How (and Why) to Approach Charitable Giving Strategically

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In 2019, the Business Roundtable released a statement that explained how a corporation’s purpose is to serve all stakeholders –– not just shareholders. It’s to promote an economy that serves everyone –– not just a handful of people.?

And it’s certainly not just to make money. (Even though it sometimes seems that way!)?

The statement also outlined a more modern standard for corporate social responsibility (CSR). Historically, organizations have used CSR to boost their reputations and improve their public image.?

But it’s been shifting in recognition of reality. There’s social injustice. There’s political upheaval. There are a lot of problems in the world. And businesses have a responsibility to make the world a better place.?

So what role do leaders have? How should leaders think about charitable giving –– and why is a strategic approach to giving so important for leaders today??

Three incredibly compelling reasons to give

The number one reason is that your employees expect it. And the stats back this up:

• 70% of employees demand some sort of social responsibility from companies.
• 93% of employees believe that organizations must lead with purpose.
• 71% of employees say it’s imperative or extremely important to work for a company that has a culture supportive of giving and volunteering.
• 64% of millennials consider social environmental practices when deciding where to work.
• 83% of millennials are more loyal to companies that contribute to causes that support bettering communities or the environment.
• Employees are two times more likely to be engaged at work, 5.6 times more likely to trust company leadership, and 3.6 times more likely to recommend talent from their networks if there’s a sense of corporate giving.?

But these expectations aren’t limited to employees. Your customers and investors are looking for it, too. 77% of consumers are motivated to purchase a product based on a company's commitment to make the world a better place. And 41% of millennial investors put significant effort into understanding a business's CSR practices. They want to work with businesses that take an active role in addressing social, economic, and environmental issues.

And companies are on board, too. There’s a growing realization that they need to take care of the local communities because they only thrive if the local communities, where their employees live, work, and play, thrive.?

But giving isn’t just about money

Sure, money is probably the first thing that comes to mind when you think about charitable giving. But the definition of giving has really moved away from just donating money to a cause.

There are so many other ways to give!

Here are a few quick examples of how you can diversify your giving and increase your impact:

• Give your time. At PA Consulting, we do a lot of volunteer days, creating opportunities organized activities where we volunteer in our communities together. You can encourage employees to volunteer by offering time off work to support a charity.?
• Offer matching gifts. 65% of Fortune 500 companies are offering matching gift programs. Your company can set up a gift matching program where an employee gives a certain amount to a charitable cause and you simply match it.?
• Donate in-kind. You can give goods, like extra inventory, equipment, or software. You can even donate experiences to fundraisers, especially if you’re a highly experiential business, like a restaurant, a hotel, or a tour company. Or you can offer your building as a meeting place, which is great for groups that gather on the weekends. (You’re not using the office, so someone else can!)
• Share your expertise. If your company provides services, like accounting or branding, you can offer support to nonprofits. At PA Consulting, we performf pro bono work, helping nonprofits with their strategies and innovation processes.?

So how can you get started with strategic charitable giving?

If you don’t have an organized charitable giving program ––?or if you want to improve yours –– here are a few tips for giving more strategically.

• Create a mission statement. And make sure it’s aligned with what you’re trying to accomplish with your giving. Your mission statement can give your organization focus, energize team members, help you say no to opportunities that aren’t good fits, and increase your impact over time.?
• Choose nonprofits you believe in. It’s one thing to support of-the-moment causes; it’s another to go all in on one that aligns with your mission statement ––?and invest in it for the long haul. You can make unrestricted, multi-year commitments that signal your support will be ongoing, really maximizing your impact.?
• Nurture a culture of giving. Remember that employees want a culture of giving. So think about how you can involve them and how you can get their input on your mission statement and the causes you’ll support. Can you create incentives for volunteering? Or offer time off for volunteering? What can you do to make sure people join in?

It’s important to treat charitable giving as a sustained effort. It’s not something that happens one day a year. We have to bake it into our organizations, and creating a mission statement, supporting nonprofits you believe in, and nurturing a culture of giving make it easier to give strategically and have a bigger, more meaningful impact.

Charitable giving is a wise decision –– one that requires wise leadership. Next week, I’ll be sharing what exactly it means to be a wise leader, how to make wise decisions, and why wise leaders make wise organizations. I’ll see you on Tuesday, December 6 at 9 am PT!

Your Turn

I’d love to hear how you’re approaching charitable giving –– as an organization and as a leader within your organization. And how does that tie back to you and your personal values and beliefs? Please share in the comments how you’re thinking about giving in a more strategic, impactful way.