Corporate Philanthropy Definition
Corporate philanthropy refers to the many ways a company makes a positive social impact by promoting the welfare of others. This can be achieved through several avenues, such as making charitable donations, providing resources or grant funding, or promoting volunteering by employees.
Benefits of Corporate Philanthropy
Corporate philanthropy benefits both companies and nonprofit organizations. Companies can support nonprofits through a variety of methods, including corporate matching gifts and volunteer grant programs.
However, companies also benefit from strong corporate philanthropy programs. By supporting the greater good and committing to positive social change, companies create a positive public image for themselves, enhance their relationships with consumers, and also foster employee engagement.
Corporate Philanthropy vs Corporate Social Responsibility
While corporate philanthropy and corporate social responsibility may seem interchangeable, there are actually some key differences. Corporate social responsibility refers to a company’s attitude toward being socially accountable and working toward the greater good. Corporate philanthropy programs are ways that companies put their attitudes of social responsibility into concrete action.
The Two Most Common Corporate Philanthropy Programs
#1: Matching Gifts
Matching Gifts Overview
Matching gifts are a form of corporate philanthropy where companies match charitable donations their employees make to nonprofit organizations. Companies will generally match donations at a 1:1 ratio, but some corporations will match at an even higher ratio, such as 2:1 or even 3:1!
How Matching Gifts Work
To secure a matching gift, employees generally follow this process:
- The employee makes a donation to a nonprofit.
- The employee checks their eligibility for a donation match from their company using a matching gift company search tool.
- If eligible, the search tool will populate the necessary information and forms the employee can use to submit a match request.
- The employee submits a request and the company verifies the donation with the nonprofit.
- The company provides a donation match.
Why Matching Gift Programs Are Overlooked
Matching gift programs are frequently overlooked simply because employees are not aware their employer offers a corporate matching gift program. For nonprofits all around, this can be discouraging, leading many organizations to focus their efforts elsewhere.
Grow Your Matching Gift Revenue
For larger nonprofits that generate a substantial amount of matching gift revenue each year, investing in a matching gift automation platform can help secure even more matching gift revenue. This will also minimize the effort needed from their teams.
By automating outreach to supporters based on their matching gift eligibility, large organizations can identify more match-eligible donors and drive matches through to completion.
Learn more about 360MatchPro by Double the Donation, a matching gifts automation platform.
#2: Volunteer Grants
Volunteer Grants Overview
Volunteer grants are another form of corporate philanthropy in which companies provide monetary grants to nonprofits where their employees regularly volunteer. Companies often require a certain threshold of hours to be met in order to issue a grant, but others will offer grants for any number of hours.
How Volunteer Grants Work
To secure a volunteer grant, employees generally follow this process:
- The employee volunteers with a nonprofit.
- The employee checks their eligibility for a volunteer grant by using a company name search tool.
- If eligible, the search tool will populate the necessary information and forms the employee can use to submit a request for a volunteer grant.
- The employee submits their volunteer grant request and their employer verifies the hours with the nonprofit.
- The company provides a monetary grant to the nonprofit.
Why Volunteer Grant Programs Are Overlooked
Volunteer grant programs are often overlooked for similar reasons as matching gift programs: lack of awareness. Many employees who volunteer with nonprofits don’t know whether their company offers a volunteer grant program, which can result in nonprofits missing out on a huge opportunity for additional revenue.
Grow Your Volunteer Grant Revenue
Investing in an automation platform like 360MatchPro by Double the Donation can help large nonprofits secure more volunteer grants without adding extra pressure on their team.
By automating outreach to supporters who volunteer, large organizations can identify more individuals who are eligible for volunteer grants and help their supporters easily submit their grant requests.
Corporate Philanthropy Statistics
Corporate matching gift and volunteer grant programs are incredibly important for organizations to leverage. However, according to recent statistics, nonprofit organizations are missing out on billions of dollars every year from these corporate philanthropy programs.
In the below statistics, it’s clear that many companies take part in corporate philanthropy programs, and donors would give more if they knew these programs were offered. However, the statistics in red indicate how much organizations still miss out on.
Corporate philanthropy programs, including matching gifts and volunteer grants, can be streamlined by leveraging corporate philanthropy software. With this software, your organization will be able to focus more efforts on working toward your mission, rather than trying to secure revenue from several different sources at the same time.
Investing in a matching gift automation tool, such as 360MatchPro by Double the Donation, can actually double or triple an organization’s matching gift revenue.
of Fortune 500 companies offer matching gift programs.
individuals work for companies with matching gift programs.
in matching gift funds goes unclaimed per year.
of survey participants say they’re more likely to donate if a match is offered.
donors indicate they’d give a larger gift if matching is applied to their donation.
of individual contributions are matched at the average nonprofit organization.
Examples of Corporate Philanthropy
There are many ways both companies and nonprofits can benefit from corporate philanthropy.
How Companies Benefit
Increased Employee Giving
Companies that take part in corporate philanthropy actively encourage their employees to give to nonprofits and get involved in their efforts, as well.
Positive Work Environment
Companies that bring their employees together to participate in team volunteer programs or other team programs help these employees feel like they’re part of the greater community.
Higher Employee Engagement
When companies take part in corporate philanthropy, their employees are more likely to enjoy their jobs and become even more engaged and productive.
Stronger Public Reputation
Companies that contribute to nonprofits demonstrate their commitment to the greater social good in the public eye, which in turn leads to enhanced consumer relationships.
How Nonprofits Benefit
Nonprofits benefit from corporate philanthropy programs like matching gifts because they boost the impact of donor contributions. In addition to matching gifts, some corporations award grants to employees to donate to the nonprofit of their choice, while others offer community grants that nonprofits can directly apply for.
Millions of Americans volunteer their time and efforts to nonprofits. When this time is combined with corporate philanthropy programs like volunteer grants, the hours a supporter gives to the organization will substantially increase the nonprofit’s revenue. This impact is multiplied even more by team volunteer grants.
Check out some of these top philanthropic companies:
Google is a technology company that specializes in Internet services. Over the course of one year, Google donated $255 million in cash to charity. The company offers both a matching gift program with a maximum of $10,000, and a volunteer grant program, offering $10 for every hour an employee volunteers.
JPMorgan Chase & Co.
JPMorgan Chase & Co. is an investment bank and financial services holding company. Over the course of one year, the company donated $250 million in cash to philanthropic causes. The company offers a matching gift program with a maximum amount of $1,000 at a 1:1 ratio.
Wells Fargo is an American multinational financial services company. The company donated $287 million in cash over the course of one year to nonprofits, and its employees volunteered 2 million hours. Wells Fargo offers both a matching gift and volunteer grant program, with a maximum of $2,000 for matching gifts and no minimum hours required for volunteer grants.
Raise More Through Corporate Philanthropy Software:
Using a corporate philanthropy database can help donors determine their eligibility for corporate philanthropy programs, such as matching gifts and volunteer grants. Such a database contains information on thousands of companies that take part in corporate philanthropy.
However, if you’re a large organization that generates more than $25,000 annually in matching gift revenue, sometimes simply promoting the use of a database isn’t enough. That’s why automating this entire process, from promotion, to the submission of match requests, through to completion, can bring in more revenue.
Benefits of 360MatchPro
360MatchPro by Double the Donation is an automation platform that helps large organizations and universities streamline the process of securing revenue from corporate philanthropy programs. This software functions as an entire corporate philanthropy team so your staff can focus its attention on your mission and getting things done.
How does the automation process work?
In the case of corporate philanthropy programs, such as matching gifts, the automation process works like this:
- Your donor makes a donation to your organization, providing useful identification information that can be used to determine their matching gift eligibility.
- 360MatchPro’s automated platform uses this information, such as email addresses and employer details, to identify those who are match eligible.
- Depending on the donor’s eligibility, the automation platform will trigger out an email to the donor explaining next steps. If a donor is eligible, they will be prompted to submit a match request and given the instructions on how to do so. If they are ineligible or undetermined, they will receive instructions on how to double check their eligibility.
- Your organization can track the match through to completion, offering actionable data your team can use. Donors can even click a button in the automated emails to indicate they’ve submitted their match request.
What corporate philanthropy software means for your team.
Corporate philanthropy software like 360MatchPro not only streamlines your entire process, but also helps boost your revenue while taking the pressure off of your team’s shoulders.
When your team has actionable data to leverage, as well as more time to invest in your mission, your organization will raise the funds needed to put on events, promote your cause, and focus on other tasks you may not have otherwise been able to accomplish.
Investing in an automation platform can help drive more revenue toward your large organization and help your team track its progress. Consider adding 360MatchPro as part of your nonprofit’s essential toolkit!
Additional Corporate Philanthropy Resources
Matching Gifts: Your Guide to Automation
Looking to find more information about matching gifts and automation?
Check out our expert’s guide!
Top 30 Matching Gift Companies: Find Your Match
There are tons of companies that offer generous matching gift programs.
Check out our extensive list!
Corporate Philanthropy: The Ultimate Guide
Want to learn more of the basics surrounding corporate philanthropy?
Read this guide from Double the Donation.