The Ripple Effect: How Business Can Be The Catalyst Of Social Change
Written by Matthew Nash
See original piece on Forbes
Picture a world where every American felt empowered to support nonprofits that meant the most to them. In recent years, nonprofit support has been declining, so The Generosity Commission (TGC)—a nonpartisan group of leaders, including myself—was founded as a premise to reshape how people give and celebrate individuals and groups driving positive change. In our recently released nine recommendations to inspire everyday actions to support nonprofits’ vital work, we touch on how businesses can encourage employees to volunteer and give. This closely aligns with my full-time work as the executive director of an organization that encourages companies and employees to find nonprofits they want to support and then delivers donations (often from workplace giving programs) to those nonprofits.
Supporting nonprofits is an opportunity to bring people together and inspire change. People who come together under a shared mission can develop meaningful relationships and collaborations. Action can make a meaningful impact, no matter how large or small.
Action For Companies
In 2023, almost 27 million Americans had access to giving programs through their workplace. However, it’s estimated that up to 78% of employees were unaware their company offered this program. So while an impressive $5 billion was donated to nonprofits through workplace programs, an estimated $4 billion to $7 billion that was earmarked for charitable giving went un-donated.
To address this, companies should promote their CSR initiatives, encourage employees to support causes that are meaningful to them and ask leaders to showcase their charitable efforts and passions to create a culture of philanthropy and community support. Workplace giving programs benefit nonprofits, engage employees, serve as a valuable recruiting tool and simultaneously boost a company’s CSR efforts and public perception.
Impact On Nonprofits
Regular donations, like those made through workplace giving programs, are vital for nonprofits. Employee donations often come with a corporate match, doubling or sometimes even tripling the original donation. Workplace giving can create lifelong donors by igniting a passion for giving.
Corporate-led volunteer events help nonprofits increase their awareness in the community. Notably, volunteers donate an average of 36% more than non-volunteers. When companies engage in volunteer events, the benefit is three-fold: They engage their employees, give back to communities and support internal CSR goals. Nonprofits, in turn, receive critical hands-on support and increase their visibility.
Giving programs open doors for nonprofits to pursue additional collaborations with these companies. These opportunities can include sponsorship, volunteer events, giving campaigns, etc. and can provide valuable support toward achieving the nonprofit’s mission.
Impact On Companies
Companies of any size can support employee giving by encouraging them to support causes they feel passionate about, organize volunteer days or establish a more formal giving and volunteering program. There’s no one-size-fits-all approach to corporate philanthropy.
Offering giving programs supports company recruitment strategies, especially with Millennials and Gen-Z, who now make up nearly half of the workforce and prioritize social good in their work and personal lives. Companies with a mission-driven approach are more likely to attract and retain top talent with these growing audiences.
Workplace giving programs also help increase employee engagement levels, which helps improve retention and reduces turnover. Additionally, companies that promote their philanthropy and CSR initiatives enhance their reputation among their customers and the community. By incorporating give-back initiatives into company culture, businesses can create a ripple effect of social good to influence the community and industry peers to act as a force for good.
Impact On Employees
When people support nonprofits, whether that be through donations or volunteer work, it triggers a dopamine effect, which makes them feel good and encourages them to continue supporting social causes. It also fosters social connectedness and strengthens community bonds, which also encourages others to offer support.
Workplace giving programs offer employees a taste of philanthropic support and encourage ongoing giving habits. According to the 12th Annual Report on Corporate Social Responsibility and Employee Engagement Trends from YourCause by Blackbaud, an employee donates an average of $1,140 per year, which includes a company match. Can you imagine how much better our world would be if everyone made that commitment for their entire career?
When employees are happier at work, they are more likely to perform better. When employers encourage their employees to give back, they are allowing them the opportunity to connect with community members in new and different ways. In our digital world, it’s easy to feel isolated. When we give back and volunteer, we connect with others and interact in ways that make us feel less isolated.
Business leaders play an integral role in supporting workplace giving programs. Leading by example and encouraging others to support nonprofits that align with their values can help encourage nonprofit support. They can also educate the workplace about local issues and integrate CSR programs into company strategy to encourage broader support. CSR programs don’t have to be complex; they can start with a few hours of paid time off per year, a company-wide service day or launching a donation campaign. Starting small and growing to fit the needs and passions of the business will help create an effective CSR program that employees want to support.
Businesses can have a powerful impact on their community and employees. Companies that showcase their dedication to the community and organizations in need can create lasting, positive change. Companies should step up and encourage employees to take part in (or launch) giving programs to support causes that are meaningful to them.