4 Ways Small Nonprofits Can Leverage Corporate Philanthropy

In 2023, total giving to nonprofits declined by 2.1% when adjusted for inflation. While this might not seem a cause for concern, small nonprofits need every donation they can get, meaning these organizations need to get creative with their fundraising efforts to ensure they generate enough revenue.

One such donation avenue small nonprofits should take advantage of is corporate philanthropy. As Aly Sterling Philanthropy explains, “Corporate philanthropy refers to the programs and efforts that businesses undertake to improve the welfare of others. The term generally refers to charitable donations made to and partnerships formed with nonprofits and other community organizations.”

Many small nonprofits may neglect the power of corporate philanthropy, thinking their organizations aren’t large enough to partner with sizable businesses. However, there are steps your team can take to tap into powerful corporate giving opportunities. Learn how to maximize this revenue stream with the tips in this guide.

1. Promote matching gift opportunities.

Matching gifts are donations companies make to nonprofits their employees support, effectively doubling the donation revenue organizations can receive. For instance, a company might match their employee’s $50 gift with an additional $50 donation, resulting in $100 for your nonprofit. However, 78% of donors are unaware they’re eligible for these programs, leading to billions of dollars in unclaimed matching gift funds each year.

Tap into this opportunity by promoting matching gifts to donors and helping them get involved. 360MatchPro’s matching gift marketing guide recommends taking these steps:

• Provide social proof. Show donors the impact of matching gifts by highlighting how many donors have already requested corporate matches and the resulting funds raised. Share examples of what this extra revenue has allowed your nonprofit to achieve.
• Create a communication cadence. Use automation to follow up with donors after they contribute and encourage them to check their matching gift eligibility. Matching gift software can facilitate this process and urge eligible donors to submit matching gift requests.
• Leverage multiple media forms. The more strategies you use to promote matching gifts, the better your chance of reaching supporters with this vital information. Leverage a mix of videos, statistics, images, graphics and eCards to share the power of matching gifts and encourage donors to submit requests.

In these communications, emphasize that matching gifts don’t require donors to contribute any further funds and are an easy way to increase their support for your organization. With a better understanding of how easy participation is, donors can help you make matching gifts a stronghold within your fundraising approach.

2. Inform supporters about volunteer grants.

Volunteer grants are very similar to matching gift programs, except instead of matching donations, companies financially compensate nonprofits for their employees’ volunteer time.

Perhaps you already have a solid group of supporters willing to help run your daily operations. After all, many small nonprofits rely on dedicated volunteers to supplement a limited staff and budget. Or, maybe you’re trying to attract new volunteers to your organization’s work. Either way, promoting volunteer grants can incentivize volunteers to participate and help you secure more funding for your cause.

Inform both of these groups about the power of volunteer grants by:

• Mentioning volunteer grants in volunteer thank-you messages. Whether they help with event planning, answering phones, organizing files or other key operations, your volunteers should know how much you appreciate them. In these thank-you messages, explain that their assistance can go even further when they take advantage of their employers’ volunteer grant programs and prompt them to research their eligibility.
• Including volunteer grant information in your recruitment materials. Learning that volunteers can contribute their time and boost your fundraising totals simultaneously may prompt potential supporters to get involved. Highlight all the ways these individuals can make a difference via volunteerism (including volunteer grants!) to persuade them to sign up.

Different companies have different policies regarding the eligibility and size of their volunteer grants. Some may pay an hourly wage, while others choose to offer a lump sum once volunteers cross a minimum hour threshold. Encourage volunteers to research their employers’ programs to determine the participation requirements.

3. Leverage your network to find corporate sponsors.

Lean on your nonprofit’s community to identify and partner with corporate sponsors. While you may not have as extensive a network as larger organizations, you can still call upon your donors, members, volunteers, staff and board members to help you form connections with like-minded businesses.

For example, let’s say several of your donors work for the same company. Encourage them to connect you with the appropriate staff member to discuss partnership opportunities. Some supporters may even own their own businesses and be willing to sponsor your organization.

Remember that you don’t necessarily have to partner with corporations to have a successful sponsorship experience. In fact, small nonprofits are often better off engaging with local businesses that share the same community and want to work together to make a difference within the surrounding area.

Before embarking on any sponsorship conversations, make sure to solidify your strategic plan. Having clear, concrete goals for the future will help you communicate your mission to potential sponsors and ensure your values align.

4. Create an in-kind donation policy.

Some businesses may be willing to support your nonprofit but lack the budget to do so. By collecting in-kind donations—contributions of goods or services—you can open up another non-dues, non-monetary revenue stream that encourages companies to contribute.

For instance, a local law firm may donate in-kind legal services, allowing them to do good in the community while empowering your small nonprofit to allocate resources you may have spent on these services to other areas of your organization.

To solicit these gifts, start by creating an in-kind donation policy that outlines the parameters for gift acceptance. Your policy should include the following elements:

• The types of gifts your organization can and can’t accept
• The circumstances under which you’ll accept different types of gifts
• The process of recording each type of gift

This type of policy helps businesses (and individuals) determine whether you’ll accept the items they’re planning to contribute ahead of time, preventing your organization from receiving unuseful resources or hazardous materials.

Once you’ve developed a gift acceptance policy, create an in-kind donation page on your website that features these guidelines and lists the items you’d like to collect. Update this page regularly to reflect your current needs, and set up collection sites where people can drop off physical items.

Don’t let your organization’s size stop you from pursuing corporate philanthropy opportunities that allow you to generate significantly more revenue. Little by little, you can use these funds to invest in the future of your nonprofit and scale up your operations as you go.