What is corporate giving?

Corporate giving describes the donations made by corporations and private companies towards charitable causes. This can be in the form of a cash or in-kind gift to a charity or community organisation.

Corporate giving has been defined as the total contribution by a company as calculated by the LBG model – a commonly used method by corporations, albeit not universally by FTSE 100 companies. This includes cash and in-kind donations in addition to the value of work hours donated through employee volunteering schemes and any management costs incurred in implementing community investment initiatives. The sum of these donations constitutes the total donation figure and includes donations made both in the UK and internationally.

Why companies give to charity

Philanthropy is a powerful tool for driving sustainability. and enables businesses to open a meaningful dialogue about their social values and aims with a breadth of stakeholders - employees, customers, investors and wider society – in order to achieve positive change. Businesses increasingly have a wider influence and reach than many government and public bodies, and those that do embrace philanthropy fully are quickly becoming best practice role models within their own sectors and beyond.

Philanthropy is about identifying the causes of social problems and providing tools to fix them. Good philanthropy takes many forms, from ad-hoc monetary and time donations, to more pioneering and strategic social investments. When corporate giving is used effectively, it has the power not only to deliver transformational and sustained change, but also to influence society’s behaviour significantly.

Here are five reasons companies give to charity:

  • Support causes they care about - By choosing to get involved in philanthropy, organisations are able to make effective social change to causes that mean the most to their stakeholders.
  • Help the community - Corporations are able to make a big difference on a national scale, but they also realise the benefits of helping the local community. For one, they are able to see the effects of their efforts more immediately and are more likely to come into contact with those that they are helping.
  • Improve reputation - Being involved in philanthropy is a great way to show the public that you are a company that cares and one that can be trusted. It will allow you to build a stronger relationship with your customers – and gain new ones.
  • Attract and retain employees - Philanthropic companies look beyond profit and try to build a more positive and engaging workplace environment where people want to work. They enable their employees to feel proud to be part of a business that is making a real difference to the lives of those in need and are more likely to work there for longer as a result.
  • Build company loyalty - Building loyalty, both internally and externally, is an important factor for companies to consider. By being philanthropic, they can benefit wider society, engage their employees with their corporate social responsibility, and maintain a positive public perception.
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How your company can maximize its impact

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