25th February 2021
Corporate Social Responsibility (CSR) is becoming an increasingly prominent issue for consumers, employees and businesses. A good CSR policy reflects a company’s values in a practical way- showing the public that they are genuine and feel a responsibility to make a positive impact with their resources. Corporate philanthropy is a great way to take a CSR policy from words to actions- but it has its upsides and downsides. There are a number of ways to go about corporate philanthropy, including: matching employee’s gifts, payroll giving, corporate sponsorships and community grants, to name a few. Read Prism the Gift Fund’s blog on ‘Types of Corporate Philanthropy’ to find out what options are available.
Not only does corporate philanthropy improve an organisation’s public image and reputation within the community, but it also serves to attract and retain the top talent. To find out everything you need to know about corporate philanthropy read a simple guide we prepared. Increasingly, younger generations feel that the value of a company does not only lie in its ability to make profit. Striving to do good and contribute to communities is becoming paramount in the eyes of the future workforce. Engaging employees in corporate philanthropy serves to deepen relationships, as people are united in working together towards a deeper purpose. It is this sense of purpose which evokes loyalty from employees, and subsequently, from consumers also. The practice of trying to understand what matters most to your employees also contributes towards a strong, healthy organisation, with a deeper understanding of one another’s personal values.
In practise corporate philanthropy can be complex and take up valuable company resources. An essential element of philanthropy lies in the decision making- who do we give to? This decision is difficult enough for individuals wanting to give- but when you need to consider the philanthropic preferences of hundreds of employees- the task becomes a lot bigger. If corporates can encourage their employees to become involved in the project the burden lessens, as everyone becomes invested in selecting a worthy and impactful cause. Often, corporates choose to give to local causes, as a way of giving back to the communities in which they operate. This can be a good way to narrow down causes when making a decision. To learn more about the benefits of corporate philanthropy, click here.
The rest of the challenge associated with corporate philanthropy lies in the administration. It is essential that any giving complies with the UK Charity Commission rules and HMRC. Unfortunately, the rules and regulations surrounding this often change and are increasingly more complex. This leaves corporates needing to invest time and resources to ensure the process is done correctly. Using an organisation such as Prism the Gift Fund to outsource the administration for giving, allows the company to focus on the important aspects- engaging employees and the community and selecting worthy causes to give grants to.
Running your corporate philanthropy with Prism the Gift Fund means we shoulder the responsibility for the grant making- this leaves firms free from any burdens of reputational risk and legal liability. Corporates can set up an ‘Own Name Foundation’ through Prism, essentially a White Labelled Foundation whilst still being able to select their beneficiaries or even setting up their own local community programmes. Prism the Gift Fund oversees the entire back office administration including reclaiming gift aid on employee donations, governance, compliance and due diligence on all giving and reporting.
Get in touch today for more information on how Prism can support your corporate philanthropy.