Benefits of Long Term Giving
The Benefits of Long Term Giving
Corporate and employee giving has been around for quite some time now and has morphed over the years to where progressive corporations of all sizes, in all sectors, see the endeavors as a competitive differentiator.
When this notion first started, large corporations saw corporate social responsibility as a way to give back to society, serve the community they were based in, and as “the right thing to do.” Whatever the drivers, corporate giving back then was done without any expectations other than to give or serve.
At first, many of these programs were passive or sporadic engagements such as charitable donations a few times each year – well-received, but with few spillover long-term benefits. Then, as word started to spread on the halo effects of giving programs, progressive organizations restructured their philanthropic initiatives as sustainable, track-able, and measurable programs for greater corporate and societal benefit… and the field of corporate giving evolved.
Ready for continuous giving programs?
As we have now reached greater heights within our collective programs, independent studies have found that the benefits of a solid CSR initiative far outweigh the costs, and spread beyond the payback-to-society to significant tangible advantages. Studies also found that companies that correctly implemented continuous giving programs saw higher revenues; greater customer loyalty; higher employee satisfaction, engagement, and productivity; better employee retention and lower employee turnover; significantly better customer service and satisfaction; and improved profitability. Additionally, shares of public companies received a boost when they implemented long-term giving programs.
While consumers today are indisputably influenced by a corporation’s social giving initiatives, corporate B2B clients also ask for and factor-in CSR programs when awarding contracts… so CSR now has a direct impact on customer wins and revenue.
For maximum payback, CSR programs engage employees at every stage – from picking the various forms of giving (cash donations, in-kind products and services, volunteering) to screening which charities are eligible for tax-exempt donations, which communities and causes employees most “connect” with, to funds disbursement, program management, analysis, tracking, and feedback.
Companies’ CEOs, Board of Directors, and shareholders believe giving programs are a vital component of good corporate strategy and competitive positioning. CSR programs have evolved to where they can be implemented with clear methodologies to deliver more to society, and to the company and all its stakeholders – customers, employees, partners, and shareholders – in a safe and effective manner.
How to maintain a successful long term giving program
Yet, many CSR programs are managed and administered in-house, in ways that often miss out on the art and complexity of running successful giving programs, and on the tangible benefits they deliver. The Federal Trade Commission, for example, warns donor corporations to be vigilant against fraud such as charities that exist only on paper or collect money for illegal or non-sanctioned causes; such non-vetted giving is wasteful, can severely damage a company’s reputation and have legal, tax, financial and other ramifications. For maximum impact and to better manage risk, companies must consider hiring or consulting dedicated CSR experts (learn more about the importance of compliant giving programs).
With effective social responsibility programs now a major factor in corporate success, CyberGrants’ complimentary white paper – “Managing a Successful Long-Term Giving Program” provides useful advice on developing and maintaining successful ongoing giving programs.
Year-round employee giving programs provide companies an opportunity to make a larger, more consistent philanthropic impact through increased employee engagement and the ability to enhancement public reputation. And as we head closer to #GivingTuesday in a few short weeks, we celebrate this pinnacle day of giving that has over the years made such a tremendous impact. What if we could keep that momentum going all year long?
If you want to keep the momentum of Giving Tuesday going as we head into 2021, let us know how we can help.