Workplace giving: A boon for charities without a big impact on donor chequebooks
November 19, 2001
by Nicole Zummach
Workplace giving offers benefits to both charitable organizations and
donors, yet it remains a largely untapped method of donating. Many Canadians
have heard of workplace charitable giving campaigns, such as those operated
by the United Way or private companies, and some people participate
in these programs. However, only a very small percentage of Canadian donors
take advantage of this means of donating, even though the programs are
simple to join, offer flexibility to the donor, and sometimes offer gift
matching by employers. Still, the programs that are in place are finding
success with this underused vehicle for charitable giving.
A valuable but underused means of donating
The most recent Canadian survey of donor practices, the 2000 National
Survey of Giving, Volunteering and Participating (NSGVP), reports
that of all solicitation methods used by charitable organizations, payroll
deduction accounts for only about 3% of the total number of donations
made in Canada. In terms of the total dollar value, payroll deductions
made up approximately 6% of total donations in 2000. Considering the low
figures, charities may wonder whether workplace giving is a worthwhile
method of raising funds. However, 6% of $4.9 billion (the amount donated
by individuals to charitable organizations in 2000) still means that $294
million went to the nonprofit sector through payroll/workplace giving
initiatives.
The survey also found that, although most donors do not make decisions
about their donations in advance, those who do plan ahead tend to give
more, actually accounting for 39% of the total dollar value of all donations.
Since employees who enroll in payroll donation programs are effectively
planning their donations in advance, statistically they are also likely
to donate more than if they weren’t enrolled. And because of the
ease and simplicity of these programs, organizations usually find that
retention of participants from year to year is quite good.
Networking is the key to success
Of all workplace giving programs operating in Canada, the most well known
is run by the United Way. Each fall during their annual fundraising campaign,
volunteers in communities across the country urge employees at participating
companies to pledge their support by signing up for payroll deductions
during the upcoming year. At the United Way/Centraide Ottawa, this
year’s campaign has already raised $16.8 million of its $19.3 million
goal and Vice President Louis De Melo says that workplace giving
has generated more than 80% of that amount. "Overall we have 1,800
companies participating," says De Melo. In addition, 80-100 companies
also match their employees’ donations each year, making payroll deductions
a very successful venture for the United Way of Ottawa.
De Melo attributes this success to the organization’s 14,000 volunteers.
"Volunteers have networks in the community and can act as a reference
to companies," he explains. This year 50 new companies in Ottawa
joined the payroll deduction program. Hard work by the United Way teams
helps too. De Melo says that throughout the year the United Way researches
new companies in the area. "We identify companies that have an employee
base of at least 25 and have been in business for three years and then
ask our volunteers to help in contacting and approaching these companies
through their networks."
The story is much the same at the United Way of the Lower Mainland
in BC. "We are always trying to source new companies," says
Heather Streiner, media and public relations coordinator, adding
that the best route in approaching them is through a personal connection
rather than a "cold call". Close to 60% of funds generated during
the year come from employee giving programs and Streiner reports that
this year’s participation rates are even higher than last year.
Corporate-run programs encourage giving and volunteering
While many companies join the United Way’s program, there are some
that choose to operate their own internal workplace giving programs, particularly
large corporations. In 2000, Royal Bank Financial Group invested
$26 million in the community, helping more than 3,200 charities and Stephen
Voisin, national donations manager, says their payroll deduction
program is huge. Employees can designate funds to any charity, though
he finds most funds go to the United Way. The company also promotes volunteerism
by allowing employees and retirees to earn grants for organizations at
which they volunteer. "We currently have 1,000 volunteers signed
up for the program," says Voisin. Forty hours of volunteer work earns
a $500 grant for the charity of choice.
BC Hydro also supports a wide range of charities and nonprofit
organizations through its successful Employees' Community Service Fund
(HYDRECS). At present 41% of the company’s employees participate
in the giving program, which has helped more than 900 BC charities ranging
from small grassroots groups to large organizations. The HYDRECS committee,
consisting of 19 representatives from across the province, chooses several
special projects to support each year but employees also have the option
of designating their payroll deductions to any registered charity in Canada.
New ways for employees to make a difference
Now with the growing popularity of online giving, workplace giving will
soon be even easier and more accessible. The United Way is currently running
a pilot project, UnitedWay@Work, in several cities across Canada.
The new program allows employees of participating companies to donate
funds online through a secured Internet site. CanadaHelps.org,
an online donations portal, is also working to make online giving easier.
Early next year they will be launching an upgraded site with enhanced
tracking capabilities for corporate partners. Companies will have the
ability to learn the statistics of charitable giving within their organization.
With large workplace giving programs already operating successfully throughout
Canada, smaller groups may wonder where they fit into the picture. Other
than corporate-run programs, most payroll giving is done through the United
Way, making it difficult for smaller organizations to take advantage of
this type of donation program. Fran McDougall, national executive
director of the Make a Wish Foundation, points out that in most
cases people who donate through payroll deductions can designate those
funds to go to the charity of their choice. She suggests smaller charities
could still take advantage of payroll deduction programs indirectly by
raising awareness and encouraging individuals to exercise their options
and designate to a particular charity.
