US$ for supporting different charity activities. The OneHope Foundation supports different causes such as education, child welfare, medical aid, environment, etc. Through its funds. With a network of 4500 cause entrepreneurs and 11382 non-profits, the work continues.
The OneHope model is truly an innovative method of supporting charity causes. A move from the profit only model to a profit with a purpose can inspire many new-age entrepreneurs while setting up their ventures. In short, we need more such entrepreneurs to make this world a better place.
