How to Develop a Corporate Grant Strategy for Business Leaders
Developing a corporate grant strategy is an essential part of any organization's philanthropy and social responsibility initiatives. A well-crafted grant strategy can help your organization achieve its mission, meet its impact goals, and build relationships with key stakeholders.
If you want to develop a corporate grant strategy, here’s how to do it. First, let’s talk more about what a corporate grant is and the types of corporate grants out there.
What is a Corporate Grant?
A corporate grant is a financial award given by a company or organization to an individual, group, or organization for a specific purpose, such as research or charitable purposes. Corporate grants can vary in size, scope, and purpose, and may be given in the form of cash, in-kind services, or other resources.
Types of Corporate Grants
Corporate grants are typically awarded to organizations or individuals who are able to demonstrate the potential to make a positive impact in their field. Common types of corporate grants include:
- Community grants support projects or initiatives within a given community, often targeting a specific demographic group.
- Project grants support specific projects or initiatives implemented by nonprofit organizations
- Research grants support research into a particular field or topic
- Scholarship grants support students pursuing higher education or other educational pursuits
- Endowment grants support an organization's long-term sustainability
Creating a Corporate Grant Strategy
Creating a corporate grant strategy can be a daunting task for corporations. It requires a lot of research, analysis, and coordination between multiple departments and stakeholders.
A corporate grant strategy should be tailored to the specific needs of the company and should include a plan for how the company will engage with potential grantees, how it will allocate funds, and how it will measure the impact of its investments.
With the right strategy in place, corporations can ensure that their grant-making efforts are effective and that their funding is making a meaningful difference.
1. Identify potential grantees
Start by researching organizations that meet the criteria of your corporate grant strategy - and align with the social and environmental impact goals for your company. It is important to look for organizations that have a strong mission, clear goals, and a track record of success.
Furthermore, consider the types of causes you want to support, the geographic areas you want to serve, and the populations you want to target.
2. Define your grant criteria:
Make sure to clearly define the criteria for your grants. This should include the amount of money you are willing to provide, the type of project you are interested in funding, and the timeline for when the grant funds should be used. Many corporate grants can be effective if given in a lump sum upfront, but other grants may be disbursed over time based on milestones.
Additionally, consider if you will require any reporting or accountability from the grantees to ensure that the grant money is being used effectively.
3. Create a grant application:
Develop an application process for potential grantees to apply for your grants. This should include the necessary documents and information that they need to provide to be considered, including a detailed project proposal, budget, and timeline.
Make sure to set a deadline for when applications will be accepted to ensure that the process is organized and efficient.
4. Review applications
Carefully review each application to determine if it fits the criteria of your grant strategy.
Make sure to pay attention to the details of each application to ensure that the organization is a good fit for your corporate grant. Consider the organization's track record, the impact of the proposed project, and the qualifications of the people who will be implementing the project.
5. Finalize the selection
Once you have identified the organizations that you want to provide grants to, finalize the selection and notify them of your decision.
Make sure to provide clear instructions on how the grant money should be used and the timeline for when it should be used.
6. Monitor and evaluate
Monitor the progress of the grantees and evaluate the impact of your grants on the organizations and communities you are trying to help.
Consider tracking metrics such as the number of people served, the amount of money raised, and broader outcomes in the communities where the grant money is being used.
7. Report your results
Keep track of your results and report them to your organization. This will help in understanding the impact of the grants and informing future grant strategies. Sharing the results internally can also provide employees with a sense of connection to the important causes that the company is supporting.
8. Adjust your strategy
As you continue to monitor and evaluate your grants, you may need to make changes to your strategy to ensure that it is effective.
Consider changes such as increasing or decreasing the amount of money provided, shifting the focus to different cause areas, or changing the types of organizations you are willing to fund.
9. Celebrate successes
Celebrate the successes of your grantees and the impact that your grants have had on the organizations and communities you are helping.
Share stories and success metrics with your team and your organization to showcase the impact of your corporate grant strategy. This can also be a time to jointly celebrate alongside the nonprofit partners who are recipients of the grants.
Disbursement Options
As part of your corporate grant strategy, you’ll need to decide on how to disburse the grants to your recipients. Most commonly, companies start a foundation to hold and disburse funds to nonprofits.
Why use a corporate foundation?
A corporate foundation is a nonprofit organization that is funded by a for-profit corporation. It works in collaboration with the corporation to support charitable activities that are related to the company’s areas of interest.
The foundation can provide grants to charitable organizations, as well as support employees’ volunteer work, and provide in-kind donations.
Often, opening a corporate foundation takes a great deal of administrative burden that companies don’t have the resources to support. A simpler and more affordable option is to use a Donor-Advised Fund.
Can I use a Donor-Advised Fund as a corporate foundation?
Yes. A corporate donor-advised fund can act as a corporate foundation. A corporate DAF enables granting funds to causes - and by extension, nonprofits - the company supports.
It works by providing donors with a tax-deductible donation to the fund, which they can then use to provide grants to their chosen charities over time. The donor is not required to make the grants immediately, and can instead choose when and how to distribute the funds.
The DAF also provides donors with a way to streamline giving and manage charitable activities.
Open a DAF with Groundswell
Setting up a corporate grant strategy for business leaders is a great way to provide additional funding for projects and initiatives that may not have been possible without this extra source of funding.
With careful planning and research, business leaders can create a grant strategy that best suits the needs of their company and organization, as well as their overall impact goals and objectives.
Groundswell provides corporate DAFs that deliver all the benefits of a corporate foundation without the administrative burden at a much lower cost.
Book a free consultation and learn more about opening a DAF for distributing corporate grants.
Related resources
Unlocking Philanthropy: A Ready-to-Use Corporate Giving Policy for Modern Businesses
Sample Corporate Giving Policy You Can Use Today
In today’s socially conscious environment, more companies than ever are recognizing the value of corporate philanthropy. Not only can a robust giving policy boost a brand’s image and reputation, but it can also play a pivotal role in community development and global betterment. If your company is considering the establishment of a formal corporate giving policy or refining its existing strategy, this sample policy might be the perfect starting point for you.
Pillars of a Strong Corporate Giving Policy
Corporate giving programs range from employer donation matching programs to full blown corporate social responsibility programs with grantmaking and volunteerism. Many companies find somewhere in the middle that aligns with their size, budget, geographic presence and most importantly company values and commitment to diversity and inclusion. But what truly makes a corporate giving policy stand out? Let’s delve into the key features, from donation matching to the strategic use of platforms like Groundswell.
1. Donation Matching: Doubling the Impact
One of the most effective tools in a giving policy is donation matching. This is where companies match employee donations to eligible non-profits, effectively doubling the contribution. Such programs not only amplify the impact but also motivate employees to participate, knowing their chosen cause will receive twice the support.
2. Charitable Stipends: Encouraging Employee Choice
Charitable stipends are allowances given to employees to donate to a non-profit of their choice. This not only encourages a culture of giving but also empowers employees to support causes they’re passionate about. The stipends can be a fixed amount annually or can vary based on the employee’s role or tenure.
3. Dollars for Doers: Volunteering Translated to Contributions
“Dollars for Doers” programs convert volunteer hours into monetary donations. When employees volunteer their time for a cause, the company makes a donation equivalent to the hours spent. This fosters a culture of hands-on involvement and ensures that both time and money are being donated to valuable initiatives.
4. Corporate Grants: Sowing Seeds for Bigger Change
Beyond individual employee contributions, companies can set aside a dedicated fund for corporate grants. These grants can be given to non-profits, research initiatives, or community projects that align with the company’s CSR objectives. Such grants can lead to substantial, long-term changes and foster strong partnerships with community leaders and organizations.
Why Choose Groundswell for Your Giving Initiatives?
Incorporating these elements into a giving policy requires streamlined management, transparency, and ease of execution. This is where platforms like Groundswell come into the picture.
Groundswell offers an efficient and affordable solution for companies aiming to elevate their philanthropic endeavors. Here’s why it’s the ideal choice:
- User-Friendly Interface: Groundswell’s platform is designed for both companies and employees, ensuring smooth navigation and straightforward donation processes.
- Versatility: Whether it’s donation matching, handling charitable stipends, or managing corporate grants, Groundswell offers solutions tailored to each company’s unique needs.
- Cost-Effective: Groundswell provides a comprehensive suite of tools at competitive prices, ensuring that more of your money goes towards the cause rather than platform fees.
- Transparency: Track donations, monitor employee involvement, and generate detailed reports to measure the impact—all in one place.
Conclusion
An effective corporate giving policy is a blend of structure, employee engagement, and impactful contributions. By incorporating elements like donation matching, charitable stipends, “Dollars for Doers,” and corporate grants, businesses can create a ripple effect of positive change. And with platforms like Groundswell, executing these initiatives becomes not just feasible but also highly efficient and cost-effective.
5 Tips to Boost Engagement & Impact on Giving Tuesday
Leverage GivingTuesday to boost generosity
Every November, the Tuesday after Thanksgiving is known as GivingTuesday, which often serves as the unofficial start of end-of-year giving campaigns. This comes on the heels of holiday shopping deals on Black Friday, Small Business Saturday, and Cyber Monday. It is a worldwide phenomenon, inspiring millions to lean into the end-of-year holiday spirit with generosity and compassion. For many charities, GivingTuesday has become their biggest day for donations – and can help resource their ability to have an even greater impact in the year ahead.
For companies, GivingTuesday and the end-of-year giving season offers an opportunity to double down on their commitment to social responsibility, strengthen relationships with employees, and boost their impact in the community and broader world.
At Groundswell, we partner with companies all across the country to design and launch GivingTuesday campaigns – leveraging our easy-to-use platform that makes it easy for employees to participate and send donations to the causes and charities that they care most about. Below are some best practices to boost engagement and inspire generosity during the giving season.
1. Make Giving Easy:
A lot of giving platforms out there make it incredibly hard to donate. Some don’t have all 1.5 million IRS-approved charities listed. Others require employees to navigate through a web of intranet or sharepoint sites to find the giving program landing page. And others require that HR is notified of any donations an employee wants to make. At Groundswell – we are committed to removing all of the friction, and ensuring that employees can find charities easily, through a platform that is accessible from the palm of their hand, so they can give whenever they want to.
2. Launch a GivingTuesday Match Campaign:
Through Groundswell you can customize and launch a special GivingTuesday match campaign in a matter of minutes. Simply pick the nonprofits to include in the special campaign, select the start and end-date for the campaign, and then determine the match – 2x, 3x – along with any overall budget limits, then you’re done!
3. Boost engagement by involving ERGs:
Share nonprofit recommendations from Employee Resource Groups to provide inspiration around causes and nonprofits that matter to your employees. You can feature these nonprofits on dedicated ERG Corporate Spotlights and Campaigns that will be visible to all employees on their Groundswell dashboard.
4. Surprise (and Delight) Employees With A Gift to Give:
Consider sending a surprise “gift to give” to reward those already participating in your giving program (and to incentivize others to enroll). These gifts might be used to further maximize impact through the existing campaign, or to donate to other nonprofits your employees care about. Groundswell’s custom gift feature allows companies to easily schedule and send gifts with little to no administrative burden.
5. Level up with Volunteer Matching:
Groundswell’s Volunteer Matching program – sometimes known as Dollars for Doers – recognizes that some employees may not have funds to contribute, but have time – and rewards them in the same way. It’s an inclusive approach that invites everyone to participate in GivingTuesday, even those who may not be able to donate their own funds.
12 Employee Benefits Survey Questions Modern Companies Should Ask
In today's business environment, having the right and highest performing talent is more critical than ever. With benefits packages playing a vital role in these decisions, how can companies truly gauge their effectiveness? By initiating regular employee benefits surveys.
Scroll down for a free survey template below.
Let's dive in to the importance of asking the following questions.
Is our workforce satisfied with the current employee benefits package?
Gaining insights from "how satisfied are you with our company’s benefits package?" can offer companies a quick pulse on the effectiveness of their benefits. A dip in satisfaction might signal a need for re-evaluation, especially if you're looking to maximize your budget.
How comprehensive are the employee benefits we offer?
Do employees feel that the organization covers a wide range of their needs? Asking, "do you feel our benefits package is comprehensive in its offering?" can shed light on any potential gaps in coverage.
Are we showing true commitment to Diversity, Equity, & Inclusion through our benefits?
Are the company's efforts in promoting DE&I resonating? This can be gauged by asking if the benefits genuinely support diversity and inclusion. If they aren't, here's an opportunity to collect ideas directly from your employees.
Read more about how to make sure your giving program is equitable and inclusive.
Do our benefits reflect our company culture and values?
The question, "do you feel our benefits package supports our cultural values?" will highlight any potential discrepancies in practicing what you're preaching.
Did you know? Two-thirds of employees say it’s important for a company to align to their values.
Are we catering to the needs of a remote or multi-location workforce?
With remote work on the rise, is the company adapting its benefits accordingly? It's essential to find out if employees feel supported, regardless of their work setting.
Would employees recommend the company based on our benefits?
This is an easy one to skip, but it's a great question to ask. See how influential your benefits package is for employee referrals. Determining if employees would advocate for the company based on its benefits can be a key metric for recruitment.
How do specific benefit categories fare?
By querying satisfaction levels across various benefits – physical health, social impact, mental health, financial health, and fringe benefits – can companies discern which areas are thriving and which need enhancement?
What additional benefits do employees desire?
Is there a particular benefit that could make a difference in employee satisfaction and retention? Discovering this can be as straightforward as asking, "if you could choose one benefit not currently offered, what would it be?"
If your workforce desires a more meaningful benefit, see why decentralizing your corporate philanthropy strategy can achieve greater impact at scale.
How often should I send an employee survey about our benefits?
While every business has their own set of unique needs, conducing a quarterly employee survey at minimum can help you get a pulse check.
There will be some natural and unplanned peaks in valleys throughout the year that can drastically affect employee morale and company culture. By proactively seeking feedback through surveys, companies can foster a culture of continuous improvement, ensuring they remain at the forefront of employee satisfaction.
What are some affordable benefit options we can provide employees?
Corporate matching or giving programs can be a low-cost addition to your benefit offering that supports your employees’ unique passions and perspectives through charitable giving and boosts your company’s commitment to social impact. Groundswell offers a comprehensive solution with a simple implementation and nearly zero administration burden.
- How satisfied are you with our company’s benefits package?
- Do you feel our benefits package is comprehensive in its offering?
- Do you feel our benefits package supports our cultural values?
- Do you feel our benefits package supports our commitment to Diversity & Inclusion?
- Do you feel our benefits package supports our remote or multi-location workforce?
- How likely are you to recommend applying based on our benefits package?
- How satisfied are you with our physical health benefits (i.e. health care, sick leave, etc)?
- How satisfied are you with our social impact benefits (i.e. corporate matching, volunteering, etc)?
- How satisfied are you with our mental health benefits (i.e. vacation time, EAP, etc)?
- How satisfied are you with our financial health benefits? (i.e. retirement, student loan assistance, etc)
- How satisfied are you with our fringe benefits and perks? (i.e. fitness subsidies, stipends, etc)
- If you could choose one benefit not currently offered, what would it be?