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Cutting Back on Charitable Donations – a No-brainer?

Corporate giving needs to be sustainable. It needs to become an integral part of the business strategy. Treating the Social Sector like disposable window dressing is lazy and irresponsible. Get in, or get out.

Corporate giving needs to be sustainable. It needs to become an integral part of the business strategy. Treating the Social Sector like disposable window dressing is lazy and irresponsible. Get in, or get out.

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Our little boat has hit some rough seas. The once balmy, blue sky has turned slate grey. A strong breeze is now a torrid gale, and waves claw at the hull, intent on dragging our bobbing boat to the bottom.

The Financial Crises is upon us, and we are in dire straits.

What to do? Lighten the ship, of course. Search for everything that is not completely necessary to stay afloat and navigate out of this storm. It will be offered up as sacrifice to the storm gods. If its not nailed down – pitch it overboard.

When corporations easily jettison their charitable and volunteer programs, you know they were never ‘necessary’. When companies keep them, even strengthen them, you know they are essential; key components of the corporate strategy.

Shelly Banjo of the Wall Street Journal helps us separate the window dressers from the strategic thinkers.

Next Benefit to Face the Ax: Matching Gifts
Companies Are Now Targeting Programs That Encourage Their Employees to Donate
By SHELLY BANJO

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Hit hard by the recession, many companies have trimmed contributions to employees’ 401(k) plans, suspended bonuses and cut back on health-care benefits. Now, a growing number are also taking the ax to their charitable matching gifts and volunteer programs.

Such programs, in which companies match employee contributions — or donate funds based on the number of hours they volunteer — have been popular for decades with nonprofit groups, employees and firms themselves, who use it as a recruiting tool and to burnish their image, as well as benefit from tax deductions.

But over the past year, more than a dozen large U.S. companies, from auto makers to computer-services firms, have shut the doors on their matching programs or significantly reduced the matching ratio, say from $3 or $2 per every dollar donated by an employee to $1 or less. Other changes include lowering matching limits or excluding retirees or part-time employees from participating.

Read the full article here.

For those interested in a sustainable and responsible approach to corporate volunteering and charitable programs follow this link.

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About the author

At Realized Worth, we help companies connect with their communities. We do this through corporate volunteering and social media.

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