Employee Giving: Benefits, Campaign Ideas & Workplace Program Tips

What is Employee Giving?

Employee Giving is the practice of empowering employees to contribute to charitable causes through workplace programs. Simply put, employee giving is the donations made by a company and its employees to nonprofit organizations.

Employee giving is a cornerstone of corporate social responsibility (CSR), fostering a culture of purpose and engagement. These programs can include payroll deductions, matching gifts, and pledge campaigns which create opportunities for employees to make a meaningful impact on the organizations they care about.

Benefits of Employee Giving

Employee giving programs deliver measurable benefits for both employees and organizations. Here is why employee giving matters:

• Increased Retention

Companies with strong purpose-driven programs experience 31% lower turnover rates compared. By implementing stronger employee giving programs, companies can expect increased employee retention.

• Increased Employee Engagement

Only 31% of US employees in 2024 consider themselves to be engaged at work, down 2% from 2023. (Gallup) Employees who feel connected to their company’s social impact initiatives are more likely to advocate for the brand and stay engaged within their company.

• Enhanced Brand Reputation

Workplace giving programs raise about $5 billion annually in the United States, signaling strong corporate citizenship. 76% of companies believe CSR reduces brand reputation risk, and CSR now accounts for over 40% of a company’s reputation. Both employees and consumers are increasingly prioritizing purpose-driven corporations in their professional and personal decisions.

• Greater Organizational Success

Not only does employee giving positively affect the employees and their performance, but employee giving is directly tied to an increase in overall organizational success. Highly engaged teams show 21% greater profitability in their organization. (Gallup)

Types of Employee Giving Campaigns

• Payroll Giving

Payroll giving allows employees to donate directly from their paycheck, making contributions seamless and consistent. This method often yields the highest participation rates because of its convivence. Payroll giving alongside matching gifts saw the highest employee engagement rates, outperforming credit card and offline giving combined.

Land O’Lakes moved its annual giving campaign to include payroll giving and expanded nonprofit options. This shift increased participation gaining 28% new donors by making giving more convenient for employees.

• Matching Gift Programs

Matching gifts amplifies employee contributions by doubling or tripling donations. This approach demonstrates a company’s commitment to shared impact. Mentioning matching gifts in appeals can increase response rates by 71% and average donation amounts by 51%. Unfortunately, $4-$7 billion in matching funds go unclaimed annually, which presents a large opportunity for companies to promote their matching gift programs to their employees.

Portland General Electric leveraged a matching gift platform to promote a wildfire relief matching campaign, driving significant awareness and participation.

• Pledge Campaigns

Pledge campaigns encourage employees to commit donations over a set period of time, often tied to a specific cause or event. Pledge campaigns are likely to have higher donations from employees, especially when they focus on cause connection. Desert Financial Credit Union uses annual pledge campaigns to rally employees around specific causes.

Through various giving program options, including Pledge campaigns, Desert Financial Credit Union achieved a 91% engagement rate and committing over $500,000 through employee donations and company match.

5 Tips for Starting an Employee Giving Program

1. Secure Executive Sponsorship: Leadership buy-in ensures resources and visibility for your program

2. Offer Matching Gifts: 84% of donors say they’re more likely to give if a match if offered

3. Integrate Volunteering Opportunities: Combining giving and volunteering boosts engagement to 16%.

4. Leverage Technology: Tech-enabled platforms provide transparency and personalized experiences.

5. Communicate Impact: Share stories and metrics to keep employees motivated and connected to the cause.

Measuring its Success: 3 Important KPIs

1. Participation Rate: Think of this as your program’s heartbeat. Tracking how many employees join your giving initiatives shows who’s engaged and where you might need to spark more interest.

2. Average Donation Amount: This tells you how your program stacks up against industry benchmarks. If donations are lower than expected, consider adding matching gifts or themed campaigns to inspire bigger contributions.

3. Matching Gift Utilization: Matching gifts are like free money for impact, but only if employees use them! If your utilization rate is low, it’s a sign to improve communication or send reminders, so employees don’t leave extra impact on the table.