Ethical Investors, like the majority of Banks, Building Societies and other financial advisers, earns commissions and receives fees for advice given to clients. This commission forms our income and it is at least 50% of the net profit from this income that we pledge to pass on to groups and charities nominated by our clients.
We are often asked why we give away more than half of our business profits to charity. The reasons are simple. Firstly, as ethical investment advisers, we believe it is important for our business to give financial backing to charities and campaign groups active in fields related to our investment work.
Secondly, giving away half our profits has helped our business to expand. The figures speak for themselves. Thanks to our investors, the amount of money we have been able to give away has risen steadily over the years. Ethical Investors has given over £500,000 to charity since 1989. Clearly, our profit distribution scheme has helped our business, not hindered it. Thirdly, and perhaps most importantly we aren't greedy.
Our clients have chosen a vast range of charitable groups to share in our annual profit distributions, including:
� Animal Aid
� Amnesty International
� Campaign for Nuclear Disarmament
� Centre for Alternative Technology
� Christian Aid
� Compassion In World Farming
� Environmental Investigation Agency
� Friends' Monthly Meetings
� Friends of the Earth
� Dr. Hadwen Trust
� Leeds Rape Crisis Centre
� Missing Persons Bureau
� Terrence Higgins Trust
� Vegan Society
� World Development Movement
When you make an investment using the services of Ethical Investors Group, the Group receives commission from the investment provider as payment for the work it does. Like all financial advisers, we deduct expenses from our income, and so arrive at our profit.
Other financial advisers typically retain all profits. Ethical Investors, by contrast, gives at least 50% of its net profits to charities and campaign groups nominated by you, the investor. So the money we pay to charity comes out of our pocket, not yours. Everyone wins. The charity receives money to help its work. Ethical Investors benefits because investors are encouraged to make investments through our business. And each time you invest, you trigger a donation to the charity of your choice that costs you absolutely nothing.
The profit distribution works like this:
For 2006 it was suggested that we fund a single large project with the bulk of our annual profit distribution. This approach enabled us to contribute �25,000 to a fascinating and completely different project in the Madhuvana Plantations in India. We believe that people, planet and animals all gain from this, and we are proud of what we have been able to achieve. For full details please see the 2006 Annual Profit Distribution Report.