Why More Nonprofits Are Paying Attention to Workplace Philanthropy Donors

Workplace philanthropy is one of the most valuable forms of support nonprofits can get. Also known as workplace giving, workplace philanthropy is the practice of giving through an employer-sponsored program, often as a recurring payroll deduction. This type of philanthropy is growing at twice the rate of individual giving, and accounts for $5 billion each year. It facilitates consistent support from individual donors, with the added benefit of a corporate match in many cases.

Despite workplace philanthropy’s advantages, it comes with challenges for nonprofits, especially for database professionals and development officers. Tracking donors who give through third-party workplace giving platforms (like Benevity, YourCause, Bonterra (CyberGrants), and others) is more difficult than tracking gifts made through traditional sources like online giving forms or direct mail campaigns. Without complete workplace philanthropy data, tailoring outreach and stewarding loyal donors becomes difficult. In this blog, we talk through the nuances of workplace philanthropy and show how it can be a lynchpin for future development success.

Why Workplace Donors Are Valuable for Nonprofits

They’re unsolicited

Many workplace donors contribute in response to encouragement from their employer, rather than in response to a nonprofit’s outreach. This means that a workplace donor is already familiar with and aligned with the mission of a nonprofit enough to donate to it—they don’t need to be convinced to support.

They’re loyal

Workplace philanthropy platforms and workplace-sponsored programs are designed to encourage donations—especially recurring gifts. Because of programs like payroll deduction donations or monthly philanthropic stipends, workplace donors are far more likely to be frequent donors.

Workplace donors are far more likely to be recurring donors

They’re excellent major, principal, and planned gift prospects

The two most important indications of whether a donor is a major gift prospect are (1) affinity with an organization and (2) capacity to give. Workplace donors are often recurring donors, which shows affinity, and they are steadily employed, which is a starting point for assessing major giving capacity. As employees grow in their careers, major gift potential increases. If a major gift is not possible for a workplace donor, years of steady support are a great indicator of a planned gift, also known as a bequest.

They might count for double the support

When polled, 91% of companies with a workplace philanthropy program offer some form of matching donation. By securing workplace donors, nonprofits can also secure a matching gift from their employer and double the impact.

91% of companies with a workplace philanthropy program offer some form of matching donation

They’re a gateway to corporate gifts

Workplace philanthropy programs are designed to encourage giving at all levels of a company. In addition to making matched gifts, companies will often make their own charitable contributions at the direction of employees. By building goodwill with your workplace donors, your organization can begin a conversation with their employer about additional support.

Why Workplace Philanthropy Data is Difficult to Gather

One of the biggest challenges that nonprofits face with workplace philanthropy data is the sheer number of data sources and files they receive. Each employer has its own method and timing for sending workplace giving data to nonprofits—usually in the form of a disbursement file from a platform like Benevity or YourCause. The differences in formatting and types of data included in workplace giving files make it a challenge to import into nonprofit CRMs, including Raiser’s Edge NXT and Salesforce NPSP (Nonprofit Success Pack).

Tying workplace gifts to the correct constituent record can also be a difficult task for nonprofit data professionals. Identifying the right donor record, especially for a donor with a common name, is time consuming and involves manual checking to prevent duplicates.

These challenges, combined with the time-consuming nature of data imports, lead to shortcuts in data gathering. Understandably, many database administrators will opt to collect less data in the interest of completing imports faster. This can look like crediting all individual donors’ gifts to their employer, or to a constituent like “Benevity,” which acts as a signal for workplace philanthropy donations.

When Data Gaps Lead to Missed Stewardship Opportunities

Data gaps can lead to lapses in donor stewardship and communication. The reason is simple: your organization can’t steward your donors if you don’t know who they are. When workplace giving disbursement files come to your organization and a time-strapped database professional can’t easily get that donor information into your CRM, it will be difficult (read: impossible) to send an acknowledgement thanking the donor for their workplace gift. Un-thanked donors are less likely to give again. Considering that acquiring a new donor costs five times as much as retaining a donor, stewardship is well worth the effort.

Acquiring a new donor costs five times as much as retaining a donor

The stewardship issues don’t end there. Incomplete donor data leads to unreliable reporting. Without complete workplace giving data, missing soft credit or pledge payment information will show up as errors in gift receipts, year-end giving statements, and other crucial donor communications—eroding donor trust over time. Not a good look!

Data Integration: The Answer to Missing Workplace Philanthropy Data

Luckily, there are solutions for getting more workplace philanthropy data into nonprofit CRMs without hiring additional staff or overhauling your tech stack. Because of the value that workplace donors bring to an organization, savvy nonprofits are making data integration a priority to get a more accurate picture of workplace philanthropy.

A data integration solution lifts the burden of complicated workplace philanthropy imports in a number of ways. First, it saves time for nonprofit data professionals by automating imports into a CRM. Second, it reduces the errors caused by manual data entry and record cleanup, ensuring consistently and accuracy with each import. And finally, an integration solution frees up time for more mission-critical work. Instead of spending hours editing spreadsheets or adjusting donor records to include their workplace philanthropy, your organization can spend more time developing relationships with these donors and their employers to lock in giving for years to come. Read how the Fisher House Foundation used Omatic Cloud as their integration solution for improving the quality of workplace philanthropy data in Salesforce NPSP.

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Workplace philanthropy is the fundraising opportunity nonprofits can no longer afford to overlook. By stewarding workplace donors, your organization can build its pipeline of unsolicited, loyal donors—and open the door to major gifts, planned gifts, and corporate-level support. But the only way to make this stewardship possible is to strengthen the workplace philanthropy data in your CRM. Don’t leave donor dollars on the table—automate workplace philanthropy imports today!