4 Tips for Donating to Charity as a Business and How to Properly Publicize It

Most companies do some type of charitable giving. It’s just a part of doing business. In fact, going into 2024, corporate giving was on the upswing, according to a report from Giving USA.

In 2023, corporations gave $36.55 billion to charity, a 3% increase from 2022, even though corporate giving as a percentage of profits has dropped by 50% during the past 15 years. Overall, however, corporate giving is higher than pre-pandemic levels.

While charitable giving is a year-round priority, the holidays and new year often inspire heightened generosity from individuals and businesses alike.

The size and scope of corporate giving programs vary widely, as does the way they are managed. Some companies have very arbitrary giving plans in which they inconsistently donate to different charities without a focused theme. Others donate by type of cause. They may, for example, donate only to charities that address food insecurity, or provide housing. Still others align themselves with a limited number of intentionally identified nonprofits that have been well-vetted by senior management.

Benefits of donating to charity as a business

Brands partner with charities for different reasons. Sometimes it’s simply that they believe in giving back to the community and feel a sense of obligation to help those less fortunate. Despite these warm-fuzzy feelings, most companies donate because it’s good for business, even beyond any potential tax benefits. Such donations often serve to bond a company closer to its customers and prospects, its employees or the government entities that impact the company’s ability to do business.

For example, a major customer may be closely tied to a cause. In that case, there is reason for that business to donate to that same cause. If a company does much of its work in the building industry, as another example, that business may benefit from donating to charities focused on providing shelter.

There is also a huge employee satisfaction, recruitment and retention angle to consider. A survey by Fidelity Investments found that 66% of workers feel it’s important for companies to be philanthropic and to support different causes. And according to charities.org, 55% of employees would choose to work for a socially responsible company even if the salary was less.

How to evaluate a charity organization

During the year, there are likely many different charities that a business may support to appease its various stakeholders. But to make a noticeable difference, many organizations designate a signature charity that receives a larger percentage of funds. Since this partnership receives a lot more visibility –both internally and externally—more consideration should be given to choosing a nonprofit that is a good fit with the organization—its culture, its cause and its reputation.

If your company is looking to identify a specific charity or charities as a potential partner, start by checking with all key stakeholder groups to ensure you’ve taken their opinions and preferences into consideration. Employees need to feel like they are a part of the decision-making process if you expect them to actively engage in the charity’s events and initiatives.

Questions to ask and things to consider when making your final decision include:

• Does the charity’s cause resonate with your company’s mission and ethics?
• Will your donations make an impact on the local community or industry?
• Is the charity financially stable? Has it been around long enough to weather economic uncertainties and pressures? Is it transparent with the way it spends its money?
• How does the charity measure success? What is it achieving?
• Are there different ways for your employees to be involved with the charity?
• Have you checked out references, either through third-party platforms like Charity Navigator or BBB Wise Giving Alliance or by asking business associates or community leaders?
• Is this a charity that is respected and supported by business peers?
• Has the charity been the focus of any recent negative publicity? If so, how well did it defend itself?
• Have you done all your homework?  This means more than visiting the organization’s website and reading its annual report. Have you physically visited the site, spoken with its employees and the people it serves?

This is not meant to be a one-and-done process. While you want to have a level of consistency in your philanthropic programs, you should also be flexible enough to change, as necessary. Workforces change. Industries change. And charitable reputations can change. So doing a type of gut-check roughly every 10 years ensures that your charity selection is still relevant and aligns with your current business model. If you feel 10 years is too long, every five years can be a good barometer, as well.

What and How to give

There are many ways to develop a true partnership with your chosen signature charity. Of course you can always write a check. This is one of the simplest acts and likely very impactful to the nonprofit. But there are many other ways that you can make a difference, some of which engage your employees and build goodwill with the community, as well as your key stakeholder groups.

These include:

• Participation by your senior leaders on the nonprofit’s Board of Directors
• Participation by your mid-level managers on any related Junior Boards
• Creation of an employee-match program through which the company matches employee contributions. 
• Attendance at the charity’s fundraisers and other charity events. (Ideally host a table there.)
• Hosting of an onsite event, such as a toy drive or collection of hats and gloves.
• Approval of employee volunteer hours for individual employees or coordination of an employee engagement event in the field (on the front lines)

How to publicize corporate giving to maximize goodwill

So now that you’ve chosen your charity and developed a plan for supporting it, how do you get credit for your work? Sometimes it’s good to do good for goodness’ sake and not worry if anyone else notices. But yours is a business and, knowing how important it is to internal and external stakeholders that you are a good community partner, you need to be intentional in letting others know the good you’ve done.

Like anything today in the world of PR and social media, you need to be authentic in your efforts and your tone, focusing on the impact vs. the deeds themselves. Here are a few acceptable and expected ways:

• Create an annual report focused on your organization’s community impact over the year.
• Capture photos of any events you host or employee volunteering that is done and draft accompanying social posts that focus on your company’s reasons for choosing and helping the specific charity and the pride you have in your employees for engaging.
• If the work you and your employees are doing is visually interesting, alert the local media of the photo op. When possible, however, put emphasis on your employees and the charity so the effort does not appear overly promotional.
• Communicate your charitable contributions and employee engagement through appropriate internal communications venues, such as Intranets or employee newsletters. An important message is why this charity was chosen and how it reflects your own corporate values.
• Encourage customers and vendors to join you in the cause by promoting the good done by the charity.

For more information on how to build corporate goodwill with your key stakeholders, reach out to Falls & Co. today.