The Future of Corporate Philanthropy & Matching Gifts

The Future of Corporate Philanthropy & Matching Gifts

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Corporate philanthropy has always played a vital role in supporting nonprofit organizations and communities. However, in recent years, the landscape of corporate giving has evolved, and businesses are rethinking how they contribute to social causes. One of the most influential shifts has been the rise of matching gifts, a form of corporate giving that allows employees to double or even triple their donations through employer matches. As corporate giving continues to expand and evolve, the future of corporate philanthropy (and matching gifts in particular) holds enormous potential for both companies and nonprofits.

In this post, we’ll explore the key trends shaping corporate giving, how companies (and nonprofits) are adapting to the changing landscape, and how organizations can capitalize on these opportunities to drive long-term success. This will include:

Corporate philanthropy has seen a steady rise over the past few years, with corporate matching gift programs emerging as a critical component of workplace giving. As we move forward, matching gifts are expected to continue expanding in both scope and impact, helping companies engage employees and nonprofits raise more funds. Understanding these shifts and how they align with overall CSR strategies is crucial for both companies and nonprofits looking to maximize their social impact.

Now, let’s take a deeper dive into the future of corporate philanthropy and how these trends will shape the sector in the years to come.

The Evolving Landscape of Corporate Philanthropy

Corporate philanthropy has always been a way for businesses to contribute to society, but it’s no longer just about writing a check at the end of the year. Companies are now more intentional in their philanthropic efforts, aligning them with broader Corporate Social Responsibility (or CSR) goals that focus on making a positive impact on society, the environment, and the workforce.

Today, corporate giving is shifting toward long-term, sustainable initiatives. Companies are increasingly recognizing that their CSR strategies need to reflect a commitment to social good rather than just financial contributions. With the rise of employee-driven giving initiatives like matching gifts and other programs, businesses are not only promoting charitable giving but also fostering employee engagement, loyalty, and brand reputation.

Growth of Corporate Giving

Corporate giving has been growing steadily over the past few years, reaching record-breaking figures. In fact, the most recent Giving USA report indicates that corporate giving reached $44.4 billion, with matching gift programs accounting for a significant share. What’s driving this growth? For one, there’s an increasing recognition of the importance of giving back. Additionally, both consumers and employees are demanding that companies do more to contribute to the communities they serve.

But it’s not just large enterprises that are getting involved; small and mid-sized companies are also stepping up their philanthropic efforts. Many are offering matching gift programs, volunteer grants, and other workplace giving initiatives. The future of corporate philanthropy is poised to be more inclusive, with businesses of all sizes playing an active role in supporting charitable causes.

As the landscape of corporate philanthropy continues to evolve, several key trends are driving the future of workplace giving. These findings are shaping how companies approach corporate social responsibility and matching gift programs.

Here’s what we can expect to see more of in the years to come:

1. Increased Focus on Employee-Driven Giving

Employee engagement is a central theme in the future of corporate philanthropy. Companies are recognizing the power of their workforce to drive charitable giving, and many are rolling out year-round programs that encourage employees to get involved. By offering matching gifts and volunteer grants, for example, businesses empower employees to make a greater impact on the causes they care about.

2. The Shift Toward Year-Round Giving

While companies used to concentrate their giving efforts around specific times of year, such as the holidays or major fundraising events, there’s a growing trend toward year-round giving. Businesses are increasingly investing in continuous employee-driven giving initiatives, such as matching gifts and ongoing volunteer opportunities, to ensure philanthropy remains a consistent part of corporate culture rather than a one-time occurrence.

3. The Rise of In-Kind Donations and Volunteerism

In addition to financial contributions, many businesses are focusing on in-kind donations and corporate volunteering. These programs allow companies to donate goods or services rather than just money, which can be a valuable way to support nonprofit organizations. Volunteerism is also growing as companies recognize the benefits of giving employees the opportunity to contribute their time and skills to social causes.

The Role of Matching Gifts in the Future of Corporate Giving

Matching gift programs have been around for decades, but they are poised for even greater prominence in the future of corporate philanthropy. After all, matching gifts are an essential part of workplace giving because they allow employees to increase the impact of their donations.

As companies and employees both focus on maximizing their charitable impact, matching gifts are expected to become even more integral to corporate giving strategies. Here’s what we expect this to look like:

1. More Generous Matching Gift Programs

Many companies are becoming more generous with their matching gift programs. Increasing match ratios, raising the maximum donation amounts, and lowering the minimum donation requirements are just a few ways businesses are making matching gifts more accessible. This trend is likely to continue as businesses recognize the ever-growing importance of encouraging employee participation in philanthropic efforts.

2. Expanding Match Eligibility

Another key development is expanding matching gift eligibility to include more employees. Companies are increasingly offering matching gifts to part-time employees, retirees, board members, and even spouses. This broadening of eligibility is helping businesses engage a larger portion of their workforce in charitable giving, which is essential for expanding the reach and impact of matching gift programs.

3. Simplification of the Matching Gift Process

As more companies seek to streamline their matching gift programs, the processes involved with submitting and tracking matching gift requests are becoming easier. Tools like Double the Donation and other matching gift software platforms allow employees to quickly and easily submit their match requests. This simplification reduces barriers to participation and increases the likelihood that employees will take advantage of matching gift opportunities.

How Companies Are Adapting Their CSR Strategies for the Future

As we look toward the future of corporate philanthropy, companies are adapting their CSR strategies to meet the demands of employees, consumers, and nonprofit organizations alike. Here are a few ways businesses are evolving:

1. Integrating Corporate Giving with Business Strategy

More companies are integrating their philanthropic efforts into their core business strategy. By aligning their CSR objectives with their mission and values, businesses are creating a more authentic and impactful giving strategy. This alignment helps strengthen brand loyalty and attracts passionate employees who want to make a difference.

2. Increasing Transparency and Impact Reporting

Transparency is becoming increasingly important in corporate giving. Companies are expected to report on the impact of their philanthropic initiatives, including matching gifts. By providing detailed reports on how donations are being used and the difference they’re making, companies are enhancing their credibility and fostering greater trust with both employees and the public.

3. Focusing on Long-Term Partnerships with Nonprofits

Another key evolution in CSR is the move toward long-term partnerships with nonprofits. Rather than one-off donations or short-term collaborations, companies are seeking to build lasting relationships with organizations that align with their mission and values. These partnerships allow companies to create more meaningful, long-term impact, rather than just giving sporadically.

How Nonprofits Can Leverage Corporate Philanthropy Trends

Nonprofits have an incredible opportunity to tap into the growing trend that is corporate philanthropy. Here are a few impactful ways they can do so:

1. Promote Matching Gifts to Donors

Nonprofits can increase their revenue by promoting matching gift opportunities to their donors. Many donors are unaware that their employer will match their donation, so it’s crucial to actively educate and encourage them to take advantage of matching gift programs. For the best results, incorporate matching gift information throughout your social media, email marketing, donation process, nonprofit website, and more.

2. Build Relationships with Companies

Nonprofits should build long-term relationships with companies by focusing on corporate partnerships that align with their mission. By working closely with companies on charitable initiatives, nonprofits can ensure ongoing support and increase the impact of their programs. Keep in mind that your current donors’ employers can be some of your greatest prospects!

3. Keep an Eye on Program Updates

Make sure your team stays up to date on workplace giving program updates, as companies are refreshing their initiatives every day. The easiest way to do so? Use a matching gift database that tracks these changes and provides you and your donors with the information you need at your fingertips.

The Impact of Technology on Corporate Philanthropy

Technology has revolutionized nearly every aspect of business operations, and corporate philanthropy is no exception. While historically, enterprise CSR platforms were designed to meet the needs of the largest companies, advancements in technology have now made corporate giving software accessible to businesses of all sizes, including small ones. Today, any-sized companies can implement corporate giving initiatives, such as matching gift programs, thanks to user-friendly platforms that simplify the process.

These platforms, such as Selflessly, Millie, and Uncommon Giving, cater specifically to smaller businesses, allowing them to offer matching gift programs and other charitable giving initiatives. What’s more, many of these platforms are CLMA-certified, a designation by Double the Donation that recognizes providers with an integrated auto-submission feature for matching gifts. This innovation ensures that the matching gift process is as seamless as possible for donors, making it easier for individuals to submit matching requests and for companies to manage their contributions.

As more companies embrace these tools, more funding becomes available to nonprofits, creating a win-win situation for both the corporate world and charitable organizations.

In parallel, nonprofit technology continues to evolve, streamlining the donation and matching gift submission process for donors. This increased efficiency means donors can submit matching gift requests quickly and accurately, while nonprofits can track and manage corporate gifts more easily. As these technologies advance, they continue to reduce friction in the donation process, enabling nonprofits to raise more funds and engage more donors.

Wrapping Up & Next Steps

The future of corporate philanthropy is bright, with matching gifts at the forefront of this evolution. As companies continue to embrace employee-driven giving and expand their philanthropic efforts, nonprofits have a tremendous opportunity to capitalize on these trends to raise more funds and foster long-term relationships with corporate partners.

To stay ahead of these trends, both companies and nonprofits must focus on increasing transparency, embracing technology, and making corporate giving programs more accessible and impactful. By doing so, they can ensure the future of corporate philanthropy benefits all stakeholders.

For nonprofits aiming to make the most of matching gifts and broader workplace giving:

Raise more with matching gift automation software

For companies looking to get started with or scale up their corporate giving:

Drive matching gifts with the right software