Night of the Living DAF: How Groundswell is Raising Zombie Philanthropy From the Dead
No one likes zombies. They’re noisy. They’re disgusting. Worst of all, they try to eat your brain.But perhaps the spookiest thing about them? They’re mindless. Zombies are automatons who amble along without thinking. Left to their own devices, they would go on like that, mindlessly, forever. Never changing, never helping, never improving.It is this critique of the undead that gets levelled at a form of charity dubbed zombie philanthropy. In this critique, the drivers of zombie philanthropy are Donor-Advised Funds (DAF)s. To quote The Washington Post:This is problematic. We’re in a world where there is no time to waste. There are too many crises facing our country and global community and it serves no one to have money sitting on the sidelines. At Groundswell we’re going to change that by building a platform that will better facilitate these funds and empower donors to make an impact quickly.
WTF is a DAF and who contributes to them?!
A Donor Advised Fund allows donors to put all of their charitable dollars into one single fund, receive an immediate tax deduction, grow those assets over time, and distribute assets to nonprofits of their choice at any given time. It was established in the 1930’s to handle charitable donor-advised fund contributions on behalf of organizations, private individuals, and families. Since then, DAFs have been primarily utilized by the ultra-wealthy. According to the 2020 Donor-Advised Fund Report, grants to qualified organizations from DAF accounts totaled $27.37 billion in 2019, up 15.4% from $23.72 billion in 2018. But considering there are over $140 billion in total assets squirreled away in DAFs, $27 billion is merely a fraction of the impact potential they represent.
Why Do DAFs (Sometimes) Become Zombies?
Donor Advised Funds are popular due to their ease of use. Donors typically struggle with deciding where to direct their philanthropic contributions, especially when large sums of low-value assets are contributed. Managing several beneficiaries while meeting a deadline might be difficult. As a result, one-stop-shop giving simplifies the philanthropic process.Why have DAFs become the target of “zombie philanthropy” accusations? The critiques typically go like this:
- Unlike with private foundations, there is no requirement for minimum distributions from Donor Advised Funds. As a result, investors routinely deposit significant amounts of equity or cash in those accounts with no need to distribute them right away. This means that a DAF’s capital can sit static for years or decades, and never actually reach a nonprofit.
- This is particularly worrisome at a time when nonprofits need funds urgently, not in a distant future.
- Some individuals use DAFs primarily for income tax reductions, balancing their tax bill with their giving, so that the upside, like capital gains, is neutralized. Others use DAFs to pass on money to their offspring, once again with minimal taxes.
With DAFs, people can sidestep learning about the best causes in place of simply dumping the money in a pot on the advice of someone else.We recognize these critiques. Any tax instrument can be manipulated depending on a user’s intentions (we’re looking at you, Peter Thiel). However, we don’t believe DAFs are inherently evil and are instead breathing new life into the zombie philanthropy model.Groundswell reaps the benefits of DAFs without the downsides. And we believe that this approach can be scaled to reach any prospective donor, not just the ultra-rich.
How Groundswell is Raising Zombie Philanthropy From the Dead
Groundswell is built differently.Legacy DAF providers also happen to be massive asset managers. No wonder their platforms are designed to keep money in the DAF, and not move it out to charity. In fact, it’s in their best interest for it to play out that way.However, Groundswell is built to move money as efficiently as possible out of the system and into the hands of charities.The objectives of our platform are aligned directly with the goals of charities – including the goal of disbursing as much money as possible into the community. That’s probably because we were founded by a former nonprofit executive, a key difference in Groundswell vs. the competition.We have no beef with DAFs and not every DAF fund is a zombie. The fact is, when funds are transferred to a DAF, they will eventually finance a program sponsored by the donor, though it may be slow and delayed funding means delayed impact.As we already mentioned, we believe that Donor Advised Funds are not inherently evil – even if they are exploited by a large number of ultra-wealthy individuals and fail to generate as much good as intended. In principle, DAFs can be powerful but, like everything else, they must evolve.That’s why Groundswell is supportive of recent talks aimed at reforming Donor Advised Funds to include, among other things, a minimum annual distribution. DAFs, built and leveraged appropriately, can bring massive efficiencies to the nonprofit sector and the giving of ordinary Americans.So instead of allowing these legacy Donor Advised Funds to shuffle around mindlessly like zombies, let's build an alternative like Groundswell that breathes life back into the Donor Advised Fund and democratizes philanthropy for the 99%.
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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?