We’re heading into the holiday season, or what I like to call the giving season, with a recession looming on the horizon. Families are feeling the pinch. Companies are increasingly uneasy about the economic outlook. And some organizations may be considering pausing or scaling back corporate giving either to save money or demonstrate to their employees that they’re fiscally responsible.
As your company weighs the pros and cons of making social investments for the remainder of the year, it’s worth considering what your organization might be giving up by opting out of giving back.
Corporate purpose initiatives benefit employees, communities, and businesses
It’s clear that both employees and consumers expect companies to step up in times of crisis and act as a force for good—to lead with corporate purpose.
Many organizations have delivered high levels of giving in support of those affected by recent crises, including the war in Ukraine, floods in Pakistan, hurricanes on the East Coast, and hot-button issues like women’s rights in both the U.S. and Iran.
Now, in the face of an approaching recession, it’s more important than ever for your organization to serve as a source of ongoing support and hope in a time of need—and Giving Tuesday is the perfect opportunity to double down.
The only day on the calendar dedicated to global goodness, Giving Tuesday follows Black Friday and Cyber Monday as the antidote to holiday consumerism. The event reminds us that we’re in a season to do good for others, both in our local communities and around the world.
Giving Tuesday is especially resonant this year as rising inflation prevents nonprofits’ budgets—and the personal finances of those they serve—from stretching as far as they have in past seasons. But despite current economic hardship, history tells us that people become more generous in times of crisis. Americans gave more during the Great Recession of 2007 to 2009 even as their own economic situations declined.
The same trend held true during the pandemic: Giving Tuesday donations grew an astounding 25% in 2020, and swelled another 9% in 2021. And corporate giving accounted for a significant portion of that figure. For example, last year on Giving Tuesday, the CarMax Foundation enabled CarMax’s 25,000-plus employees to each donate $25 corporate dollars to a nonprofit of their choice, positioning the company to give an estimated $650,000.
But let’s set aside the idea that giving during a recession is simply the right thing to do. There’s a business case for it, too. Research from my company, Benevity, a corporate giving software provider, shows that newer employees who donate or volunteer through company programs are 52% less likely to leave the organization. Partnering with colleagues and company leaders to positively impact others can provide employees with a sense of purpose and community, which contributes to improved loyalty and retention.
How your organization can step up all year
As you consider the actions your organization will take this giving season, it’s important to make it as easy as possible for everyone to participate. Corporate purpose initiatives should be simple, inclusive, and voluntary, and leverage corporate giving budgets to generate the greatest social and business return on investment.
Looking for ideas about how to make the most of Giving Tuesday this year? Here are several things your organization can do to give back this holiday season:
- Match donations. Increase donations to causes your employees support by matching, doubling or tripling their gifts.
- Offer donation “gift cards.” In lieu of the standard company swag holiday gift (because no one needs another travel mug), give each employee charitable dollars they can donate to the cause of their choice.
- Reward volunteering. Make a monetary donation for every hour an employee volunteers with a nonprofit.
- Promote acts of kindness. These are actions that support individuals in need, such as organizing a fundraiser for a local family that’s struggling, participating in a charity run, or shoveling an elderly neighbor’s sidewalk.
- Learn together. Encourage pro-social learning such as watching documentaries about climate change or social justice followed by a group discussion.
- Do pro-bono work. Does your company have expertise that can benefit others? Look for longer-term opportunities for employees to donate their professional knowledge.
During times of crisis, any action, whether small or big, can make a difference—for both the givers and the receivers. Giving Tuesday is a perfect moment for businesses to give back while creating genuine cultural moments that cultivate a powerful source of connection during difficult times. And when you empower your employees to participate in ways that allow them to support the causes that matter most to them, you reap the benefits of a more unified, productive and loyal workforce.
Sona Khosla is the chief impact officer at Benevity.