Often businesses focus more on making money and less on philanthropy, but for the two founders of iContact, profitability and philanthropy go hand in hand.

In an Entrepreneur Magazine profile, cofounders Ryan Allis and Aaron Houghton discuss the humble beginnings of the email marketing provider and describe their business model, which factors in nonprofit goals. The two University of North Carolina at Chapel Hill alums met in the Entrepreneurship Club in 2002. At the time, Allis owned a web marketing consulting company and Houghton owned a web design and software company. Houghton had developed an online email list management tool, and Allis soon realized how much easier it was than the software he used in his own marketing business. The two then joined forces and formed iContact Corp.

By the second year, the company started turning a profit, allowing the company to engage in charity work. Through a corporate social responsibility policy referred to as the "4-1s," iContact began donating 1% of its payroll, employee time, product and equity to various nonprofit organizations. Allis suggested to Entrepreneur that by generating profits, you can accomplish philanthropic goals without being distracted by having to raise donations, also while growing your business.  

iContact’s revenue catapulted from $300,000 in 2004 to $26.4 million last year. With 190 employees and a 2009 payroll of $10.9 million, iContact was able to make $109,000 in cash donations last year. The company also donated free usage of iContact to nearly 700 nonprofits and gave each iContact employee two-and-a-half paid days off to perform volunteer work, generating 475 days of volunteer work among 63 organizations.

Not only does this article give great insight into the early days of iContact and its great business model, but it also help inspire your small business to  foster a philanthropic community at your workplace.

To learn more about iContact and compare email marketing providers, please visit www.Email-Marketing-Options.com.