America's Charities, Inc

Snapshot 2014

Rising Tide of Expectations Corporate Giving, Employee Engagement and Impact Advisory Group America’s Charities would like to thank the Advisory Group for providing insight, guidance and support for Snapshot 2014. However, opinions expressed in Snapshot 2014 are solely those of America’s Charities.

Dottie Schindlinger Perla Ni Executive Vice President CEO BoardEffect GreatNonproﬁts

Barbara Harman Debra Snider President and Editor Vice President Operations Catalogue for Philanthropy: GuideStar Greater Washington Kendall Joyner Joseph Mettimano Director, Programs and Practice Vice President, Marketing & Independent Sector Campaign Engagement Global Impact Richard Neustedter Partner Cynthia M. Adams Nonproﬁt Financial Specialists President and CEO GrantStation.com

Acknowledgements Special thanks to the following individuals and companies for their involvement and assistance in the research and publication of Snapshot 2014.

Stephen K. Greenhalgh Design: Senior Advisor Levine & Associates America’s Charities Washington DC

Kudzai Mukumbi, Ph.D. Consultant Net Impact Projects for Good

Rising Tide of Expectations Corporate Giving, Employee Engagement and Impact Table of Contents

Advisory Group i

Snapshot 2014: The Big Picture 4

Rising Tide of Corporate and Individual Expectations 6

Nonproﬁts and Companies Live in Parallel Universes 11

Engagement is the New Standard 14

Greatest Challenges in Building and 18 Sustaining Corporate-Nonproﬁt Relationships

Summary 20

About America's Charities 21

Glossary of Terms

Workplace Giving Overhead Myth Federation An employer-sponsored program The common misconception that A 501(c)(3) charitable organization giving employees an easy and the percentage of a charity’s that represents multiple charities efficient way to make tax-deductible expenses that go to administrative and acts on their behalf to gain donations to charities, usually via and fundraising costs—commonly access to and raise funds in public payroll contributions. referred to as “overhead”—is, on and private sector workplace giving its own, an appropriate metric to campaigns. Unrestricted Funds evaluate when assessing a char- Donations made available for a ity’s worthiness and efficiency. Throughout this report we use nonprofit that are not designated (from “The Overhead Myth, A the terms nonprofit, nonprofits, for a particular use. These funds GuideStar Initiative to Improve nonprofit organizations and charities give charities flexibility to use them Donor Choice”). interchangeably. For the purposes where they are needed most, such of Snapshot, they refer to the same as building their capacity to fulfill thing—a legally recognized 501(c)(3), their mission. mission driven organization.

2 Snapshot 2014 “ As we focus on the intersection of corporate giving, employee engagement and charitable impact, the rising tide of expectations is here. Corporations, employee donors and the public expect charities to demonstrate greater accountability, transparency, and evidence that their work is making a signiﬁcant, measurable impact. Charities that can evolve in this age of the democratization of charitable information will be in the best position to thrive and succeed.”

—Steve Delﬁn President and CEO, America's Charities

Rising Tide of Expectations 3 Snapshot 2014: The Big Picture

“ We want to make sure we are executing our workplace giving strategies at a really high level.” —Survey Participant

The impact of employee giving in February 2013 of Snapshot 2013: About Snapshot 2014: campaigns on charitable organiza- Trends and Strategies to Engage • Nearly 240 nonprofit organizations tions and the people and communi- Employees in Greater Giving, a compre- provided insights into their practices ties they serve cannot be understated. hensive look at companies, their views of and corporate partnerships by partic- Workplace giving campaigns generate employee engagement, and trends and ipating in an online survey that is the over $4 billion annually—much of which best practices. basis for this report. is unrestricted, sustainable support that enables charitable organizations serve Snapshot 2013 provided insights into • Seventy two percent of respondents communities throughout the nation. how the digital culture is transforming have revenue under $3 million while the intersection of workplace giving the remaining 28% are charities with These organizations meet vital needs and employee engagement as well revenue greater than $3 million. as they deliver programs and services as changing expectations of a new ranging from arts and culture to educa- workforce. Interestingly, a subsequent • The respondents represent a broad tion and mentoring, to health awareness dialogue surfaced the question of range of more than 20 different and care, to food security and housing, whether nonprofits are experiencing types of charities. The top cate- to environment and sustainability, to this same transformation. gories include children and youth, civic and human rights, and more. health, education and training, At the same time, the “overhead myth” human services, arts and culture, Snapshot 2014: Rising Tide of discussion (see page 6) was gaining international, and environmental and Expectations—Corporate Giving, traction with its central focus on moving conservation. Employee Engagement and Impact, beyond administrative and fundraising surveyed charitable organizations costs as a measure of a charity’s perfor- The Snapshot series, published by to explore key trends shaping corpo- mance. America’s Charities decided America’s Charities, examines issues rate-nonprofit partnerships today and to explore these issues and contribute and trends at the intersection of corpo- the challenges and opportunities they to the ongoing dialogue around corporate giving, employee engagement and face to maximize engagement in the rate giving, employee engagement, and charitable impact. future. The report follows the release charitable performance and impact.

4 Snapshot 2014 Snapshot 2014 Highlights

Charities Face a Rising Tide of Expectations from Corporate and 1 Employee Donors There is a growing expectation held by companies and employees that charitable organizations must demonstrate greater accountability, transparency, and impact with measurable results.

Digital Culture and a Networked World Are Transforming the Way Charitable 2 Organizations Operate As in the corporate world and society at large, technology, digital culture and interconnectedness are transforming how nonproﬁt organizations interact and engage with companies, employees and other stakeholders.

Engagement is the New Standard

Workplace giving is changing to embrace the broader aspects of employee engagement and provide greater opportunities for 3 employees to learn about, interact, and connect with charities. Nonproﬁt organizations are responding to this shift by changing the way they operate to better address the new expectations of corporate, institutional and individual donors.

Developing and Maintaining Corporate Partnerships is Challenging for 4 Nonprofit Organizations Nonprofit organizations recognize the value and importance of engaging in strong partnerships with their corporate and institutional donors but indicate they face significant challenges in sustaining and capitalizing on these relationships.

Rising Tide of Expectations 5 Rising Tide of Corporate and Individual Expectations

In July 2013, the leaders of three of the sophisticated in their philanthropic deci- “The accelerating pace of country’s primary sources of charitable sion making, with a growing emphasis change is transforming information–GuideStar, Charity Navigator on effectiveness, accountability and and BBB Wise Giving Alliance–penned impact. With these changing expecta- charities, as they must an open letter to America’s donors chal- tions, charitable organizations are pres- meet the demands of rising lenging the “overhead ratio” as the primary sured to become more transparent and expectations. Corporate giving indicator of nonprofit performance. results-driven. and employee engagement Instead, they encouraged donors and other stakeholders “to pay attention to Almost 61% of survey nonprofit respon- are driving forces in this other factors of nonprofit performance: dents believe their corporate partners social impact equation.” transparency, governance, leadership and individual donors expect greater —Lynne D. Filderman and results.” (See “Letter to Donors of accountability around impact and Vice President & Chief Marketing Officer America” at www.overheadmyth.com.) results measurement. America's Charities Snapshot 2014 explored how charities Almost 68% of the survey respondents are experiencing these new and revealed that the digital culture is driving changing expectations for greater the demand to demonstrate impact, accountability and transparency, partic- and 68% also believe that operating ularly from their corporate partners. in a digital culture requires them to be more transparent with donors and Nonprofits Respond to stakeholders. Demands for Greater Accountability In fact, more and more nonprofit organizations are changing their practices Individual, corporate and institutional to demonstrate their commitment to donors are becoming increasingly address these rising expectations. This

61% 68% 68%

Nonproﬁt respondents who believe Survey respondents who Survey respondents who believe their corporate partners and revealed that the digital that operating in a digital individual donors expect greater culture is driving the demand culture requires them to be accountability regarding impact to demonstrate impact more transparent with donors and results measurement and stakeholders

6 Snapshot 2014 Three Communication Strategy Changes Made by Nonproﬁts Over the Past Three Years

92% 89% 66% Use social media to Increase delivery of stories Feature more data communicate with key and narratives with emphasis and statistics in their constituencies on results and outcomes annual reports

is increasingly reflected in their communications and marketing strategies. “ The best way to As noted above, the nonprofit organi- communicate impact is zations responding to this survey iden- to show measurable tified several strategy changes they have made in the past three years. impacts along with personal success stories.” Nonprofits Identify What —Survey Participant They Believe is Important to Their Supporters The survey asked charities to identify which factors they believe are important to both individual and corporate donors to communicate impact and outcomes, demonstrate transparency and ensure adherence to high standards of governance.

Rising Tide of Expectations 7 1. Impact and Outcomes Important Factors to In the survey, charities were asked to rate the importance of six factors Communicate Impact in communicating the impact and outcomes of their work: and Outcomes • Mission, programs and services of the organization • Transparency in all aspects of their work • Strong leadership 80% • Number of people served Mission, programs and services • Good governance • Low administrative/overhead costs 70% Transparency in all aspects Eighty percent of respondents said the best way to communicate about of their work their organization’s impact and outcomes is by focusing on their mission, 69% programs and services. See chart at upper right. Strong leadership Only 54% said low administrative costs are very important in communi- 68% cating impact and outcomes. This ﬁnding suggests that more charities Number of people served are recognizing that low administrative costs may not be the primary indicator of performance. In fact, many thought leaders suggest using 68% “low overhead” as a primary performance indicator actually starves Good governance charities of the necessary capacity required to have impact and demonstrate outcomes. (See “The Nonproﬁt Starvation Cycle”, Stanford Social 54% Innovation Review, Fall 2009.) Low administrative costs

2. Transparency Respondents were asked to rate the importance of the following Important Factors to generally recognized characteristics of openness and transparency Show Transparency with stakeholders:

• Reporting on the stewardship of the organization’s 67% mission, programs and services Reporting on stewardship of • Delivering financial and other key information on the the organization’s mission, organization’s website programs and services • Posting tax returns and other financial information for easy review by constituents 53% • Detailing staff and volunteer activities designed Delivering financial and other to achieve the mission key information on their website • Disclosing salary information 52% The single most important factor identified by two-thirds of respondents Posting tax returns and other financial information is reporting on stewardship of their organization’s mission, programs for easy review and services. Only 21% think it is very important to disclose salary information. See chart at lower right. 48% Detailing staff and volunteer While 70% said it is very important to be transparent in all aspects of activities designed to achieve their work with corporate donors, these factors of transparency were the mission not consistently rated as very important factors. There is a disconnect between the importance of transparency as a concept and the impor- 21% tance of specific factors that comprise it. Disclosing salary information

8 Snapshot 2014 3. Governance and High Standards Important Elements Charities were asked to identify the elements of good governance. of Good Governance Survey respondents believe these are the ﬁve most important elements to their corporate and institutional donors:

• Accountability and transparency 82% • Board review/approval of the annual IRS Form 990 Accountability and transparency • Independent audit committee 71% • Formal rules to guide the governance of Board review and approval the organization of the annual IRS Form 990 • Board approved policy mandates to govern the organization 69% Independent audit committee Eighty-two percent of respondents believe the most importance element of good governance is accountability and transparency. 66% However, they do not view these other generally accepted practices Formal rules to guide the as equally important. See chart at right. governance of the organization

This suggests another disconnect. While survey participants under- 63% stand and value good governance, they demonstrate a limited under- Board approved policy mandates standing of all its components. to govern the organization

See page 10 for insights and implications of these rising expectations. 63% Conﬂict of interest policies 57% Written code of ethics 51% “ Most donors are looking for information about Publicly accessible bylaws impact, use of funds, legitimacy and mission.” —Survey Participant 50% Whistleblower protection policy 48% Transparency of board meetings 47% Informal rules to guide the governance of the organization

Rising Tide of Expectations 9 “ We are giving more focus to individual stories vs. general statements about actions.” —Survey Participant

Growth of Charity Validators 1. What is the organization trying to • Charities and their boards should accomplish? engage in a conversation about the The number of “validators” and rating “overhead myth” to gain greater groups has grown in recent years, 2. What are the strategies to make understanding of the importance of which provide corporate, foundation this happen? this concept. and individual donors with a means to review charities. Donors are turning 3. What are the organization’s • Charities should turn to sector to these validators for information and capabilities for doing this? experts for assistance in developing independent assessment of charities’ a plan to leverage charity validators. effectiveness. 4. How will the organization know if they are making progress? • To meet rising expectations, char- Notable among these groups are ities must go beyond communi- 5. What has and hasn’t the BBB Wise Giving Alliance (BBB cating their mission or reporting organization accomplished so far? WGA); Charity Navigator; GuideStar; on outcomes. Charities must go Charting Impact (a collaboration between Only 17% of survey respondents have beyond the concepts to more fully GuideStar, BBB WGA and Independent completed their Charting Impact profile. demonstrate them. Sector); and GreatNonprofits. Over 35% have been reviewed on • Charities might consider tapping Only 6% of survey respondents have GreatNonprofits, a community-sourced into corporate pro-bono talent to met BBB WGA’s Charity Accountability charity feedback site (similar to Yelp help create better performance Standards. Note that BBB WGA only or Trip Advisor). Fifty-five percent of metrics and the capacity to manage reviews national organizations. respondents have received the highest to outcomes. rating of five stars. About 30% of survey respondents • Companies can help educate have been rated by Charity Navigator, a Insights employees on the “overhead myth” national service that evaluates charities by encouraging them to look beyond in two areas of performance – finan- • Based on survey responses, it is overhead and administrative costs as cial health and accountability & trans- clear that the dialogue with donors an indicator of performance. parency. Of those, 50% received the to look beyond a single performance highest rating of four stars. indicator is underway. But there is a • Corporate and institutional donors need to continue this dialogue with can look beyond overhead as a Charting Impact provides a common all stakeholders. A common under- primary measure of charitable format for charities to articulate what standing of these factors—good performance by providing financial they are trying to accomplish and governance, transparency, account- and pro-bono support to charities how they are positioned to fulfill their ability and results—is essential to to enhance their capacity and infra- mission. Charities respond to five ques- move beyond overhead and to meet structure to better demonstrate tions when they complete their Charting the rising tide. effectiveness. Impact profile. The five questions are:

10 Snapshot 2014 Nonproﬁts and Companies Live in Parallel Universes

Based on the findings from both driving changes and transforming the Snapshot 2013 and 2014, America’s way nonprofit organizations conduct “ We are definitely changing Charities has found several parallels their business. our communications. between what is happening in both We now use data in our More than 90% of the nonprofit orga- corporate America and in the nonprofit blogs, press releases and sector. Technology is changing both nizations responding to the survey said sectors by democratizing information, their use of technology has changed effectiveness reports.” growing social networks, and facilitating in the last three years allowing them —Survey Participant greater engagement. to deliver information quicker, feature more data and communicate with key The challenge moving forward in this constituencies. See chart below. environment will be how charities differ- entiate themselves as exceptional or Over 80% said technology is changing high-performing given the abundance the way they do business, and more of data and information. than 80% expect technology to continue to change in the next 18 months. This places new demands on Technology’s Impact is charities to keep pace with these rapid Accelerating changes. Similar to the private sector, technology and the digital culture are

Technology is Changing, and Changing Faster

90% 36 mos 80% Report that their use of Expect technology to technology has changed in change in next 18 months. last 36 months 18 mos

Rising Tide of Expectations 11 Social Media’s Influence munications strategies to include tell- “Social tech allows is Growing ing their stories through narratives, in individuals to communicate words, pictures and videos with a new Social media platforms, combined with with their networks to emphasis on results and outcomes. As the expanding use of mobile devices, noted in the chart below left, a majority re-tell the stories of causes create new ways for charities to engage of survey respondents also believe a they care about.” with companies and employees inside digital culture requires more transpar- —Survey Participant and outside the workplace. Charities ency and a focus on results and impact. are aggressively developing new strategies and adopting new technology tools to effectively reach their stakeholders Easy Access to Readily wherever they are. Available Information The immediacy and accessibility of In the survey, more than 90% of the massive amounts of information is trans- nonprofit organizations say they utilize forming the nonprofit landscape, and social media to deliver their messages charities are responding to this oppor- and communicate with stakeholders. tunity. Ninety-three percent of respon- And 90% have changed their com- dents revealed they make information more readily available than ever before to potential donors. This democratization of information will continue to accelerate. Charity Movement Toward More Effective Engagement and Nonprofits and Companies Greater Transparency Live in Parallel Universes America’s Charities Snapshot 2013 found that employers have significantly changed the way they use technology 94% internally within their employee engagement programs. Fifty-four percent Use digital media to make information more readily available of employers surveyed reporting that their use of technology has changed by incorporating more social media 93% tools to increase engagement, providing Make information more readily available more information to employees, and connecting employees with reputable nonprofit organizations.

90% Actually, data suggests nonproﬁts are Have changed communications strategies ahead of employers in utilizing social with new emphasis on results and outcomes media platforms to interact and engage with donors. While Snapshot 2013 90% found a growing number of companies are incorporating more social media Use social media to deliver messages and tools into their internal giving programs, communicate with stakeholders many employers are actually restricted in the use of these tools due to legal 85% restriction or reputation management. Agree that digital culture allows them to reach Charities don’t face these same restric- a broader group of volunteers and donors tions and can more fully leverage these social platforms.

12 Snapshot 2014 Even so, the transformation in the nonproﬁt sector, mirrors many of the Leveraging Technology to Engage changes taking place in the corporate world. Both are responding to the need to be relationship-and engagement- What Companies Say What Nonproﬁts Say focused. Snapshot 2013 Snapshot 2014

While the survey questions in Snapshot 2013 and Snapshot 2014 were not 85% 85% identical, the data allows us to surface Use technology to provide Said digital culture allows similar issues and draw inferences for information to employees them to reach a broader group of volunteers and donors companies and charities. The chart at right highlights the similarities between companies and charities as found in the two Snapshot reports. 50% 94% Use technology to connect Indicate they make employees with reputable information more readily Insights nonprofit organizations available using digital media • Nonprofit organizations can often be more flexible in using social media than companies. 50% 94% Use social media internally Of young professionals expect • Keeping up with technology and as part of workplace the nonprofit to use social media social networks requires charities giving program to interact and engage with them to dedicate staff and resources to capitalize on changes in technology and social platforms.

• With limited direct access to employees, charities must find Moving to Relationship and creative ways to deliver messages Engagement-Driven Activities and sustain relationships with employee donors outside the walls of the workplace. Companies Nonproﬁts Snapshot 2013 Snapshot 2014 • Companies can help support charities by facilitating greater information sharing through the use of their 50% 85% internal peer-to-peer networks and communication channels. Use social media

• Companies can leverage their social networks to feature their signature programs and employee engagement 88% 94% initiatives. Interact and engage • Technology, in and of itself, is a tool. It is not the answer to increasing involvement and engagement. Leadership, vision and human inter- 50% 80% action drive successful employee Use technology to connect engagement programs.

Rising Tide of Expectations 13 Engagement is the New Standard

Snapshot 2013 surveyed nearly 100 Nonprofits Value the New In Snapshot 2014, charities ranked the companies who collectively employ Model of Engagement elements of engagement programs that more than 1.4 million employees add the most value to them. raising more than $230 million. The Charities were asked to identify the study revealed the most dramatic components of workplace giving most In general, nonprofit organizations value shift in workplace giving over the past valuable to them. See chart at right. those activities they feel will generate decade, as companies move to more more donations, including a corporate In Snapshot 2013, companies were fully engage employees and maximize match, year-round giving and financial also asked to identify what they the giving experience inside and outside grants in recognition of employees’ expected would comprise future the walls of the workplace. volunteer service. They also place high employee engagement initiatives value on having employees promote According to the report, companies are relating to philanthropy. See chart their favorite charities to their peers. looking more strategically at employee below. See chart on page 15. engagement and connecting it to broader social responsibility strategies and objectives. What Employees What Charities Companies are expected to do more to engage their employees and support Value and Expect Value and Expect the causes employees care about. The Snapshot 2013 Snapshot 2014 paradigm shift, outlined in Snapshot 2013, is a sea change for workplace 1. Payroll contributions 1. Matching employee giving. A new model is emerging that contributions moves away from giving as a trans- 2. Matching employee action, to giving as part of a larger contributions 2. Employees able to engagement profile. promote their favorite 3. Choice charity to their peers Nonprofit organizations are responding 4. Goals 3. Financial incentives for to this shift by providing greater oppor- 5. Incentives employee volunteer service tunities for employees to learn about, interact and engage. 6. Year-round giving 4. Year-round giving 5. Payroll contributions The questions in Snapshot 2013 and 7. Individual giving accounts Snapshot 2014 were not identical, but 8. Employees able to 6. Choice we found alignment between company promote their favorite 7. Employees serving as expectations of future giving programs charity to their peers board members and the elements of corporate philanthropy that bring most value to the 8. Company-supported charities. volunteer teams

14 Snapshot 2014 Companies Increasingly Look to Nonprofit Charities Are Aligning With Organizations to Engage New Model of Engagement with Their Employees Nearly 50% of the charities responding to the survey said the number of Companies Nonprofits requests to engage with employees Snapshot 2013 Snapshot 2014 has increased within the last three years. Additionally, they see a growing number of young professionals engage with nonprofit organizations. $

However, employee engagement does Year-Round Giving not come without its challenges for 50% 77% Companies are nonprofit organizations. Corporations moving to year-round want to respond to employee requests engagement; charities for company-sponsored volunteer proj- also value this option ects and often turn to their nonprofit partners to provide such engagement opportunities. These requests can be difficult for charities to respond to given their limited staff and resources. Additionally, many charities don’t have scalable volunteer projects readily avail- Volunteer Opportunities 68% 50% able. Often, though, charities respond Employees expect their employers to support because they don’t want to turn away volunteerism; charities see a corporate request. This creates a an increase in requests misalignment of resources and effort on both sides of the equation.

Payroll Contributions 80% 66% This option is key for “ Some companies want to companies and valued provide their employees by charities with opportunities to volunteer and make a difference in the community. But sometimes $=$ this doesn’t meet our needs or the timing is off. Matching Gifts 70% 80% We do it because it’s a Employers and charities value matching gifts chance to build a long- term, helpful relationship with the company.” —Survey Participant

Rising Tide of Expectations 15 Charities Place a High Value on Corporate Giving and Grants “Workplace giving is A corporate grant is one of the most highly valued aspects of a corporate phil- shifting from an emphasis anthropic program, according to 90% of respondents. Even with the economic on procedure and duty challenges in recent years, more than 56% of the respondents indicated that (“I gave at the office”) to real the level of financial support from companies and their employees has remained storytelling and impact.” steady or increased in the last three years. Also, more than 51% of the survey participants place significant value on the grants they receive from companies —Survey Participant in support of employee-volunteers.

Corporate Matching Gift Programs are Important Over 40% of the nonproﬁt organizations responding to this survey said revenue from corporate matching gift programs is increasing. Almost 80% of the repsonding nonproﬁt organizations said a matching gift drives larger donations and is a highly valued source of revenue.

Corporate Snapshot 2013 Nonproﬁt Snapshot 2014

Year-Round Engagement Year-Round Engagement More companies were providing employees Nonproﬁt organizations place signiﬁcant with an opportunity to give to charity value in employees being able to contribute throughout the year. year round.

Volunteer Opportunities Volunteer Opportunities Employees want their employers to promote Nonproﬁts noted an increase in the number and sponsor volunteer opportunities. of requests to engage with employees.

Payroll Contributions Payroll Contributions A majority of companies expect payroll Charities ﬁnd value in receiving contributions contributions to remain an important option from employees through payroll deduction. for their employees.

Matching Gifts Matching Gifts Corporate matching gifts are highly Employees value a corporate match of valued by nonproﬁts. their ﬁnancial contributions.

16 Snapshot 2014 Workplace Giving and engagement programs as opportunities Employee Engagement to promote their mission, programs and “ Revenue from workplace Strategies are Growth Areas services, and identify and recruit new giving used to be one volunteers. See chart below. line item in our revenue. Snapshot 2013 found that 80% of Now we realize we must employers surveyed said employee Nearly 50% of nonproﬁt respondents workplace giving payroll giving have an active workplace giving compo- be strategic and take programs would remain an anchor of nent as part of their overall fundraising advantage of these their employee philanthropic support. strategy. Most of the responding orga- opportunities.” looked at how charities nizations work through a federation to Snapshot 2014 —Survey Participant view this opportunity. participate in workplace giving.

About 65% of the charity respondents Of those respondents with a work- agreed that payroll contributions add place giving strategy, almost 60% value to their organization. However, reported that workplace revenue is payroll is viewed as somewhat less remaining steady or increasing. Less valued than other revenue generating than 24% said this source of revenue components of a giving program. is decreasing.

More than 49% of respondents iden- Insights tified workplace giving as a growth • Nonprofits should give serious strategy for their organization. They consideration to developing a work- see workplace giving and employee place giving strategy since contributions made through payroll tend to be two to four times higher than gifts How Charities View made through other methods. Workplace Giving • Charities can stand out from the crowd in workplace giving by offering full engagement opportunities. Identify workplace giving as a growth • Demonstrating transparency, 49% strategy accountability effectiveness and impact helps position the charity with companies and employees.

Have an active • Companies can use matching gifts workplace and grants to stimulate greater 50% giving component employee participation. • Companies should find ways to empower employees to be internal Say workplace champions for the causes they care revenue is about by investing in technology tools 60% remaining steady allowing them to communicate and or increasing promote their favorite charities to their peers.

Rising Tide of Expectations 17 Greatest Challenges in Building and Sustaining Corporate- Nonproﬁt Relationships

“ The items identiﬁed in the survey are not really a challenge for us because they are just part of what we naturally do.” —Survey Participant

Finally, charities responding to the 2014 Snapshot 3. Communicating impact effectively to survey were asked to identify the three greatest corporate, institutional and individual challenges they face in generating unrestricted donors revenue (see chart on page 19): Nonprofit organizations need to change their 1. Operating with limited staff and communication strategies and tools in order to volunteers to focus on corporate accurately and transparently portray what they opportunities are accomplishing with those donated dollars and volunteer support. More than 80% of the nonprofit organizations responding to the survey said that they face Earlier in this report we noted that charities significant challenges in building strong corpo- are generally changing and adapting to the rate workplace giving strategies and partner- demands of information technologies and to ships because of limited staff and resources. digital social media platforms, but more than This is especially true for small and medium-size 80% of survey respondents said communi- nonprofits. cating effectively remains one of their greatest challenges. 2. Sustaining relationships as companies become more strategic Corporate-nonprofit partnerships can play a greater role in effectively addressing the needs Given the challenge in creating partnerships, it of our communities. The private sector can take comes as no surprise that, even when respon- a leading role in helping increase charities’ dents have strong relationships with companies, ability to perform more effectively and better they are challenged to sustain and capitalize on demonstrate outcomes and impact. The data them. Almost 50% of the survey respondents suggests charities are better positioned than in indicated that their organization has a strong the past to engage with corporate employees, relationship with its corporate and institutional but have ongoing resource challenges. At the partners, yet nearly 90% of those respondents same time, opportunities are greater than ever face significant challenges in sustaining ongoing to build sustainable relationships and engage- relationships with corporate and other funders. ment-driven activities.

18 Snapshot 2014 Insights • Charitable organizations need to Three Greatest Challenges to engage in relationships with corpo- Sustain Corporate Relationships rate and individual donors that will result in unrestricted funds to build capacity and deliver measurable Challenge #1 outcomes. Report that they have difﬁculty building strong • Strong corporate-nonprofit part- corporate partnerships and WPG strategies nerships can facilitate and achieve 80% with limited staff and resources mutual goals.

• Companies can take the lead in Challenge #2 creating stronger partnerships with charities that empower employees Report that a major challenge is sustaining ongoing relationships with corporate and to give their time, talent and money. 90% other funders • Companies can support charities by highlighting partnerships and communicating the impact of Challenge #3 such partnerships on the company, Report that communicating effectively about employees, the charity and the the impact of their work is also an obstacle community. 80%

“ Companies shouldn’t look at their work with nonproﬁts as transactional events but rather as building a relationship with a trusted ‘go to’ partner that is working to achieve mutual goals.” —Survey Participant

Rising Tide of Expectations 19 Summary

In summary, Snapshot 2014: Rising Tide of Expectations indicates nonprofit organizations have a very good under- “ Snapshot 2013 revealed standing of the need to demonstrate effectiveness and the most dramatic shift accountability. While most nonprofit organizations are in employee giving and responding to this changing environment, many are struggling with what it means and how to address it. Snapshot 2014 documents the continuing wave of At the same time, charities are evolving along with our digital change in employee culture. They are finding new ways to engage with young professionals and leverage social networks to communicate engagement from about their work and their impact. the perspective of the nonprofit organization.” As companies become strategically focused in ways that —Steve Greenhalgh align with impact and outcomes, the competition to access Senior Advisor corporate support is going to increase.

Charities that can expand upon this strategy and demonstrate good governance, excellent leadership, transparency and results will be better positioned for success with employers and employees.

As advocates for a fully engaged private sector workforce, America’s Charities encourages employers of all sizes to think more strategically and creatively about how to strengthen and transform their work with nonproﬁt organizations.

20 Snapshot 2014 America’s Charities is a multi-dimensional, mission-driven organization that connects public and private sector employers with charities to engage employees in greater giving.

Since 1980, America's Charities has been at the forefront Core Services of workplace giving's transformation—from paper pledges • Generating unrestricted, sustainable ﬁnancial support to digital platforms, from giving to engagement, from tradi- for charities through employee engagement programs tional fall campaigns to year-round opportunities inside and outside the walls of the workplace. • Providing services to help charities participate in federal, state and local government, university and private sector Our experience combined with an accountable and trans- workplace giving and engagement programs parent process has resulted in the distribution of more than $500 Million to ten thousand charities over the past • Distributing funds to charities efficiently with a thirty-four years. The generosity of public and private commitment to transparency and accountability sector employees continues to be a vital source of sustain- • Consulting with employers on strategies and able support for charities throughout the United States. solutions to achieve their philanthropic goals, catalyze greater engagement and produce meaningful Who We Serve and measurable impact

• Charities looking to expand their participation in work- Links place giving and employee engagement programs through membership in one of America's Charities’ www.charities.org four federations: America's Charities, Children First – www.linkedin.com/company/america’s-charities America’s Charities, Health First – America’s Charities, or Community First – America’s Charities of Greater www.facebook.com/AmericasCharitiesFederation Washington, D.C. www.twitter.com/AmerCharities • Employers seeking to launch or revitalize workplace giving programs and meet the challenges presented Snapshot: Trends and Strategies to Engage Employees by our digital culture to produce robust and meaningful in Greater Giving, 2013 employee engagement programs. www.charities.org/news/trends

• Individual donors exploring ways to connect with great Campaigns at the Crossroads: Changing Direction, 2006 causes and make a personal, social impact. www.charities.org/news/trends

Employee Workplace Campaigns: At the Crossroads, 2000 www.charities.org/news/trends 14150 Newbrook Dr. Suite 110 Chantilly, VA 20151 www.charities.org

April 2014