Over the past few decades, United Way agencies and other nonprofits have developed more Workplace Giving partnerships with companies in their service areas, allowing employees to support a cause by donating money directly from their regular paychecks. With seeds planted back to the 1950s, corporate donations (that typically didn’t identify employees who gave, or what they gave) slowly gave way to Workplace Giving programs. This structured nonprofit-to-consumer donation model enables donations directly from employees via pre-tax gifts from each paycheck — fostering a more direct relationship with the charitable organizations they support. United Way and other nonprofits found that when employees were given increasing opportunities to engage with United Way’s mission, they usually answered the bell.
Here are some ways the Workplace Giving universe has evolved in the last few years, along with tips to increase engagement with your constituents and get the most out of your Workplace program.
WORKPLACE GIVING HAS NEVER TRENDED HIGHER
According to nonprofit digital marketing agency Nonprofits Source, 85% of U.S. companies have a formal domestic Giving program, and over 75% of Fortune 500 companies support Workplace Giving Programs. Both statistics are at higher levels than they were even three years ago. U.S. corporate giving increased by +3.4% in 2022 to $29.5B. Furthermore, many of today’s companies (and not just the larger ones) have hired corporate community relations, community investment and social responsibility professionals into their HR departments to maintain their charitable giving programs.
These trends show a clear sign of two things: 1) corporate America recognizes the evolving role it plays in combatting communities’ extensive social problems and helping to improve the lives of its residents in need, and 2) workplaces realize that their role is not just about raising funds; they’re also charged with becoming an increasingly important component of a holistic, globally-responsible culture.
Spurred by a Millennial generation that holds philanthropic giving and volunteering in high regard (and buoyed by a U.S. civilian labor force that set a new record of 167.1 million in 2023), conditions are right for Workplace Giving to be a true catalyst in advancing philanthropic giving to the highest levels yet.
FOCUS ON HEIGHTENING ENGAGEMENT
Today’s social issues drive how consumers choose what businesses they support with their money, and where they choose to work. Never before in the history of the workforce has an employer’s social responsibility been such a critical measure for employees. A labor force that’s increasingly socially aware expects similar awareness from the organizations it works for — where a higher purpose that positively impacts the world around it is a deliverable as natural (and essential) as sales increases and profit margins.
The emotional engagement of employer-with-employee around missions that hold significant meaning to each goes a long way toward 1) attracting high-character employees, 2) retaining them, and 3) building a best-in-class corporate culture with tangible impact beyond just a business perspective.
Remember, engagement comes in many forms. Those not giving from their paychecks might still be great candidates for volunteering hours for your cause — or lending their professional expertise (perhaps a trade, legal services, etc.).
TIP: Keep an ongoing dialogue open with your employee base as part of a formal Workplace Giving structure that meets regularly. Get input about causes near and dear to them and their loved ones, and be open to creative ideas on how they can contribute to the identified goals of the Giving program (employees given the freedom to choose which nonprofit to support are much more likely to give).
MATCHING GIFTS IS A CRITICAL PLAYER; MAKE SURE YOUR EMPLOYEES KNOW ABOUT IT
As Workplace Giving has become more commonplace, many corporations have augmented their programs by matching employee donations by either a percentage or total amount, thereby increasing the overall impact of support for United Way. In fact, according to matching gift advocates Double the Donation, nearly two-thirds (65%) of Fortune 500 companies offer matching gift programs, and over 26 million employees work for companies that have matching gift programs in place. However, it’s been reported that a majority of employees (some estimates are as high as 75%) are unaware if their workplace even offers a Matching Gift program — and some of those who are aware are either uncertain of their eligibility or don’t know the process to submit a matching request.
This disconnect leads us to believe there’s still some work to be done in company-to-employee communication so staff members know exactly what’s available to them as charitable donors. Intentional and transparent dialogue sets both sides’ expectations and clears any disconnects. As evidenced by the fact that more than 90% of participating companies match donations at a 1:1 ratio, such dialogue ensures that donations aren’t left on the table (as does an estimated $4-7 billion in unclaimed matching contributions each year).
TIP: Make sure your Employer shouts from the rooftops about its Matching Gift program — using Employee Handbooks, internal/external Newsletters, social media platforms and more to let its employees know that it’s there and how easy it is to match their gift. Even if your employer doesn’t currently have a Matching program, ask your supervisor or head of HR to consider matching your gift. It’s the way many Matching programs get started.
NOT ALL GIVING NEEDS TO BE FINANCIAL
As we like to say at DonorPoint, our broad all-in-one donor engagement software solution easily facilitates ANY ask you could make of a constituent, from any of the three giving ‘T’s: Time, Talent or Treasure. Just as countless Matching Gift programs exist unnoticed, employers offer extensive Volunteer programs that many workers may not know. (As we speak, our parent company, Scanco, is embarking on a 100% volunteer-based Adopt-a-Highway initiative, where employees maintain the cleanliness and beauty of a stretch of nearby interstate.) Nonprofits such as Habitat for Humanity, the Peace Corps, Every Home for Christ, and Convoy of Hope rely almost as heavily on Volunteer Hours as donations. According to TeamStage, nearly 1/3 of adult Americans formally volunteer at least once a year — with just over 1/3 of those hours dedicated to fundraising, and another 1/3 to collecting, prepping or distributing food.
TIP: Give your employees an incentive to volunteer their time to further a nonprofit. Tried and true incentives: bonus vacation days, bonus pay, gift cards, or free tickets to local events. Programs that offer incentives typically see steep upticks in participants. Also, consider organizing team-based volunteer events, which help build camaraderie among co-workers.
WORKPLACE GIVING AND TAX DEDUCTIONS
Donations made as part of Workplace Giving programs are typically tax-deductible as long as they’re made to qualified charitable organizations (501c3-accredited, for example). Your employer may know of other legal deductions that other Workplace Giving-related activities can claim.
TIP: Check the Internal Revenue Services’ Rules and Regulations about Charitable Contributions.
LEVERAGE YOUR COMPANY’S PARTNERSHIPS
What kind of industry does your workplace serve? Chances are it has relationships with vendors, suppliers, contractors and consultants. Have your Executive/HR teams reach out to their counterparts at these workplaces, as they may also have Matching or similar programs that can build on what you’re doing at your company.
TIP: Challenge a vendor, a customer, or even a rival company in your industry to a friendly charitable giving/volunteering competition by using social media to engage those companies, your customers, and your followers. That competitive spirit and amicable ‘one-upmanship’ from it will translate to even more support for a cause in need.
