Companies are expected to have workplace philanthropy now more than ever -- and nonprofits need our support to survive. Here's why...
4 minute read
Company culture is at a turning point. The community between employees and teams that holds company culture together has fractured during COVID-19, and the values that underpin company culture are being (rightfully) reevaluated across the board. Most companies feel the importance of this moment, and are acting accordingly to support the causes and communities their people care about most. The surge in workplace philanthropy that has resulted from the actions of these companies is great for the companies themselves, but also great for so many nonprofits currently hurting.
When we think of organizations struggling during the COVID-19 pandemic, small, local businesses come to mind, not nonprofits. Nonprofits are instead aligned with first responders - providing lifelines for struggling citizens during these crucial times. But nonprofits need rescuing too.
Nonprofits are dying off because donations are decreasing. According to a recent study by Johns Hopkins, over 1.6 million nonprofit workers lost their jobs from March to May due to the pandemic. “Nonprofits generated the third largest payroll income of any U.S. industry in 2017,” but tens of thousands of nonprofits are predicted to close due to the pandemic.
Now is the time to take action as a company for 2 main reasons: (1) companies are being held accountable for workplace philanthropy and (2) nonprofits desperately need support.
1. Workplace Philanthropy Accountability
With recent events (COVID-19 and Black Lives Matter), companies are now held to a higher standard when it comes to workplace philanthropy. Stakeholders, partners, investors, employees, and consumers are now holding companies accountable for the positive impact they make on social issues and causes.
The accountability is not new, but its rightfully higher and shows no signs of decreasing anytime soon. These events are demanding investors to ensure workplace philanthropy is considered, connected, and valued. This is the perfect opportunity to transition into a more authentic philanthropic strategy as it will help you build a genuine company culture, brand, and public following.
A socially-minded company is the type of company employees want to work for and investors want to invest in.
2. Nonprofits Need Support
Most nonprofits took immediate action to help their local community through the life-changing events of the COVID-19 pandemic and the Black Lives Matter movement. These front-line organizations are receiving millions of donation dollars. For example, NAACP Legal Defense and Education Fund received $15 million from the Open Society Foundation, $1 million from Blake Lively and Ryan Reynolds, and thousands of other donations to fight for racial justice. These donations are not only generous, but show amazing donor advocacy.
But other nonprofits, who are not aligned with the front-line organizations, are experiencing a reduction in revenue. According to the Nonprofit Quarterly, after the last recession in 2008, arts, culture, and humanities nonprofits suffered a prolonged storm of revenue hits. That same storm is now recurring due to our current pandemic. The COVID-19 pandemic demands social distancing, which in turn causes nonprofits like museums, performance centers, etc. to struggle and need rescuing like the last recession.
While nonprofits who advocate for recent events, such as COVID-19 and BLM, are thriving, the majority of nonprofits are closing. Overall, the nonprofit industry’s revenue is down, which is causing employees to be furloughed or laid off and services are being reduced, which is resulting in closures.
Now is the time to build, or enhance, a giving strategy for your company’s culture, brand, and following. Fortify your company’s culture and values, which will in turn help those nonprofits in need. Answer the call with Percent Pledge.