Managing Your Company's Employee Giving Charitable Payroll Contributions

Are you managing your company's charitable donations as cost-efficiently as you could be?
Mar 13, 2018 4:00 PM ET

According to America’s Charities’ Snapshot 2017 report, 87% of companies understand there is an expectation to support causes that are important to employees. So for many employers, giving employees the opportunity to donate to charities through workplace giving is a no-brainer. The big challenge is execution. 

46% of employees donate money through employer-sponsored workplace giving programs, accounting for more than $4 billion in charitable contributions each year. Workplace giving donors give on average five times more than traditional one-time donors, and because donations are typically deducted from paychecks all throughout the year, it’s not only less of a burden to the donor, it provides nonprofits with support they can count on all year long. But how exactly does all of that money exchange hands? 

After employees pledge their support to charities, how does the employer ensure secure, timely, and cost-efficient delivery of employee donations to the appropriate designated nonprofits? And just as importantly – WHO is responsible for completing this big undertaking?

Sometimes, companies attempt to facilitate employee giving programs and charitable funds management in-house thinking that it’s the easiest and most cost-efficient way. However, a partner like America’s Charities can minimize the time and real costs for payroll and other staff to manage giving programs and reduce the costs to nonprofits in managing individual donations received from employees. Processing costs can be as high as 25% for a nonprofit while combined funds distribution can reduce those costs to less than 10%. These reduced administrative costs result in savings to the company and more funds distributed to the nonprofit organizations being supported. 

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