Corporate Matching: A Catalyst for Corporate Giving

In a world where consumers and employees alike are looking to companies to help them support causes that they care about as part of existing customer and employee experiences and where companies struggle with how to truly engage their stakeholders in “doing well by doing good” corporate matching can be an important aspect of building philanthropy into business. Matching offers are becoming a more popular way to have a greater impact, and do so in a much more memorable way. 

Following are 5 reasons to consider corporate matching in the context of cause marketing and employee giving:   Reason #1 – Corporate matching is a catalyst for giving   Whether it’s a cause marketing offer presented to a customer (i.e.: a % of $ value of this item purchased will be donated to charities; add a donation on to an already occurring purchase transaction) or a workplace giving program available to employees, presenting a matching offer (funded by the company, employer or corporate partners) increases participation:

• Matching programs increase total donations: The existence of a matching gift increases total donation response rates by more than 20%. (Source: Analysis conducted by Giving USA, 2007)

• 92% of companies surveyed indicate that having a match program increases participation. (Source: LBG Associates, Workplace Giving Works, Make it Work for You, 2010)

  Reason # 2 – Corporate matching matters to employees in workplace giving programs   Employees are clear that corporate matching is an expectation they have of their employers’ workplace giving programs and is a motivating factor in making a donation in the workplace:

• 81% of employees think it’s important that their companies match their giving. (Source: 2010 Cone Cause Evolution Study)

• Over 60% of surveyed employees cited their primary motivation for workplace giving is the fact their employer matches donations. (Source: Australian Charities Fund, Cutting to the Heart of Workplace Giving, 2010)

  Reason # 3 – Corporate matching leverages existing community investment/cause marketing/corporate philanthropy budgets   Corporate matching is a way for companies to leverage their existing budget to create a greater social impact. Here’s how: suppose ABC company has a budget of $500,000 and has selected Charity X or five charities in the Women’s Health area to support via donations. Instead of directly making the donations, the company could engage their customers and employees with an optional opportunity to support Charity X or the ABC Women’s Health Fund. The company can leverage its existing budget by engaging its stakeholders and ultimately donate a greater total amount to the chosen charities.   Reason # 4 – Corporate matching helps increase transparency of corporate giving   Corporate matching can provide an opportunity for companies to address head-on the question many consumers or employees have around corporate giving: what are you as a company doing to support the cause(s)? Corporate matching offers to customers or employees are chances for clear communications from companies about how they are supporting causes and the details about their corporate giving.     

• 90% of consumers want companies to tell them the ways they are supporting causes. (2010 Cone Cause Evolution Study)

Reason # 5 – Corporate matching helps create (an authentic) brand halo effect   Corporate matching can effect a well-earned reputational boost since increased participation, social contribution and the opportunity to connect in an authentic and transparent way with stakeholders can positively impact the perception and reputation of companies in the eyes of its customers and employees.

• Companies say payroll giving and business matching reinforces their business’ positioning as a good corporate citizen. (Source: Australian Charities Fund, The Giving Business, 2009)

 

Introducing Benevity

In today’s climate where companies have a growing need to deliver authentic social responsibility and community investment programs, and where individuals feel more strongly about supporting worthy causes with micro-donations, Benevity offers a powerful and incremental way for corporations to make a difference. Benevity’s goal is to help build user-driven giving opportunities into all types of existing online interactions to involve customers and employees in giving to causes they care about; building greater loyalty, differentiation and customer and employee stickiness.   Companies can use Benevity to create choice-driven cause marketing, workplace giving and other charitable programs.  Benevity wants to help companies and their customers, employees and partners turn “feel good” into real good, and change the landscape of philanthropy in the process.  Find out more at www.benevity.org and by viewing our short video at www.benevity.org/goodness3.0. 

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