What Is Corporate Philanthropy and Why Should You Care?
If the words "corporate philanthropy" call up images of pink ribbon campaigns, big donations to very visible causes, and big brands improving their image through charitable donations, hang tight.There's a lot more to the picture than big-dollar donations to well-known charities and causes. In today's business world, businesses of all sizes and in all sectors are committed to giving back to their communities through some form of charitable giving — and "charitable giving" takes on many forms.In fact, as of 2021, 85% of U.S. companies have a formal corporate giving program in place, and they donated a combined $20.77 billion to charitable causes.But what is corporate philanthropy, exactly, and what are the best ways for your company to give back to the community? The answers to those questions are evolving as a society — and employees — become more knowledgeable, engaged, and interested in how the companies they deal with affect the world around them.
What Is Corporate Philanthropy?
Corporate philanthropy refers to activities and investments voluntarily made by businesses to make a positive impact on the community around them. That's a very broad umbrella. It covers everything from giving money to donating expertise and encouraging employees to volunteer for community organizations. If your company hosts a food drive for Thanksgiving, buys uniforms for a local soccer team, or offers a matching donations program for charitable giving, it is engaging in corporate philanthropy. Learn more about corporate giving and why it's important in our resource section.
Who Benefits From Corporate Philanthropy?
The benefits of giving back are many, and not just for the organizations on the receiving end of donations. The business also reaps benefits, as do the employees and the general community. In a world where consumers increasingly expect companies to be socially responsible partners in our world, having a formal corporate giving program in place is a vital part of doing business. Charitable donations aren't just a sunk cost of doing business, though. There are clear benefits for the company when they make the choice to give back. Those include:
- Improved reputation of your brand
- Higher employee engagement and satisfaction
- Higher employee retention
- Improved employee recruitment
- Stronger customer loyalty
- Reduced taxes for your business and employees
7 Types of Corporate Philanthropy
The face of corporate philanthropy has been evolving rapidly, especially in light of the last few years of upheaval and technological advances. These are the seven most common forms of corporate giving. Many companies engage in more than one, and many more are rethinking their strategic corporate philanthropy plans as corporate social responsibility takes on more importance to customers and employees. More on that later.
Employee and Board Stipends
Some corporations provide cash stipends to employees or board members, which they can donate to the charities or causes of their choice.
Volunteer Support
Companies may organize, support or give paid time off to employees who volunteer for organizations in their community. The support may be technical — an accounting firm may provide training and expertise to a startup nonprofit, for example — or more general, such as gathering a team to help paint houses or build playgrounds in the neighborhood.
Corporate Sponsorships
The Little League team, a fundraising event by the local food bank, a fashion show put on by a local charity — these are all examples of businesses using corporate sponsorships as part of their overall corporate philanthropy strategy. The corporation makes a donation to charity in return for being prominently mentioned during the event.
Community Grants
A company may offer grants to community organizations that apply for them and meet specific criteria to qualify. Walmart, for example, offers grants ranging from $250 to $5,000 to local community organizations. Often, the grants are given through a foundation established by the company for the purpose of making corporate donations.
In-Kind Donations
In-kind donations are donations of goods or services instead of cash. This type of donation is more common among smaller businesses, such as restaurants donating pizza to a local homeless shelter, or providing coffee and donuts free of charge to a weekly parents' group meeting. Similarly, many companies donate a "portion of x sold" gifts to charity. Stop and Shop, for example, donates a dollar to a local organization for each reusable shopping bag purchased by customers.
Donor-Advised Funds
Donor-advised funds — DAFs — are a variation on making grants to charities and causes through a foundation. In a nutshell, a DAF is like a personal charitable giving account, similar to a health savings account. The donor can make donations at any time and receive an immediate tax advantage. The funds sit in the DAF until the donor decides to disburse them to the charity or cause of their choice. DAFs offer several benefits that make them the fastest-growing charitable giving vehicle in the U.S.
Matching Donations
We saved this one for last because matching donation programs are among the most common corporate giving programs — 9 out of 10 companies have employee matching programs. Traditionally, an employee makes a donation to a charity or cause, and then either they or the nonprofit submits a form to the company, which then makes a second donation to the charity, effectively doubling — or sometimes tripling — the original amount. Despite their popularity, matching gift programs account for only about 12% of cash donations received by nonprofits, and an estimated $4 to $7 billion in matching gift money is never distributed. That's because the entire process can be cumbersome, both for your HR department and for the nonprofit receiving the donation.
A New Kind of Corporate Philanthropy — Philanthropy as a Service
Groundswell believes that it's time to rethink how matching donations programs work. Groundswell makes it easy for companies to launch a charitable giving program that takes advantage of all the benefits of a DAF for them and their employees. The Groundswell platform unlocks the potential of DAFs reimagining corporate philanthropy using the x-as-a-service model. Philanthropy as a service — PHaaS — lets you skip the complicated process of setting up a foundation, hiring accountants and handling all the day-to-day nuts and bolts of managing a charity. Instead, you get a simple, transparent platform that allows your company and your employees to support the causes they believe in without all the friction that accompanies traditional matching donation programs. Your company reaps the benefits of having a defined charitable giving program. Your employees are more engaged, with their privacy protected and their autonomy honored, and the causes they support get their donations without the hassle of chasing down the matching funds. It's a win-win-win solution that empowers everyone in the equation.
Final Thoughts
Corporate philanthropy has evolved over the years, and it's evolving faster than ever thanks to technological advances and changing social attitudes. If you're ready to take the next step in corporate philanthropy, reach out to us to learn more about what PHaaS can bring to your company.
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?