Businesses Acting as Instigators: Unveiling the Broad Impact: How Corporations Can Spur Social Transformation
Businesses Acting as Instigators: Unveiling the Broad Impact: How Corporations Can Spur Social Transformation
Imagine a society where every American felt empowered to contribute to nonprofits that held significant meaning to them. Regrettably, nonprofit support has been dwindling in recent times. As a response, The Philanthropy Council (TPC) – a nonpartisan gathering of influential figures, including myself – was established with the aim of redefining how individuals give and celebrate the individuals and organizations driving positive changes. In our latest published nine suggestions aimed at inspiring everyday actions to support nonprofits' crucial work, we delve into how businesses can motivate employees to engage in volunteering and donations. This aligns closely with my full-time role as the executive director of an organization dedicated to guiding companies and their employees in selecting nonprofits they wish to support and facilitating donations (frequently sourced from workplace giving initiatives) to these chosen organizations.
Supporting nonprofits presents an opportunity to bring people together and inspire transformation. Individuals working towards a common purpose can cultivate meaningful relationships and collaborations. Through action, no matter how small or large, change can occur.
Action for Businesses
In 2023, approximately 27 million Americans had the chance to take part in giving programs through their jobs. However, it's estimated that up to 78% of these employees were unaware that their company even offered such a program. Consequently, although $5 billion was donated to charities through workplace giving programs, an estimated $4 billion to $7 billion intended for charitable giving remained untouched.
To address this issue, businesses should raise awareness of their corporate social responsibility (CSR) initiatives, encourage employees to back causes that resonate with them, and encourage leaders to demonstrate their charitable endeavors and passions to foster a culture of philanthropy and community support. Workplace giving programs contribute significantly to nonprofits, engage employees, serve as a valuable recruitment tool, and bolster a company's CSR efforts and public image.
Impact on Nonprofits
Regular donations, such as those made through workplace giving programs, prove invaluable to nonprofits. Employee donations often come with corporate matches, effectively doubling or even tripling the initial contribution. Workplace giving can cultivate lifelong supporters by fostering a passion for giving.
Corporate-led volunteer events enhance nonprofits' visibility within their communities. Notably, volunteers contribute an average of 36% more than their non-volunteering counterparts. When companies engage in volunteer events, they not only engage their employees but also contribute to the communities they serve and support their internal CSR objectives. In turn, nonprofits gain critical hands-on assistance and enhanced exposure.
Giving programs open new collaborative opportunities for nonprofits with these companies, which can include sponsorships, volunteer events, giving campaigns, and more. These collaborations can provide essential support in achieving the nonprofit's mission.
Impact on Companies
Any-sized companies can empower employee giving by encouraging support for causes that resonate with them, organize volunteer days, or establish a more structured giving and volunteering program. There's no one-size-fits-all approach to corporate philanthropy.
Implementing giving programs can bolster a company's recruitment strategies, especially with Millennials and Generation Z, who make up nearly half of the workforce and prioritize social good in their professional and personal lives. Companies with a mission-driven approach are more likely to attract and retain top talent with these growing audiences.
Workplace giving programs can significantly enhance employee engagement levels, promoting higher retention rates and reducing turnover. Additionally, companies that promote their philanthropy and CSR initiatives demonstrate their commitment to the community and improve their public perception. By integrating give-back initiatives into company culture, businesses can create a snowball effect of social good, inspiring the community and industry peers to act as forces for good.
Impact on Employees
Supporting nonprofits through donations or volunteer work triggers a dopamine release, sparking a sense of joy and fostering a passion for social causes. This also strengthens community bonds and encourages others to offer their support.
Workplace giving programs instill a taste of philanthropy in employees, nurturing ongoing giving habits. According to the 12th Annual Report on Corporate Social Responsibility and Employee Engagement Trends from YourCause by Blackbaud, an employee donates an average of $1,140 per year, including a company match. Imagine the difference our world could experience if everyone adopted this habit throughout their careers!
Happier employees tend to have higher job performance levels. Employers who encourage their employees to engage in community efforts offer them the chance to connect with others in unique ways, easing feelings of isolation that can arise in our digital age. When we give back and volunteer, we forge connections and interact in ways that make us feel less isolated.
Business leaders play a pivotal role in supporting workplace giving programs. Leading by example and inspiring others to back nonprofits that correlate with their values can help foster nonprofit support. They can also enlighten their colleagues about local issues and integrate CSR programs into business strategy to encourage broader support. CSR programs don't have to be complicated; they can begin with a few hours of paid time off per year, a company-wide service day, or launching a donation campaign. Starting small and expanding to suit the needs and passions of the business will help create an effective CSR program that employees will embrace.
Businesses can have a tremendous impact on their communities and employees. Companies that publicly showcase their commitment to the community and charitable organizations can leave a lasting, positive imprint. Companies should encourage their employees to participate (or even spearhead) giving programs to support causes that truly matter to them.
Our Exclusive Nonprofit Council is an invitation-only organization for the chief executives of successful nonprofit organizations. Am I eligible?
Matt Nash, being a part of The Philanthropy Council, could potentially be invited to join the exclusive Nonprofit Council, furthering his influence in promoting philanthropy and supporting nonprofits.
As the executive director of his organization, Matt Nash could leverage his role to advocate for CSR initiatives within businesses, encouraging them to raise awareness of their giving programs and fostering a stronger culture of philanthropy among their employees.