“Serving the Community with Corporate Philanthropy”

Serving the Community with Corporate Philanthropy: 3 Tips

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Corporate social responsibility (CSR) has become a hot topic recently, with businesses and corporations flocking to demonstrate their commitment to bettering the world. Corporate philanthropy, where they give back to the community, is central to these efforts. In fact, the top ten corporations give more than $2 billion annually to nonprofits.

Corporate giving is an excellent next step if your business is interested in serving its community beyond CSR initiatives like employee wellness programs and sustainable business practices. Let’s explore three tips for implementing corporate philanthropy at your organization.

Why should businesses give back to the community?

According to Aly Sterling Philanthropy, corporate philanthropy provides the following benefits for businesses:

  • Greater community visibility. Your philanthropic efforts are a signal boost to your community, helping you engage more potential customers. This gets more people talking about your business, increasing sales and boosting revenue.
  • Increased customer loyalty. Customers love to shop at socially responsible businesses, and corporate philanthropy demonstrates your commitment to bettering your community. Through giving, you’ll increase loyalty—this means more repeat business and even increased membership purchases.
  • Improved employee engagement. Employees appreciate working at socially responsible companies—for example, 87% of employees who volunteered for social good causes with their companies reported an improved perception of their employer.
  • Enhanced talent recruitment. 86% of employees want to work for a company whose values align with theirs. Corporate philanthropy showcases your company’s values, helping you attract top talent eager to work for a socially conscious company.
  • More marketing opportunities. Nonprofits and other community organizations may be looking for business partners to host events and launch programs. In exchange for your help, they’re usually willing to include your company’s branding on marketing materials, resulting in heightened visibility for your company.

All businesses, large and small, can participate in corporate philanthropy and reap these benefits without breaking the bank. Simply explore our tips and consider what your company has the capacity to take on.

1. Align philanthropy with your company’s values.

Before starting any corporate giving program or initiative, pinpoint your mission and core values. Read over them and brainstorm what types of corporate philanthropy would best fit them. This practice ensures any program you undertake will fit within the broader scope of your organization, furthering your goals and reinforcing your mission.

Let’s look at a few examples of different businesses, their values, and the philanthropic initiatives they might undertake:

  • Gym
    • Example values: Health and wellness, inclusivity, empowerment
    • Corporate giving ideas:
    • Teach discounted or free fitness classes at the local community center
    • Organize wellness events like charity runs
    • Create short fitness routine videos the community can access online
  • Tech Company
    • Example values: Innovation, collaboration, education
    • Corporate giving ideas:
      • Offer scholarships in STEM education
      • Host a summer coding camp for high school students
      • Sell software and equipment to nonprofits at a discount
  • Restaurant Chain
    • Values: Sustainability, customer satisfaction, community
    • Corporate giving ideas:
      • Minimize food waste by donating to soup kitchens or food banks
      • Purchase ingredients from local farmers and vendors
      • Cater a community event for free once every quarter

On top of aligning philanthropic programs with your values, survey key stakeholders like employees to see if they have any ideas or interests. They can point you in the right direction and give suggestions you might not have considered.

2. Empower employees to give back.

Corporate philanthropy generally falls into one of two categories: workplace giving and direct giving. In the former, businesses encourage employees to give back to the community by implementing specific initiatives, such as:

  • Matching gifts. In a matching gifts program, businesses match donations made to eligible nonprofits by employees, usually at a 1:1 ratio. Nonprofit eligibility is set by the business itself, making this a powerful tool for encouraging employees to donate to causes important to your business. You may even adjust the matching ratio to further incentivize donations—for example, your usual match may be 1:1, but it may be 2:1 for education-related nonprofits.
  • Volunteer grants. With volunteer grants, your business will donate to nonprofits that your employees volunteer with for a set number of hours. For example, you might donate $100 if an employee volunteered at that nonprofit for over 25 hours within a year. Similarly to matching gifts, you can expand eligibility requirements and donation amounts to incentivize employees to volunteer at organizations that align with your philanthropic interests.
  • Payroll deductions. If you’re familiar with tithing to a religious organization, payroll deductions are very similar. Employees automatically donate a portion of their pay to nonprofits, allowing them to support an organization regularly. Your business may need to invest in payroll deduction software to enable this option for employees.

These three programs are just the starting point for empowering employees to give back. On top of them, you can get involved with philanthropy by hosting employee events dedicated to helping the community. This usually takes the form of group volunteering activities, where employees spend a day volunteering for a community cause. These don’t have to specifically relate to your business as long as they improve the community in some way—for example, a tech company might host a clean-up day to remove litter from public spaces.

3. Support and launch community initiatives.

Earlier, we mentioned that direct giving is the second main category of corporate philanthropy. In direct giving, businesses invest their resources in supporting or launching community initiatives. Generally, this looks like donating to local nonprofits, smaller companies, and community organizations.

Here are a few ways your business can participate in direct giving:

  • Financial donations. If you have the spare funds, directly donating to local causes is extremely impactful. Plus, you may benefit from tax write-offs when you make these gifts.
  • In-kind donations. If your business doesn’t have the funds to spare, donations of items or services can be just as helpful. For example, a tech company might donate used computers or office furniture to an up-and-coming nonprofit.
  • Sponsorships. Sponsorships are usually a form of financial or in-kind donation, but they’re usually given as part of a specific initiative. For example, if a nonprofit is hosting a gala, a wine company might sponsor the event by providing all the alcoholic beverages for it.

In particular, hosting events is a great way to maximize impact and visibility. For example, you can take Sneakers4Good’s recommendation and host a marathon. During the event, participate in social good fundraising by collecting donations and race fees that you then give to a nonprofit partner. It’s a win-win—your business gets to show off its corporate philanthropy in public, and the nonprofit also gains visibility and donations!

Consumers, employees, and your community expect your business to look out for more than just its profits. With these corporate philanthropy tips, you’re ready to brainstorm and execute a strategy that works for your unique company.