Definition Of Corporate Giving
Corporate Giving refers to social and philanthropical initiatives launched by a company. The latter can make donations to non-profit organisations like, for instance, to charities, foundations, NGOs and so on in order to support and advocate a cause. The purpose is to deliver social and beneficial impact as well as boosting reputation.
Corporations need to meet the expectations its stakeholders placed in them. And we are not just talking about product quality or customer service. Nowadays customers are more sensitive and informed and they expect their favourite brands to be socially responsible. That is, abide the law and much more. As a matter of fact, they have to set up policies that aim to make a real difference. For instance, they could invest a cut of their profits in social and noble projects, such as hunger-relief projects, scientific research initiatives, educational sponsorship programs and so on. This way, besides the ethical and moral implications, they can help create an impact. Also, they can enhance their corporate reputation and attract those customers who really value a human and proactive brand.
Giving programs, moreover, can consist of monetary donation as well as in-kind contribution, such as digital and hardware infrastructures, facilities etc.
Corporate Giving Programs Benefits
Giving money or material to social and charitable associations can yield many positive and tangible benefits for a company:
- Social impact: helping social projects achieve their mission by donation or proactive participation can boost their impact.
- Brand image: standing out as a noble and committed corporate citizen can improve your reputation.
- Customer loyalty: people love brands who are involved in social activities and they are more inclined to buy from them in the future.
- Differentiation: living in a period where the competition is tight almost in every market, gaining the reputation of a kind and caring corporation can help you differentiate.
Giving Programs can have different forms
Corporate giving can take a lot of forms. The most common one is a gift from a company to a non-profit, through a foundation. It can be recurring or a one-time thing. But there is also employee involved solutions that we are going to discuss further.
There are a lot of corporate giving programs names. Each of them has his own characteristics, that are fundamentals.
Volunteer Community Giving Programs
Some companies are rooting for employees to volunteer in the community. Those can volunteer in a non-profit. Then companies give money to those organisation as a reward for employees efforts. More than an encouragement, this is a way to show involvement in community life.
This exists for individuals, but also for a team of employees. The latest is a great way to do team building!
It’s a way for companies to support the investment of the employees in their environment. As one of them is donating money to a non-profit, he refers to his company. The enterprise will give the same amount as the employee (or more in some cases). The employee doubles (or more) his donation! This is as if companies donate money internally to employees to give to the community. This is a great way for companies to support causes that matter to the people that work there.
Companies can set up automatic payroll deductions on employees salary. Employees have to choose one non-profit proposed by the enterprise. Then the company takes it in charge. This way, it is easier for employees to give. This kind of corporate philanthropy program can really help the brand image.