Corporate Donations: The Art of Giving

In a world in which social responsibility and corporate commitment are increasingly intertwined, the topic of corporate donations offers an exciting interface with enormous potential. If your company hasn't arrived in the world of corporate giving yet or if you want to brush up on your strategies, then you've come to the right place. This article will introduce you to the various ways of corporate giving, from payroll giving to innovative approaches such as corporate giving from lets. In doing so, we also look at the respective advantages and disadvantages so that you can make well-founded decisions. Because it's not just about doing good, but also about how your company can benefit socially and tax-wise

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Payroll Giving

Here, employees can donate directly from their salary.

benefits: Easy implementation, tax benefits for employees and the company*

drawbacks: Requires a certain amount of administrative effort.
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Business matching

The company doubles the donations made by employees.

benefits: Increases employee engagement and doubles the impact of donation*

drawbacks: Can be expensive if many employees participate.

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Total corporate donations

Here, the company donates a sum directly to a selected organization.

benefits: Quick and immediate effect, tax benefits possible*

drawbacks: Little to little personal commitment on the part of employees.

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Fundraisers and events

Corporate events that aim to raise money for a good cause.

benefits: Improves team spirit and corporate culture and increases public perception of the company.

drawbacks: Requires planning and resources, fewer tax benefits compared to direct monetary donations.

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Equity Giving

Companies donate company shares to charitable organizations.

benefits: Long-term effect, significant tax advantages*

drawbacks: Complex in implementation, potential impact on corporate governance.

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Corporate Giving by lets

An innovative way for companies to organize and simplify fundraising. Companies make collected donations to our association and receive an entire donation receipt. The sum of the donation is then divided among the employees, who can decide where “their share” should be donated.

benefits: Low administrative effort, high individuality of donations, tax benefits

drawbacks: Builds on employee motivation, i.e. if the entire issue of corporate donations is not addressed, participation can vary depending on the corporate culture.

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Take a look Corporate Giving by lets But let's take a closer look.

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sources:

1. Charities Aid Foundation, “Payroll Giving — What are the Benefits?”
2. Double The Donation, “Matching Gift Basics”
3. IRS, “Corporate Giving and Tax Deductions”
4. Stanford Social Innovation Review, “Equity as a Form of Corporate Philanthropy”
5. Nonprofit Law Blog, “Corporate Giving Programs: Legal and Tax Implications”

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