Corporate Giving Programs

Description

  • Corporate giving refers to any financial contribution made by a corporation to another organization that furthers the contributor's own objectives. This can include giving from branches of larger corporations under the auspices of their corporate giving program, e.g. a donation from your local Home Depot. Corporations give to charitable causes either because of the personal convictions of influential leaders within the corporation or, more commonly, to help establish the public perception that the corporation is a good corporate citizen. Corporations provide four different types of support: cash (including sponsorships), product donations, pro-bono or skills-based volunteers, and employee volunteers.

Timing

  • We suggest that you explore funding from local businesses or corporate giving programs before approaching corporate foundations. Their support will provide credibility when applying to corporate foundations.

  • A common funding approach is to work with the local business first (for example, an insurance agent in your community). After establishing a good relationship with the agent, ask for an introduction to the regional or national corporate giving office and approach them for support. Once you have that support, you can consider applying to the corporate foundation. [0]

Diversify

  • According to Giving USA, in 2019, giving by corporations grew by 13.4%. If you have an ongoing relationship with a corporation, it may be wise to increase your next request by 12% to 14%.

Prepare

  • Corporations offer funds that are allocated directly via the business and therefore can often be used for general operating support. You want to aim for a steady stream of smaller amounts of money from businesses in your area. No other funding source understands the necessity for general operating support as well as businesses do.

  • National and international corporations are often looking for ways to reflect society’s social conscience. If you have traditionally stayed away from soliciting corporate support because you felt your mission was too radical, now may be the time to rethink your approach. This mainly applies to national and international corporations, not local businesses.

  • Many companies are seeking deeper impact through their corporate giving programs by investing in fewer recipients but making larger grants. This speaks to the importance of collaborations. If you want to engage regional or national corporate funders, you are likely going to need partners. More partners mean more impact.

  • Corporate social responsibility (CSR) has become more important as consumers have signaled their interest in buying from socially responsible companies. To build your corporate giving component, determine who your supporters are (members, donors, etc.), create a profile on these supporters, and use that information to approach companies that are targeting these same groups.

  • National and international corporate giving is often geared towards funding ideas that can make the transition from one solution or small effort to a scalable initiative that has an ongoing impact. As you strengthen the corporate giving component of your grants portfolio, keep this in mind.

  • Manufacturing companies are leaders in corporate giving, especially in the area of international giving. As you diversify your grants portfolio, look at manufacturing companies that demonstrate a compatibility with your mission.

  • Funding from corporate giving programs, especially regional businesses, can be fairly dependable year to year, so securing this funding can become a reliable source of revenue.

  • If you are just beginning to pursue corporate support, keep in mind that many businesses and corporations provide in-kind contributions of products and services. Requesting an in-kind contribution is actually a good way to begin a relationship that may turn into ongoing cash support.

Find

  • Remember that corporate giving committees respond most favorably to requests that both reflect the interests of the corporation and serve the geographic regions that matter to the corporation. 

  • Corporate giving programs are run by the company itself, often through a dedicated department such as Community Relations. Unless the company chooses to publicize it, you might have difficulty finding who and what a corporate giving program supports and how much it has given. Try reviewing the “About” section on the company’s website to find out about their philanthropic focus. You can also send an email to the Community Relations staff requesting information.

  • Watch for business mergers and acquisitions, as they often result in the corporate giving budget exceeding historical contributions.

  • Go to our Charitable Giving database for the U.S. or Canada and use the Type of Grantmaker filter to select “Corporate Giving Program.”

Apply

  • It is estimated that medium to large corporations receive at least 50 letters a week from nonprofits that want donations. To rise to the top of this list, you need to approach your request in a creative way. For example, consider asking for in-kind support by tapping into corporate employees’ talents along with your cash request. This combination can make for a more powerful application!

  • Just as increased profits do not always equate to higher charitable giving for businesses, a decrease in profits does not mean corporate giving will go down. Do not negotiate with yourself! Do the research and base your request on their current giving pattern.

  • Accessing new markets is at the top of many corporation goals. If you are weaving corporate giving into your overall grants portfolio, you will want to demonstrate what "market" they will be able to tap by aligning their support with your work.

  • When you approach a corporation for support, demonstrate how funding your work makes them a better public partner. Our society increasingly sits in judgment on corporations, both their actions and their inactions. The long-term health of a corporation hinges on society feeling as if the company is doing good in the world—not harm.

  • Companies are promoting the development of actionable charitable initiatives and inspiring other leaders to follow suit. This speaks to clearly articulating the projected outcomes of your program in your request, not just in terms of those you serve but the impact your programs will have on the company’s charitable focus.

Manage

  • Consider issuing a Memorandum of Agreement (MOA) whenever you receive funding from a corporation. MOAs are basic business practice and can help build a strong relationship with your corporate donors. An MOA helps the corporation feel confident that what you discussed, and what will happen, are the same. MOAs are the professional approach to take, regardless of the simplicity of the request or the amount of the donation. 

  • Your attention to detail, and the formality of the MOA, will make many business leaders sit up and take notice. You are now playing their game, on their field, with their equipment, and talking to their audience.

    • If you have an MOA in place, next year’s request becomes much easier because you have established that you will deliver a year-end report detailing how you spent their donation and the outcomes that resulted. As part of submitting this report, you can make a pitch for the upcoming year’s support.