Let’s start at the beginning:
Corporate philanthropy refers to businesses donating their money, resources, and time to charitable causes and organizations. It is a way for companies to give back to their community and demonstrate their commitment to social responsibility.
What Are Some Examples of Corporate Philanthropy?
One of the goals of corporate philanthropy is often to align the company’s values with those of the community in which it operates.
This can be achieved by efforts that range from small-scale contributions to large-scale initiatives. For instance, businesses can choose to support charitable causes by making annual cash donations or, perhaps, by holding monthly canned food drives.
On a larger scale, a business may choose to sponsor a charitable program or event — or even a series of events! However, this form of corporate philanthropy typically involves a significant investment of time, money, and resources.
What Are the Different Types of Corporate Philanthropy?
There are several different forms of corporate philanthropy that companies can choose to engage in depending on their goals and resources. Here are some of the more common ways businesses can participate in corporate philanthropy:
This refers to monetary donations to charitable causes or organizations. Businesses can participate in financial philanthropy in different ways, including cash donations, grants, and matching gifts.
In-kind philanthropy involves donating goods or services to charitable causes and organizations.
For example, pharmaceutical companies may donate medications to low-income communities, or a food company may donate food to a food bank.
Many businesses actively encourage employees to volunteer both their time and skills in order to support charitable causes. It’s popular for companies to offer paid time off for employees to volunteer and organize team-building activities focused on volunteering.
Some companies choose to establish and fund a separate charitable foundation or trust that operates independently. Corporate foundations present a useful way for companies to manage their philanthropic activities while simultaneously ensuring that donations are used effectively.
Encourage and empower your employees to give with an Employer-Sponsored Impact Account! With a Philanthropi corporate donor-advised fund, your staff can track all of their giving in one convenient place.
Cause-Related Marketing Campaigns
This encompasses the partnership of a company with a charitable organization in order to raise awareness and funds for noteworthy causes.
For example, our team at Philanthropi has partnered with Breastcancer.org through the month of March 2023. We aimed to help promote breast cancer awareness by establishing a matching* donation campaign.
Trends in Corporate Philanthropy
There are several trends in corporate philanthropy that have emerged in recent years, and they all reflect that philanthropy can be a powerful method for businesses to build strong relationships and foster positive impacts in their communities.
Many companies are shifting towards a more strategic approach to their philanthropy, focusing on causes that parallel their core values and business interests. This helps improve a company’s reputation and helps develop stronger relations with customers and stakeholders.
Companies are increasingly incorporating environmental sustainability into their philanthropic efforts, supporting initiatives such as renewable energy, conservation, and recycling.
Diversity, Equity, and Inclusion (DEI)
Companies are focusing on incorporating DEI principles into their philanthropic efforts, ensuring that their giving is addressing systemic issues and supporting marginalized communities.
Companies increasingly recognize the importance of engaging their employees in philanthropic efforts. This can include matching donations, offering paid time off for volunteer work, or organizing company-wide volunteer days.
Company philanthropic efforts are becoming more data-driven by measuring the impact of donations and charitable programs to ensure the desired outcomes are being achieved.
Many companies are collaborating with other businesses, non-profits, and government entities to pool resources and expertise to tackle complex social issues.
Reach out to learn how to sign up for an Employer-Sponsored Impact Account!
* Philanthropi matched up to $5,000 total within the month of March 2023.
Is corporate philanthropy the same as corporate social responsibility (CSR)?
Although corporate philanthropy and CSR are related, they are distinct concepts.
Corporate philanthropy refers to the charitable donation of money, resources, and time made by a business. It is focused on providing financial support to social causes and helping to meet the needs of the community.
Alternately, corporate social responsibility involves integrating social and environmental concerns into a company’s business policies, practices, and operations.
It encompasses the company’s overall approach to sustainability and ethical behavior, including its impact on stakeholders like customers, suppliers, employees, and the community. CSR efforts include philanthropic giving and other activities, such as improving employee work conditions and reducing the business’s environmental footprint.
Is corporate philanthropy part of environmental, social, and governance (ESG)?
Yes, corporate philanthropy can be considered part of the broader concept of ESG.
ESG refers to a set of standards that companies use to evaluate their performance and impact on society, the environment, and corporate governance. It should be known that the “S” in ESG stands for social, encompassing topics such as labor practices, human rights, community engagement, and philanthropy.
What is the goal of corporate philanthropy?
The overall goal of corporate philanthropy is for businesses to support social, environmental, and community causes through various forms of charitable giving.
By means of corporate philanthropy, businesses can demonstrate their commitment to making a positive impact on our society and the environment.
How do you become a corporate philanthropist?
Becoming a corporate philanthropist requires being part of a corporation committed to giving back and making a beneficial impact on society and the environment. Here are some steps you can take to become a corporate philanthropist:
- Identify your business’s values, mission, and philanthropic goals
- Research causes that align with your company’s goals and have a strong track record of impact
- Develop a giving strategy that outlines your company’s philanthropic goals
o Pick out the causes and organizations you want to support
o Decide the amount you want to give
o Identify criteria to evaluate your giving impact
- Encourage employee involvement
o Encourage employees to donate their time or money
o Consider establishing a matching gift program to increase employee giving
- Collect data and feedback to measure and evaluate the effectiveness of your business’s philanthropic efforts.
Founded in Philadelphia in 2018, Philanthropi is revolutionary charitable giving by democratizing philanthropy through its giving-as-a-service platform. We allow everyday donors to support their favorite nonprofit organizations seamlessly.