CORPORATE PHILANTROPY
OVERVIEW OF THE CORPORATE GIVING
Ing. Pavel Adámek, Ph.D.
CORPORATE SOCIAL RESPONSIBILITY/PEM - NACSR
CORPORATE PHILANTROPY
OUTLINE OF THE LECTURE
1. Meaning of the Corporate Philantropy
2. Types of Corporate Giving Programs
3. Regional Profile: Europe
4. The World Trend in Corporate Philantropy
CORPORATE PHILANTROPY
INTRODUCTION
• Corporate philanthropy is a type of organizational social
engagement that involves the allocation of time, money,
or goods aimed at addressing a social need.
• The charitable donations of profits and resources given
by corporations to nonprofit organizations.
• Corporate philanthropy generally consists of cash
donations but can also be in the form of use of their
facilities or volunteer time offered by the company's
employees.
• Donations are generally handled directly by the
corporation or by a foundation created by the firm.
Corporate philanthropy is the act of a corporation or
business promoting the welfare of others, generally
through charitable donations of funds or time.
CORPORATE PHILANTROPY
INTRODUCTION
• Businesses are increasingly creating a culture of corporate philanthropic engagement,
moving beyond just grant checks to more strategic and effective giving.
• Today, many companies manage highly visible, well-structured programs that span
geographic borders and align corporate giving with core business capabilities.
• The 21st century generation of corporate philanthropy is transforming the arena once
again, repositioning it as a comprehensive portfolio of strategic, long-term, value-based
programs.
CORPORATE PHILANTROPY
INTRODUCTION
How can corporate philanthropy help nonprofits?
• Corporate philanthropy helps nonprofits through various methods of support, such as
corporate matching gift programs and volunteer grants.
• The impact of donations and volunteering for nonprofits can be drastically increased with
the help of corporate programs.
How can corporate philanthropy help businesses?
• Corporate philanthropy fosters employee engagement and generates business value.
• When businesses participate in corporate philanthropy, they are creating a positive public
image for themselves, enhancing their relationships with consumers, and creating a
positive work environment.
What is the difference between corporate philanthropy and corporate social
responsibility?
• While they may seem similar, corporate social responsibility describes the overall attitude
of an organization toward society at large, while corporate philanthropy is a narrower
form of corporate social responsibility.
CORPORATE PHILANTROPY
INTRODUCTION
Why is Corporate Philanthropy Important?
Becoming familiar with corporate philanthropy is important, especially for nonprofits
and corporations. It encourages employee giving, which has a positive impact on
nonprofits and society, and benefits businesses by helping them reach their goals.
For example, corporate philanthropy can lead to:
• Positive Work Environment - Bringing employees together to participate in team
volunteer grants or other team programs encourages everyone to see themselves
as part of the greater community. This feeling of community then benefits the
greater social good.
• Increased Employee Engagement - Companies with engaged employees who
enjoy their jobs outperform companies with disengaged workers by up to 202%!
Collective participation in philanthropy engages employees with each other.
• Positive Public Image - Partnering with a nonprofit provides corporations the
opportunity to publicly show their communities how invested they are through
press releases, social media, and word of mouth! Their work then adds to greater
social change.
• Enhanced Consumer Relationships - Consumers want to buy from companies
that are doing good deeds in the world, especially those that support causes they
care about. By upholding their commitment to these causes, companies make a
huge impact.
CORPORATE PHILANTROPY
INTRODUCTION
Corporate Philanthropy Statistics
Amaricans example:
EU example:
• The total amount of philanthropic contributions in Europe is estimated at EUR 87.5 billion annually.
This is a lower bound estimate from 20 European countries that contributed to Giving in Europe, the
first study measuring philanthropy in Europe. The study was officially presented in Brussels at the
King Baudouin Foundation organized event “Spring of European Philanthropy” 2017.
• The study shows that households (including bequests) are the main source of philanthropic
contributions (53%, EUR 46 billion), followed by corporations (25%, EUR 21.7 billion), foundations
(19%, EUR 16 billion) and lotteries (3%, EUR 3 billion).
• Giving in Europe (summary facts)
CORPORATE PHILANTROPY
INTRODUCTION
What are the benefits of corporate philanthropy?
• Corporate philanthropy helps support communities where companies are based. It
supports corporate giving programs, which essentially lead to free money for nonprofits.
• Corporate giving programs allow companies large and small to make investments in
social good.
– These programs are a form of corporate philanthropy that facilities charitable
giving to nonprofit causes.
– These programs are often driven by employee giving: the more employees
contribute to philanthropic organizations, the more their company will donate.
– The top types of corporate giving programs are Matching Gifts and Volunteer
Grants.
CORPORATE PHILANTROPY
Types of Corporate Giving Programs
Matching Gifts
• Matching gifts occur when a company contributes to a nonprofit that an employee donates
to, usually matching their donation at a 1:1 ratio. However, some companies will match gifts
up to a 4:1 ratio!
How do matching gifts work?
The matching gift process generally follows these steps:
• The donor makes a donation to a nonprofit.
• The donor determines if their donation is eligible for a company match using a matching gift
database.
• If it’s determined their employer will match their donation, the donor can click on the link to
the online forms provided by the database and submit the forms.
• The donor’s employer reviews the forms and follows up with the nonprofit to confirm the
donation.
• The employer makes a matching donation.
CORPORATE PHILANTROPY
Types of Corporate Giving Programs
Volunteer Grants
• Volunteer grants are corporate giving programs that encourage employees to volunteer their
time and efforts in their communities.
– Companies will provide monetary grants to organizations where their employees regularly
volunteer.
How do volunteer grants work? Volunteer grants come in two forms:
• A set monetary donation for every hour an employee volunteers
• A set grant amount once employees have volunteered a certain amount of time
• The volunteer grant process generally follows these steps:
• The volunteer gives their time to a nonprofit.
• The volunteer determines if their time spent is eligible for a volunteer grant using a volunteer grant
database.
• If it’s determined that their employer does offer volunteer grants, the volunteer can use the database to
find and submit their company’s forms.
• The volunteer’s employer will review the forms and verify with the nonprofit that they volunteered.
• The employer will send the nonprofit a monetary grant.
CORPORATE PHILANTROPY
Types of Corporate Giving Programs
Corporate social responsibility is on the rise and, as a result, many companies now offer
corporate giving programs. These programs range from matching gifts and/or volunteer
grants to a variety of other program models. Check out the top 10 companies for corporate
giving:
Walst Disney Corporation Matching Gifts example.
CORPORATE PHILANTROPY
Types of Corporate Giving Programs
Other Types of Corporate Philanthropy Programs
Fundraising matches, like matching gifts, provide nonprofits with donations after an
employee has donated time or effort to the nonprofit.
• Examples include walkathons (sponsored walk-walking or marathon), runs, or bicycle
events. The participant’s employer will match the money they raise through sponsorships
or other donations. (Video: https://www.youtube.com/watch?v=pENwTqj-_Bw)
• Dollars for Doers is one of the most common corporate philanthropy programs that are
offered by employers. Also called “individual volunteer grants,” Dollars for Doers rewards
employees who donate their efforts to a nonprofit.
• In order to make this happen, there are usually thresholds that must be met. For
instance, a company might offer $250 to a nonprofit for every 15 hours that an employee
volunteers there.
• Dollars for Doers is a great corporate giving program to take advantage of when you
have a dedicated group of volunteers!
CORPORATE PHILANTROPY
Types of Corporate Giving Programs
Other Types of Corporate Philanthropy Programs
• Team volunteer grants are a type of corporate philanthropy program where companies
reward groups of employees who volunteer at a nonprofit together.
• Employees fill out a volunteer grant request form to have the funds donated to the
organization at which they volunteer.
• This is a great team building activity that can benefit all parties involved.
• Nonprofits receive both volunteered time and money, employees feel accomplished by
volunteering for a great cause, and companies get to demonstrate their philanthropy and
interest in bettering the community.
• Examples of team volunteer grant programs
CORPORATE PHILANTROPY
Types of Corporate Giving Programs
Other Types of Corporate Philanthropy Programs
• Community grants are a slightly different corporate giving program in that the nonprofit
must pursue the grant itself.
• Nonprofits can request community grants from companies who want to see a positive
impact in their communities, though there are specific deadlines.
• Community grants can include disaster relief grants, as well.
• Volunteer support programs are great corporate giving programs that allow companies
to offer their products and services to those in need.
– For instance, companies may donate computers, consulting services, food, or marketing strategies.
• These corporate philanthropy programs allow nonprofit organizations to benefit from free
products and services, and companies also can feel pride in knowing they’ve helped a
worthy cause.
CORPORATE PHILANTROPY
Types of Corporate Giving Programs
Other Types of Corporate Philanthropy Programs
• Automatic payroll deductions are one of the easiest corporate giving programs to take
part in.
• As the phrase implies, employees can arrange to have a portion of their paycheck
regularly contributed to a nonprofit.
• One thing to note is that companies typically limit the type of nonprofit their employees
can contribute to.
– For example, a company that has an interest in the environment might restrict donations only to nonprofits
whose missions are targeted toward the environment.
• That said, once a nonprofit is on the company’s list of approved organizations, this is a
great way for the nonprofit to receive ongoing donations.
CORPORATE PHILANTROPY
Types of Corporate Giving Programs
Other Types of Corporate Philanthropy Programs
• Annual grant stipends, though not as common, are a great way for nonprofits to benefit
from companies and their employees and are impactful corporate philanthropy programs.
• An annual grant stipend is essentially an allocated amount of money that is given each
year to employees, who then donate the money to the nonprofit of their choice. Volunteer
hours are not required, and the company donates for them.
• The stipends are not incredibly large, but nonprofits can still benefit from these annual
corporate giving programs.
• Internal Employee Fundraising - It’s easier to cultivate a relationship with people you
know, rather than start a new one. Through internal employee fundraising, nonprofits can
encourage their own employees to volunteer to support the cause, increasing their
chances that others will follow suit.
• By looking internally, nonprofits can receive even more donations and volunteer efforts
without needing to put in too much extra effort.
CORPORATE PHILANTROPY
Types of Corporate Giving Programs
Other Types of Corporate Philanthropy Programs
• Annual Giving - As part of this corporate giving program, employers will encourage
donations at certain times of the year, so nonprofits should track the companies who run
similar donation promotions.
• Every company varies, so it’s important to reach out to donors at those specified times.
• The most common time for companies to promote employee giving is at the end of the
year.
• This is because employees have a better idea of how much they can donate to
charitable causes. Keep track of these corporate giving programs to maximize donation
revenue.
• Employee Product Donation Programs (EPDP) - As part of their corporate
philanthropy programs, many companies encourage employees to give by offering
discounts on their products, which can then be donated to nonprofits.
• While mostly popular at technology companies, these corporate giving programs are also
found in several other industries. Companies may have restrictions on who can receive
these products, but this is still a program that can benefit the greater community.
Chief Executives for Corporate Purpose (CECP) produces Giving in Numbers, the unrivaled leader on benchmarking of corporate
social investment, in partnership with companies. This year, 250 multi-billion-dollar companies
INTRODUCTION
CORPORATE PHILANTROPY
Regional Profile: Europe
• European Research Network On Philanthropy (ERNOP) to map
philanthropy in Europe and presents a first overall estimation of the European
philanthropic sector.
• Pro bono programs are offered by only 27% of European companies. As
strategies become ever more closely tied to business assets, companies will
seek to draw on their human capital.
• The European field is typically with a less important role of foundations
because of the administrative complexity and diversity of legislation
internationally.
• The presence of foundations (reported by 74% of companies – according to
CECP report) and the percentage of total giving that comes from foundations
(42%) are both relatively high in Europe.
CORPORATE PHILANTROPY
Regional Profile: Europe
• Challenges to increasing entrepreneurship include harsh bankruptcy laws, insufficient
venture capital financing, and inflexible labor laws.
Source: CECP - GIVING AROUND THE GLOBE: 2015
CORPORATE PHILANTROPY
THE WORLD TREND
Community investments continue to increase.
• Total giving increased by 11% between 2016 and 2018. The Health Care industry was
the main driver of this increase in contributions.
Matching gifts decreased
• The overall median dollar value of matching gifts decreased by 7% between 2016 and
2018. Reasons may include that teams are communicating/ encouraging matching-gift
programs less than they used to; another factor is budget reductions (21% of
respondents).
International giving is on the rise
• International giving grew by 9%, signaling greater impact across the scale of the multibillion-dollar
companies represented in Giving in Numbers
Volunteer participation remains strong, driven by time flexibility
• The average volunteer participation rate has remained steady at 33-34% in the last three
years. Volunteer participation rates are boosted when employees have access to more
flexible volunteering opportunities. There is an increasing trend of companies offering
both Paid-Release Time and Flexible Scheduling, so that employees can decide whether
they volunteer on or outside company time.
CORPORATE PHILANTROPY
THE WORLD TREND
Volunteer hours increased, driven by access to hours away from work to volunteer.
• For the first time, the Giving in Numbers Survey asked for data on the number of annual
hours that companies are offering employees, which in 2018 was 20 hours on average.
Human capital focused on community investments is growing.
Measurement of business impact is a key factor in maximizing resources.
• Companies that not only measure social outcomes and impacts of community
investments/grants but also measure the business value of such community investment
attain higher levels of total giving and volunteer participation rates.
CORPORATE PHILANTROPY
THE CURRENT SITUATION IN THE WORLD
• Research shows that societal investments correlate with financial
performance and encourage companies to take a long-term view towards
strong and sustainable returns.
• Company skills are being applied to solving societal challenges. From
2012 to 2017, offerings of pro bono and board service had higher growth rates
than any other volunteer programs, demonstrating an instinct to infuse societal
engagement with employees’ skills.
• Doing good beyond giving is growing, too. While total giving (cash and
non-cash investments) is stable and strong, companies are also seeking to
innovate through cross-departmental collaborations, new product development,
and impact investments.
CORPORATE PHILANTROPY
THE CURRENT SITUATION IN THE WORLD
• Despite corporate downsizing, companies held or increased their communityengagement
team size, attesting to a high value placed on the societal
investment department or what this report also refers to as a company’s
“contributions team.”
Why giving changed?
• Improved tracking and measurement capabilities of corporate societal
investments and activities;
• Expansion of employee engagement programs such as increased participation
in matching-gift or pro bono opportunities; and
• Increasing business performance for companies with giving budgets tied to
financial results.
CORPORATE PHILANTROPY
THE CURRENT SITUATION IN THE WORLD
• The employees were identified by CEOs as the top stakeholder influencing
decisions in corporations’ societal engagement.
• Matching-gift programs are one way to increase employee engagement.
– An overwhelming majority (78%) of companies reported that they were
soon likely to change their matching-gift programs in a way that has the
potential to increase employees’ participation.
• The ways companies invest in societal value continue to expand.
• Contribution strategies are increasingly integrated within Environmental, Social
and Governance (ESG) and corporate strategies. As such, societal investment
must respond to companies’ growth or contraction, their risks and
opportunities.
CORPORATE PHILANTROPY
SUMMARY OF THE LECTURE
• The history of altruistic behaviour connected with donation goes back to the beginnings of human
civilization.
• Historical roots of philanthropy – humanistic motivated charity in the form of money/goods/time giving
– had been found in the Ancient times.
• The beginnings of organized philanthropy on the Czech Republic territory are connected with the
Christianity and church.
• In the Middle Ages philanthropy became a public affair and was set in law.
• Nowadays, the effort to help others who need it still occurs. The philanthropy is realized mainly
through the nonprofit sector. It mediates the transfer of material gifts from the donor to the target
group.
• The non-profit organizations intervene usually in those areas where the state fails.
CORPORATE PHILANTROPY
SUMMARY OF THE LECTURE
• Expectations that the company may have from their philanthropy, it could be summarize as a
possibilities for corporate donors - advertising, publicity, image; new orders, sales, new clients; tax
relief; satisfaction of the director, hobby,
• my experience with the problem; have spare funds and want to try something new, it is fashionable;
• do not have time, but happy to support activity; personal acquaintance; influence of the environment,
patriotism, tradition, and renting space for the company, improved employee morale, new minds,
providing trainers, wristbands for children of employees, participation in the event organization.
• Large multinational companies tend to have based these expectations have already prepared their
philanthropic strategy that is part of their marketing policies and concepts.