Many studies show that corporate charitable giving helps improve a company's bottom line. According to data from the Cone/Roper Cause Trends Report:

• 76% of consumers indicate they would switch brands or retailers to one associated with a good cause, when price and quality are equal
• 87% of employees at companies with philanthropic programs feel a stronger sense of loyalty to their employer

External benefits of corporate giving:

• Improved customer loyalty
• Enhanced reputation and standing in the community
• Increased positive name recognition and brand awareness
• New and enhanced relationships with key community leaders and officials
• Beneficial business-to-business relationships with nonprofits
• A reservoir of goodwill within the community
• Healthier, more livable and economically stronger communities

Internal benefits of corporate giving:

• Competitive advantage in attracting and retaining employees
• Leadership and development opportunities for employees
• Exposure of senior staff to new ideas, points of view and important social movements
• Improved internal communication and common purpose

Corporate Giving Options

If you own a family business or are an officer of a corporation, there are at least four options for you to consider for your company’s charitable giving: a corporate giving program, a corporate foundation, a corporate donor advised fund, and employee matching & non-cash giving.

Corporate Giving Program

Many corporations operate an annual giving program to make charitable grants, funded as part of their annual operating budgets. Business owners can blend their family business with family philanthropy by channeling their charitable support through their family corporation(s). A corporate giving program has no independent endowment, and its budget is typically administered by corporate staff and directed by the CEO or an advisory committee of management staff members. A corporate giving program is not subject to the rules and regulations governing private corporate foundations.

Corporate Foundation

A company can create a corporate foundation as an independent, tax-exempt private foundation. A corporate foundation is usually started with a single gift that can become the endowment, to which the company can add future contributions as it wishes. The foundation's officers are usually the company’s owners and key executives, although leaders from headquarters communities are sometimes included. At some companies, employee committees make giving recommendations about projects they believe are worthy of support. The corporate foundation is subject to the same rules and regulations applicable to other private foundations.

Corporate Fund

Companies can create their own donor advised funds at a community foundation of their choosing. For more information on this option, see Give to or through a Community Foundation.

Employee Matching & Non-Cash Giving

In addition to awarding cash grants to charity, companies often offer to match their employees’ gifts of cash and volunteer time to nonprofit organizations. Many companies assist and encourage their employees to give by organizing workplace giving programs (also known as "federated funds") and by facilitating payroll deductions for employees' charitable gifts. Companies sometimes match gifts that their employees make through workplace giving programs.
 
Some companies also organize employee workplace volunteer efforts, donate "in-kind" gifts of their products, or offer their services to charities on a free "pro bono" basis.

Keys to Successful Corporate Giving:

According to a survey of members of the Minnesota Keystone Program a recognition program for corporate givers, there are four key ingredients to successful corporate philanthropy:
 

1. Encourage employee participation. 89% of Keystone survey respondents involve their employees in the company’s charitable giving decisions.
2. Manage the process. Have a rationale for what you are doing, develop guidelines and objectives, budget your giving and stay focused.
3. Keep top management involved. The single most important ingredient for starting a corporate giving program is a strong value and support for corporate giving from top management.
4. Just do it!

For more information about Corporate Giving, please contact our Development Director, Darin Gilbert; toll free at 1-877-202-1130, or by e-mail.