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. This can be, for instance, 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.
A company can benefit from those and having financial advantages. Indeed, most governments are encouraging philanthropy and therefore trying to attract companies to do it. For that, the widely-spread technique is to put a financial system that is attractive for companies and give them tax exemptions on their giving. This is also an advantage of corporate charity.
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 either 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.
Maximising the effect of the corporate giving
In order to maximise the benefits that the enterprise may gain from corporate philanthropy, the company has to carefully choose the project to support.
- Audience: If the goal is to attract new customers or to create loyalty towards the brand, one of the selection criteria might be related to the buyer persona and the interest of this one. This will create familiarity and have a great impact on their minds.
- Location: The idea is also that people see that the company is having an impact. It can either promoted through medias, or it can be in the very same area where the target is living. This way, it will become even more real for them.
How to give power to your corporate donations?
The benefits of corporate giving are now cristal clear. In order to gain them, you have to choose the right project and put the best processes in place in terms of management and reporting. Optimy is a software for community investment management that helps the enterprises having an impact. Want to know more about it? Then check out the information here.