During 2018, corporate philanthropy in the U.S. was responsible for over $20 billion in donations to various charities across the 50 states. That number was noticeably higher than the one in the prior year. It was also one of the highest amounts ever reached in the U.S. When those figures are cross-referenced with historical patterns, it seems fair to expect the donations in 2019 to be even higher. And rightly so. After all, one of the most meaningful ways in which companies can contribute to their communities is by employing philanthropy.
The reason why many businesses fail to help their communities boils down to their inability to find an efficient strategy to do so. This happens when there are disagreements between the senior management and those charged with governance on potential methods of giving back. Fortunately, according to a seasoned and established philanthropist, Rusty Tweed, there are a few easy ways to implement a culture of giving into practically any organization.
Allow On-the-Clock Volunteering
A large number of professional service organizations have recently turned to the on-the-clock volunteering method of philanthropy. The way that it works is based on paying employees for something that has nothing to do with their job. Instead, they are incentivized by compensation to find a volunteering event and participate for a full working day. There are a few important benefits from this strategy and they include higher worker motivation, productivity, and, most importantly, better community relations. The fact that the employees get to pick what type of event they want to attend is also an outstanding way to let them engage with causes that they personally value. After all, not all members of an organization are going to have the same background. Hence why it is not surprising that they may want to participate in different volunteering openings.
Provide Platforms for Workers to Donate
Since people may not have enough time to attend volunteering opportunities, it is crucial to establish a platform where they can submit financial donations. This will act as a direct alternative to anyone who would rather focus their philanthropy on monetary assistance. In most cases, however, companies do not have a formal way to gather funds for their community and simply let their employees donate through external parties. While there is nothing wrong with that approach, having a centralized platform where all donations can be gathered will increase the number of those who give back. That way, the cumulative amount of money gathered for the community will grow and the business will be able to assist more people.
Set Aside a Portion of Profits
Finally, Rusty Tweed stresses that companies should never rely solely on their workers to be philanthropic. They must also lead by example and ensure that they showcase a long-lasting track record of donations to charitable causes. The easiest way to do something like this is to determine what amount of profits can be set aside and given back to the community. Obviously, that percentage will depend on the current state of the economy, revenues, expenses, and similar. Regardless of the actual dollar figure, simply having an approved course of action that lets the business make perpetual donations will be a perfect embodiment of the philanthropic spirit.
Some other ways to incorporate philanthropy into the company include things like formal meetings where employees are introduced to community events, newsletters, and so on. Before getting into these options, however, it is important to consider the ones mentioned above as they have been proved to work very well in every market