According to a new study by the Charities Aid Foundation, only one out of four UK businesses give to charity. However, 63% younger workers (16-24 years old) say they will be more loyal to their employer if they donate to charity.
Over half of employees (54%) say that being employed by an employer who supports charities makes them feel proud to work there, and increases their loyalty (51%). CAF also found that 47% of employees said they were more willing to do extra for their employer when their employer supports charities.
This trend is more pronounced among employees of younger generations who are looking for work in a company that has a social purpose.
63 % of 16-24 year-olds say that their employer’s charitable donations have increased their pride as employees and loyalty to their organisation. Over half of those aged 25-34 agreed (57% and 54%, respectively). The percentage falls to slightly below half for 45-54 year olds (47% and 48%). Only a third (or so) of the over-55s surveyed believed there was a positive correlation.
According to CAF data, despite the fact that the next generation business leaders are more socially aware, most businesses (75%) do not donate anything to charity. This includes cash donations, in-kind contributions, or volunteer hours by employees.
CAF’s study looked at the specific question of whether companies donate their profits to charity.
Philippa Cornish is the Head of Corporate Clients for the Charities Aid Foundation. She said, “We see a growing trend towards responsible business and charitable giving must be considered as a key pillar in these strategies. Donating to charity is good for your business. Businesses can use this opportunity to show their commitment to the community and their employees.
Corporate giving is important to attract and retain the next generation of workers. Businesses should be aware that corporate giving is an important factor in deciding whether or not you want to work with someone.
The Skipton Group has designed a recent giving programme to help them live out their values, and to do good in areas important to the company and its members.
Michaela Wright is the Head of Sustainability for Skipton Group. She said, “We are tackling significant challenges related to housing and finances. We asked our colleagues and members to help us choose the charities we would support. This ensured that we were focusing on areas that mattered to them.
“Our charitable giving aims at helping our members and the wider society overcome barriers that prevent people from owning a home. It also helps them access financial advice and education and raises awareness to make our homes more energy-efficient and warmer.”
CAF’s tips to businesses that want to engage their employees in corporate giving
- Matching giving can be achieved by supporting colleagues’ fundraisers with company donations, or by matching regular employee giving via a payroll-giving programme.
- Make sure your employees are involved in the corporate giving strategy. For example, they can vote for the charities that the company supports.
- Regularly communicate with your employees about the charitable work that you are doing and how.
- Employee volunteer hours can be a part of corporate giving strategies to encourage employees’ efforts. You can also match their donations.
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