5 ways to increase employee charitable giving in companies
5 ways to increase employee charitable giving in companies
Encouraging Workplace Giving: 5 Strategies for Companies to Make a Difference
In a world filled with uncertainty, one thing remains certain – people are in need. The numbers of individuals requiring assistance are only increasing, yet nonprofits are struggling to keep up with the rising demand. Workplace charity anchors, like the United Way, are grappling with funding shortfalls as more Americans prioritize other financial obligations over charitable giving. It’s no surprise that many organizations are feeling the pinch after a tumultuous few years that included an economic downturn and subsequent wave of layoffs in 2023.
However, amidst this bleak landscape, there is a glimmer of hope. The Fundraising Effectiveness Project reveals that donors who are giving are actually contributing more in aggregate than before the pandemic. Unfortunately, this positive trend is overshadowed by the shrinking total number of donors. Just like any ecosystem, maintaining a healthy donor population is crucial, and a diminishing pool presents significant challenges.
Companies, together with their employees, have the power to bridge this gap. However, rallying support necessitates focused C-suite leadership. Here are five foundational steps for encouraging workplace giving and empowering employees to pay it forward to worthy nonprofits.
1. Make giving through work easy.
If your company hasn’t already implemented a technology-based giving platform, it’s time to get on board. Options such as Benevity and Bonterra (formerly CyberGrants) make giving a breeze. These platforms simplify the process by providing users with identifying information for registered nonprofits. Employees can easily set up one-time or ongoing paycheck-based giving, as well as donate stocks. Moreover, these platforms ensure that 100% of the employee’s donation reaches the chosen organization.
2. Create a culture of philanthropy rooted in your community.
Lead by example, and whenever possible, connect your charitable endeavors with the communities your company serves. When C-suite leaders take a visible role in charitable giving, it becomes an integral part of the organization’s fabric of success. Employees want to feel positive and proud of the places they work, and they look to their leaders for inspiration. As such, their behavior often mirrors that of the leaders they admire.
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While leaders should be applauded for their enthusiasm in supporting their favorite charities, it’s essential to consider whether these initiatives align with the company’s social impact strategy. An unaligned approach can confuse both employees and customers, potentially hindering employees’ giving and volunteering behavior.
3. Tap into work camaraderie to fuel fundraising efforts.
In large organizations, employees often host fun charitable events like golf tournaments, bike races, and spin classes. While it may not be feasible for corporations with thousands of employees to support every personal charity interest or event directly, they can still encourage giving by celebrating success. By recognizing and highlighting employees’ fundraising efforts, companies foster a sense of camaraderie and inspire others to contribute.
4. Highlight timely giving opportunities.
Stay up-to-date with charitable organizations and events that require funding. For example, during Black History Month, showcase organizations that support historically Black colleges and universities (HBCUs). Similarly, after a major natural disaster, draw attention to the American Red Cross. Consider inviting nonprofit leaders to conferences or team meetings to share insights on their organization’s goals and how donations can make a difference. Providing employees with timely, relevant information increases their awareness and encourages them to participate in giving initiatives.
5. Put your money where your mouth is by matching donations.
Nothing demonstrates an organization’s commitment to giving, and more importantly, its commitment to employees, better than offering matching grants for gifts or drives organized by team members. By showing transparency and dedication to giving programs, leadership can meet employees where they are, rather than trying to push them in a direction they may not be inclined to go. Besides, younger employees, in particular, seek purpose-driven workplaces. By promoting workplace giving, companies can genuinely do good for both their people and the broader community.
In a post-pandemic world filled with uncertainty, the need for charitable giving has never been more critical. Nonprofits are straining to meet escalating demands, while traditional sources of funding are dwindling. Companies have an opportunity to make a real difference and create a positive impact. By implementing strategies such as making giving easy, fostering a philanthropic culture, harnessing work camaraderie, highlighting timely giving opportunities and offering matching grants, companies can empower their employees to pay it forward and support worthy causes. Together, we can build a better future for all.
