Nonprofits’ opportunity to create community impact with businesses
Many companies have long histories of championing societal initiatives and supporting nonprofits with contributions and time or providing much-needed aid to communities when other institutions were unable to do so. Only in the past two decades have these efforts become formalized and more strategic.
Fundraisers know from experience that business leaders are no longer looking at partnerships with nonprofits as an annual check-writing activity, but as a key piece in their overall approach to corporate social investment. Nonprofit leaders need to pay attention to this approach given the move toward deeper relationships and greater expectations between funders and their nonprofit partners.Proposals and programs designed to engage corporate employees in a meaningful way offer significant appeal.
One of the biggest opportunities is helping firms activate employees’ interests, resources, and talents in support of corporate citizenship efforts. Many companies already offer a collection of ways to engage employees in their communities, from pro bono skills-based volunteering, and other volunteering programs with nonprofits, to various matching gifts programs, such as disaster response and many other workplace-giving initiatives.
Integrated into these more established models of employee giving and volunteerism is an intentional effort to encourage employees to donate their time or money to support causes that are near and dear to them, regardless of the nature of the program. Leading companies do this because of their commitment to “purpose.” Purpose really does matter – for both employees and companies.
Employees increasingly see work as not just a paycheck but a higher calling.They want to feel good about their place of work and are seeking to create impact that matters to them. In a report from CECP, Imperative, and PwC, Making work more meaningful: Building a fulfilling employee experience, research found that seven out of 10 employees surveyed said they’d consider leaving their current role for a new, more fulfilling job opportunity, with one-third willing to consider lower pay for it.
Here are a few ways the world’s leading companies engage employees and help them attain a sense of purpose. Nonprofit leaders who help to establish these engagements become an invaluable partner for purpose-driven companies.
Employees love to volunteer their time & skills, and to partner with management in matching gifts programs.
Pro Bono, SkillsBased and Volunteering Programs
Perhaps the most recognized model for employee engagement is pro bono services. CECP found in its Giving in Numbers report that 56 percent of firms offered pro bono service programs in 2017. These programs are undoubtedly popular, though pro bono services trailed other volunteer programs in terms of perceived success. (A “successful” volunteer program is defined in the Giving in Numbers Valuation Guide as one that is supported and understood organization-wide, planned beyond the short-term, and measurable, among other criteria.)
In 2017, just 27 percent of companies identified pro bono services as a successful volunteer program. While still an important tool in the employee engagement toolbox, sometimes pro bono programs are only for a few employees, happen only occasionally, or do not have defined outcomes. Nonprofit leaders have an opportunity to collaborate with companies on refreshing pro bono programs.
Certain volunteering programs enjoy greater perceived success. The top three considered successful include: Company- Wide Day of Service (85 percent);
Dollars for Doers (59 percent); and, Paid-Release Time (58 percent). Part of what makes a Company-Wide Day so successful is employees rally together toward a common goal, achieving outcomes at scale. It is very visible and easily identifiable as a corporate initiative.
There’s also evidence that on company time volunteering policies attain higher volunteer participation rates — 31 per- cent — compared to companies that stated they have an outside company time volunteer program (29 percent). Company-Wide Day of Service and Paid-Release Time are opportunities to demonstrate to employees that giving back in the community is a value that the company managers want to reward, and, in turn, employees sign up with company pride.
The Rise of Matching Gifts
Hidden in traditional giving programs is a mighty employee engagement tool, and corporate leaders have figured out how to supercharge the device. It is matching-gift programs, with nine of 10 companies offering at least one matching gift program (Giving in Numbers: 2018 Edition).
Matching-gift programs can be either open or dedicated to a specified cause, year-round or in specific windows of time. Giving in Numbers also found that of the 92 percent of companies where matching gifts are offered, 80 percent had a year-round policy, 53 percent offered a “Dollars for Doers”-like program (defined by CECP as corporate or foundation giving to nonprofits in recognition of a certain level of employee-volunteer service to that organization), 48 percent matched donations for disaster relief, and 46 percent had other workplace giving campaigns in place.
All forms of matching gift programs have proved successful, though companies that have open matching policies tend to attract more employee giving as employees respond positively to freedom of choice. Companies with open programs allocated more monetary resources in terms of median matching gifts than those with limited programs: $2.36 million and $1.39 million, respectively, during 2017.
Corporate leaders might be noting this positive response: The proportion of companies where open programs are available increased between 2015 and 2017 from 51 percent to 55 percent. An open program is one of the best ways corporate leaders let employees customize giving based on their passions.
Employers can also offer flexibility in giving/matching amount, asserting a “no amount is too small” philosophy. For instance, the Bank of America Charitable Foundation normally sets the minimum amount eligible to be matched at $25. However, the minimum amount is lowered to $1 when a natural disaster strikes, encouraging more widespread giving. In 2017 alone, a year notorious for a spate of disasters, Bank of America and its employees committed more than $5 million to support impacted communities.
Some companies combine volunteering and matching gifts by matching employees’ volunteer hours with a contribution to the charity, exponentially increasing the value to the nonprofit. Dollars for Doers enables companies to give to nonprofits in recognition of a certain level of employee volunteer service to that organization. Encouraging employees to get more involved in exchange for substantial gifts to their beloved causes is a great tradeoff that benefits all.
Employee engagement, passion, and purpose are powerful motivators for companies – Gallup’s 2016 employee engagement meta-analysis shows that an increase in all three categories results in greater productivity, improved retention, and an increased reputation for the company. To create new doorways of opportunity, nonprofit leaders should identify their organizational needs and community benefit programs and services.
The nonprofit organization should then approach their existing corporate contacts and new funding partners to discuss these needs, programs, and services to determine which encourage employee-led volunteering or fundraising. When this alignment is achieved, there is extraordinary impact. Companies will view the nonprofit as partner in integrating purpose, and nonprofits will spark engagement, passion, and purpose for prospective donors and volunteers.
Kari Niedfeldt-Thomas is managing director, corporate leadership, at CECP: Chief Executives for Corporate Purpose.
