Businesses have long supported nonprofit organizations through corporate giving programs. These philanthropic programs allow employees to give back to their communities. In recent years, corporate philanthropy has grown considerably.
More than 60 percent of the largest corporations have some form of giving program. According to the nonprofit research site, Candid, corporate donations exceeded six billion dollars in 2020. This figure is expected to grow by the end of 2021. Furthermore, companies can demonstrate their values through the types of missions and entities they support. This can help a business attract both clientele and talent. There are also tax advantages for companies for giving.
Corporate giving programs exist in many forms. Most companies incorporate several of these strategies into their philanthropic model. Donation matching is a popular strategy, first introduced by General Electric in the 1950s. First, employees give recurring donations to their nonprofit of choice. The company then agrees to donate a set amount based on every dollar of employee donations. While most companies match $1 for every dollar, some offer as much as $3 for every dollar. Match programs donate as much as $3 billion to the nonprofit sector every year.
Some companies extend matching programs to nonprofits. In this case, the corporation will match whatever the nonprofit can secure through its fundraising efforts. This kind of program can help a nonprofit raise funds, as donors can better perceive their impact and are incentivized to increase their donations.
Another way to enact corporate giving programs is by establishing incentives for employee volunteering. Some companies provide all employees with paid time off to use towards volunteering.
Other businesses may host fundraising events that encourage employee participation. Activities like charity runs can help the community while building camaraderie between employees.
Companies can also host holiday-themed events. For example, food drives during Easter and Thanksgiving or toy donations during Christmas.
Corporate giving programs can also involve clients and customers. Retailers often ask customers at check-out if they would like to donate a small amount to a nonprofit. Businesses may also allocate a certain percentage of sales towards a donation. Advertising this intention can persuade customers to purchase those products.
Two very popular corporate giving strategies include in-kind donations and sponsorships. In-kind refers to donations of items that have a monetary value. Companies can provide free services or goods as in-kind donations. Common in-kind gifts include clothing, advertising, and food.
Professionals can also donate their services pro-bono. This is common practice in the legal and medical fields. If it applies, companies can also contribute to the community by providing free training and internship programs. These public-private partnerships often occur between businesses and local schools or workforce development programs.
Corporate sponsorships are an agreement between a nonprofit and a business. In exchange for a sizable donation, the nonprofit will display the company’s logo during a high-profile fundraising event. This strategy works best for nonprofits that align with a business’s marketing and branding. A home building firm may sponsor a fundraising event to end homelessness, while restaurants and supermarkets partner with organizations tackling hunger.
