What is Employee Giving?

What Is Employee Giving? 

Employee Giving, also known as workplace giving, is a practice which sees employers encourage and support their employees to give back to good causes and non profits through a range of dedicated workplace campaigns or incentivised schemes.

Employee Giving can be achieved in a number of ways. The most popular is via fundraising, which may take the form of official campaigns led by the business, or initiatives run by individual employees. It can also range from payroll giving (where employees donate a portion of their salary to a non-profit organisation of their choice) through to funding for volunteer grants (often referred to as a “dollars for doers” scheme) and matched donations.

No matter the format, Employee Giving can be characterised as an employer-backed program that aims to make charitable donation easier and more attractive for their employees.

The benefits of Employee Giving campaigns reach beyond the non profits that they support. They can also provide a sense of purpose and community for employees.

In this blog article, we will explore the benefits of Employee Giving for both employers and employees, and how it can be implemented successfully in the workplace.

Why Is Employee Giving Important?

Employee Giving programs provide a range of benefits for both charities and businesses. For non-profit organisations, Employee Giving can represent an excellent source of income that can be relied on over time. This allows them to plan and execute their programs more effectively, without the worry of financial uncertainty.

From the employee's perspective, giving has been proven to stimulate the brain’s mesolimbic pathway (its “reward centre”) while releasing endorphins. This can lead to what is known as a “helper’s high” – increasing self esteem and fighting feelings of anxiety and depression. By participating in sanctioned Employee Giving initiatives, employees can also expect to see their donations go further – either through gift-matching schemes, or via the tax savings linked to payroll giving.

In addition to supporting charitable causes, Employee Giving programs also offer a range of benefits for businesses. When employers support Employee Giving, they send a message that they care about social responsibility and their employees' wellbeing. This can lead to improved employee morale, engagement and loyalty, which in turn can have a positive impact on retention rates and productivity.

Furthermore, employers can receive awards and recognition for their contributions to charitable causes, enhancing their reputation and brand value. Overall, Employee Giving is a win-win situation for all involved parties.

How To Manage Employee Giving 

Employee Giving schemes have become increasingly popular over the past few years, as companies recognize the importance of corporate social responsibility and the impact it can have on employee engagement and retention. In order to manage Employee Giving more effectively, many organisations are turning to digital transformation, using technology to streamline the process of organisation and communication, to maximise engagement among their employees.

One of the key elements of successful Employee Giving programs is having clear workflows for opting in and out. By providing clear instructions and making it easy for employees to participate, companies can ensure maximum engagement and participation, as well as satisfaction with the scheme itself. Digital tools such as online portals, mobile apps and email communication can help simplify the process and make it more accessible to employees.

For fundraising initiatives, it’s helpful to have access to a platform that not only makes it easy to set up campaign pages, but also to help encourage engagement and external promotion via social media integrations. Fees should also be taken into account, as these can have a big impact on the final total donations reaching the nonprofits. KindLink offers individual employee accounts, meaning all team members can take control of their fundraising activity, and additionally, takes no fee from donations, meaning the maximum amount reaches the good causes being supported.

KindLink’s Payroll Giving software offers individual employee donation history and management, as well as company-branded employee sign up page and easy automated donation matching. Learn more about our payroll giving solution here. Additionally, KindLink’s Employee Non Profit Accounts feature brings transparency and efficiency to an individual’s ability to make and track their donations over time.

Great communication is also critical to the success of Employee Giving programs, both internally and externally. Clear and consistent messaging about the program's purpose, impact and benefits can help build employee buy-in and engagement, while effective external communication can help promote the program and raise awareness of the company's commitment to social responsibility.

Overall, digital transformation is having a significant impact on the effectiveness of Employee Giving programs, by improving engagement, streamlining processes and enhancing communication.

Workplace Giving Trends 

Workplace giving has evolved in recent years, with businesses exploring different ways to support charitable causes and engage their employees. Developments within fundraising have been characterised by an increase in empowering employees to take the initiative, and by creating the opportunity for a wider range of nonprofits to be nominated and supported. When a charitable choice is given, employee participation in fundraising is shown to increase.

Another popular approach is gift matching, where companies match the donations made by their employees, doubling the impact of their charitable contributions.

Dollars for Doers schemes, where companies make donations to charities in recognition of the volunteer work carried out by their employees, are also increasingly popular. This not only supports charities but also encourages employees to get involved in community work and volunteerism.

Microsoft, to give one example of a business deeply invested in this strategy, has been running a Dollars for Doers scheme for almost 20 years. Microsoft provides a grant of $25 for every hour an employee volunteers with a nonprofit. There is no minimum number of hours required to request a grant. Additionally, Microsoft also offers a gift matching program, up to a maximum of $15,000 per year for current employees at a 1:1 ratio.

Automated payroll giving has also gained traction in recent years, and enables employees to set up automatic deductions from their pay checks, making it easy and convenient to support charitable causes on an ongoing basis.

Employee fundraising campaigns have also become popular, with companies encouraging their employees to raise funds for a particular non-profit or cause. This approach can be an effective way of engaging employees, fostering teamwork and building a sense of community.

Overall, the direction of workplace giving is towards greater customisation, flexibility and employee engagement. By adopting a range of approaches, businesses can tailor their programs to meet the needs of their employees, support their chosen charities and enhance their reputation as responsible corporate citizens.

Through the Employee Non Profit Accounts feature, KindLink makes it easy for employers to reward participation in ESG initiatives, making direct contributions that employees can then donate to a cause of their choice.

Employee Giving Platforms 

Streamlining and automating employee giving with a digital system like KindLink can bring significant benefits to an organisation. By using a digital platform, companies can simplify the donation process for employees, making it easier and more convenient for them to give to their chosen causes, and boosting participation in the scheme.

Using KindLink's platform, employees can set up automated payroll donations, track their charitable giving, and receive real-time updates on the impact of their donations. This transparency can help build trust and engagement between the company, employees and the chosen charities.

KindLink's platform also offers a range of tools to support HR and payroll teams, such as automating tax-receipts, reporting and analysis. This can save time and resources, freeing up HR and payroll teams to focus on other critical tasks, and making it easier and more feasible to introduce employee giving as a scheme if resources are stretched.

In addition to these practical benefits, using a digital platform like KindLink can enhance a company's reputation as a socially responsible and purpose-driven organisation. This can help attract and retain talent, boost employee morale and satisfaction, and positively impact the bottom line.

Overall, automating and streamlining employee giving with a digital system like KindLink can have a transformative impact on an organisation, from employees to HR or payroll teams and the wider community.

Workplace Giving And Employee Engagement 

Workplace giving can have a significant impact on employee engagement and employer branding. By providing employees with opportunities to support charitable causes, companies can demonstrate their commitment to social responsibility and strengthen their reputation as a purpose-driven organisation.

Through workplace giving, employees can feel a sense of pride and fulfilment knowing that they are making a positive impact on the community. This can lead to increased engagement and job satisfaction, as well as foster a sense of camaraderie and teamwork among colleagues.

Additionally, by promoting workplace giving as part of a wider CSR strategy, companies can attract and retain talent who share their values and mission. A strong employer brand can also enhance a company's reputation and help attract new customers and investors who are looking to do business with responsible and ethical organisations.

Overall, workplace giving can be a win-win for both employees and companies. By promoting a culture of giving and social responsibility, companies can enhance their employer brand, attract and retain top talent, and make a positive impact on the community.

How To Set Up Employee Giving

Setting up a successful payroll giving scheme requires careful planning and implementation. Here are some key steps to consider:

• Firstly, it is important to obtain funding for any gift matching or other initiatives that will be part of the scheme.

• Identify employees who are passionate about social responsibility and have the skills to help promote and manage the scheme. This could include HR, payroll, and marketing professionals who can collaborate to create a robust and engaging program.

• Plan your timeline and launch, taking into account key dates such as the start of a new fiscal year or other company events that could impact employee engagement.

• Set up your system, considering the employee experience and practicalities of setting up payroll deductions and tax receipts. A digital platform like KindLink can simplify this process and make it a more transparent “self service” experience for employees.

• Decide how to monitor and promote the system in the future. Regular communication and promotion can help ensure ongoing employee engagement and support for charitable causes.

Overall, setting up a successful payroll giving scheme requires a collaborative effort and a strategic approach. With the right planning and implementation, companies can create a culture of giving and social responsibility that benefits both employees and the wider community.

Employee Giving Statistics 

• 67% of Fortune 500 companies run matching gift programs, and this number has risen consistently over the past three years.

• Around $5 billion is raised through employee giving annually, and over half of that figure comes from employee matching gift programs.

• Stating that donations will be matched in fundraising appeals results in a 71% increase in the response rate and a 51% increase in the average donation amount.

• 84% of survey participants revealed they were more likely to donate if a match was offered.

• 80% of companies set matching gift maximums between $500 and $10,000 annually per employee, with an average cap of $3,728.

• 91% of companies match donations at a 1:1 ratio. 4% match at a lower rate (such as 5:1) and 5% match at a higher rate (such as 2:1 or 3:1.)

(Source)

Welcome To The Future Of Employee Giving 

Employee giving is a crucial component of any reputable corporate social responsibility (CSR) strategy. Not only does it provide companies with an opportunity to give back to the community, but it can also enhance employee engagement, attract top talent, and strengthen a company's brand reputation. 

As social responsibility becomes an increasingly important factor in employee decision-making, employee giving is expected to become a standard feature that many applicants will look for when considering a job opportunity.

At KindLink, we offer the best and most streamlined solution for workplace giving. Our digital platform makes it easy for employees to donate, track their charitable giving, and receive real-time updates on the impact of their donations. With our platform, companies can promote a culture of giving, enhance their brand reputation and make a positive impact on the community in the most efficient and effective manner.

Manage your Employee Giving schemes with ease: book your KindLink demo today.