The Importance of Workplace Giving

In 2006, I co-authored a book for America’s Charities that, among other things, traced the evolution of workplace giving in America. A great deal of research went into the book, chronicling our nation’s instinctive reaction to need in our communities.

The earliest documented reference I could find that resembled present-day workplace giving occurred in 1820, in Lowell, Massachusetts. There, a number of women mill workers held “hat passing” sessions on the shop floor, to support local charities.

The greatest similarity between those hat passing sessions with today’s workplace giving campaigns is the absence of restrictions placed on the funds raised. Presumably, when the women distributed the dollars, they did not specify that the funds could not go to overhead, like heating fuel or rent. The money raised was not earmarked for this program or that catastrophe. They were, by and large, contributions that the charity could use for whatever was needed.

That is the greatest benefit to charities of workplace giving. To the greatest extent, dollars raised through workplace giving are unrestricted. The charity can use this flow of revenue to keep the lights on, to keep good staff on-board, to make sure their doors remain open. Not so, the big disaster relief appeals. Dollars raised for disaster relief had better be spent on that disaster, or the charity will be faced with disappointed donors.

There are a number of other benefits of workplace giving campaigns, too. Here’s what the American Heart Association has to say about workplace giving:

The Workplace Giving Campaign is a unique workplace giving program designed to empower your employees by offering them a choice in the nonprofits they can support. Employees want to be able to choose what charities they will support and are more satisfied with a workplace campaign that gives them this option. Such campaigns achieve greater participation, satisfaction and overall contributions. Giving also allows your company to brand the campaign as your own.

This is a mixed blessing, however. On the one hand, the company is encouraged conduct a campaign. On the other hand, the company is also encouraged to present a broad range of charities, reflecting the desires and needs of the employees. That means that your charity is, to some extent, “part of the pack.”

Now is the time to begin differentiating your charity, positioning your charity for your best exposure in this year’s workplace giving campaigns.

Here are some tips:

• Look to see how you can leverage your existing relationships with employers and donors. Are there employers you know who might make your charity the “Featured Charity” of a workplace giving?
• There may be charities that are delivering services similar to those provided by your organization. What are the primary differentiators (i.e., age group targeted, region with the greatest impact, etc.)?
• At a secondary level, what does your organization offer that similar organizations do not (educational materials, volunteer opportunities, community awareness outreach)?
• How can your volunteer opportunities be re-purposed to bring new workplace donors on-board?
• Look hard at being a leader in workplace giving. If you begin, or deepen a relationship with an employer, the opportunities are increased for your organization to be a driving force in the campaign. And there are special benefits that accrue from being at the planning table – benefits that are not always measurable. Some data that I’ve seen indicate that organizations who have presence in the planning process of a campaign garner significantly greater marketshare.

Here are some bullets, again from the American Heart Association, for talking about the benefits of a workplace giving campaign:

Employee Benefits:

• Increased morale.  Providing choices enhances employee morale, commitment and retention.
• Satisfaction.  Allowing employees to choose increases their satisfaction and participation in company giving.
• Involvement.  Including employees is a powerful way to link their own and your company's interests.
• Ease.  Making payroll deductions to support charities that employees care about is simple.

Company Benefits:

• Demonstrated commitment.  Company-branded campaigns demonstrate to employees and customers that community leadership is a company priority.
• Increased giving.  Case after case shows that when employees are given options, participation rates increase.
• Improved morale.  When donors can make a difference to a cause they care about, everyone wins.
• Greater efficiency.  A giving campaign allows for a payroll deduction program.  That's easy for your employees and allows more money to go to the nonprofits and less to campaign administration.

Charity Benefits:

• Education.  Participating nonprofits can more effectively deliver workplace education and assistance to your employees.
• Lowest fundraising cost.  Company-owned campaigns let more money go to the organizations and less to administer the campaign.