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When most development professionals think of fundraising sources, they primarily list individual donors and grants. But there's another revenue source--corporate giving! Though it only adds up to a small fraction of fundraising efforts, receiving corporate gifts can also bring other benefits!

According to Giving USA and other sources, corporate giving is on the rise, motivated by a mix of altruism and a desire to attract employees that value working for socially responsible companies. Nonprofits can undoubtedly take advantage of this trend to increase funding and even create great partnerships.

If corporate giving is a new fundraising strategy for you (or you'd like to hone your existing strategy), we've gathered some great wisdom and insight from fundraising experts about how to approach corporate giving!

• Corporate giving: the basics
• 5 types of corporate giving
• 4 ways for nonprofits to leverage corporate giving

The Basics of Corporate Giving

Corporate giving programs allow businesses of all shapes and sizes to invest in charities and causes they value. Corporate social responsibility has become a significant topic of discussion in recent years. As a result, many people want to work for companies that value and enact positive change.

Additionally, many consumers want to choose products or services from socially responsible companies that are demonstrating that they're investing in the greater good. That means corporate giving isn't just a "nice after-thought" for many businesses; it's becoming a way for companies to distinguish themselves and win customers and top-notch employees. This can be a really positive culture shift for many nonprofits willing to add corporate giving to their fundraising strategy.

5 Popular Types of Corporate Giving

There are actually several types of corporate giving strategies or programs to consider. Here are the top five types you should be aware of:

1) Employee volunteer grants

This type of corporate giving is often called "Dollars for Doers" grants. With these grants, a company gives money to nonprofits where its employees volunteer regularly. Your nonprofit could benefit from valuable volunteers AND significant revenue with these programs. Still, they often go overlooked due to a lack of awareness by both the potential volunteers and the nonprofits.

About 40% of the Fortune 500 companies offer some kind of employee volunteer grant program. While the grant amounts vary widely, the average range is $8-$15 per volunteer hour.

2) Employee matching gifts

Corporate matching gifts are an easy way to boost revenue through donors who are already supporting your nonprofit! These programs work to match donations made by employees to eligible charities (usually up to a certain percentage or dollar amount).

Businesses of all shapes and sizes have some kind of matching gift program because it's an easy, structured way to support their community and invest in programs and nonprofits that their employees value.

Unfortunately, many donors are unaware of their employer's corporate matching gift policies and programs, so they go unused! But with a little sleuthing and gathering the right data from your supporters, you can help them learn how to take advantage of these matching funds and boost their donations to your cause! Everyone wins!

3) Corporate sponsorships

This is probably one of the most popular or well-known types of corporate giving. Many nonprofits take advantage of this strategy of inviting companies to make donations in order to be associated with particular events, opportunities, or causes.

Many companies like to take advantage of corporate sponsorship opportunities because it's a form of advertising. It boosts their brand recognition, reputation, and general presence in the community while supporting a good cause. So, businesses do like to get something of value in return for corporate sponsorships.

4) Community Grants

Many large companies either have a foundation or a department that handles their charitable giving programs. These often include community grants where the company seeks to invest in and support the needs of communities where their employees and customers live and work.

In most cases, these grants have strict rules to ensure the money stays in communities where the company has a physical presence. Usually, the programs work very similarly to traditional nonprofit grants. Eligible organizations can go through an application process to receive funds for a specific need or program.

5) Non-cash gifts or gifts-in-kind

Many businesses offer donations of needed items and services instead of money to eligible nonprofits. This can include anything from computers and furniture to counseling services or school supplies! Many nonprofits take advantage of these non-cash contributions by partnering with companies that have some kind of expertise you need.

For example, suppose your nonprofit provides healthy lunches to food-insecure kids. In that case, you might partner with a local farmer to receive some of the produce that's perfectly good to eat but might not get sold at the local market.

4 Strategic Ways Nonprofits Can Take Advantage of Corporate Giving

There are so many ways to take advantage of corporate giving opportunities and many factors to consider. But here are four top tips and insights that will help you land some tremendous corporate donations!

1) Do your research and choose a compatible business

Businesses tend to donate to nonprofits that have overlapping values or missions--and rightly so! Genuine, lasting partnerships come about when the organization and corporation come together around a shared vision or goal.

So, do your research! Learn about a company's history, achievements, goals, and future plans to see where your organization might overlap!

A technology company to increase the number of minority or female engineers on their team might be really excited to invest in a nonprofit that offers after-school STEM programs for under-served kids!

Or you might take a bit more "negative" approach here. For example, a company with a recent hazardous waste spill or negative impact on the environment might be keen to partner with an organization that cleans and protects the environment.

It's also essential to find corporate partners that have compatible products and services. Suppose you're trying to help food-insecure kids access healthy, nutritious meals. In that case, you might not want to pursue a partnership with a candy or soft drink company. Instead, look for corporate partners with products or services you wish to promote and use!

2) Start with local corporate giving opportunities

Remember, the goal of fundraising is more than just money; it's about building lasting relationships and partnerships. Focusing on local corporate giving opportunities increases your opportunities to build genuine relationships and invest in the local community together.

Businesses are far more likely to invest in local causes and nonprofits. One study found that between 2000 and 2011, 60% of all corporate donations over $1 million were awarded to nonprofits in the donor's immediate area. So staying local increases your chances of receiving those funds and benefits.

Additionally, building relationships with local businesses creates opportunities for employees to volunteer, which can help forge deeper connections between your organization and the company.

3) Be prepared to demonstrate the value of corporate partnership

Even though the value of corporate social responsibility is on the rise, you'll still need to be prepared to demonstrate how a partnership with your nonprofit will benefit the companies you approach.

The truth is businesses want corporate giving to be a win-win situation. What impact will the company be able to make in the community by partnering with your organization? What kind of publicity will they enjoy, and will it potentially lead to more customers?

Before you approach a business about corporate giving opportunities, prepare to demonstrate how such generosity might lead to increased sales, greater customer loyalty, better employee satisfaction, or a bigger network of potential customers.

Showing up prepared with this information demonstrates that you're interested in the company's wellbeing, not just your own, and proves that you truly want to develop a symbiotic relationship.

4) Make it easier for companies to administer corporate giving campaigns

While many businesses genuinely want to be generous, time-crunched managers and leaders often struggle to actually make it happen. This is especially true for small to mid-sized companies.

Take advantage of this reality by making it easier for companies to partner with your nonprofit! With tools like custom donation pages, you can create campaign pages ahead of time and handle all the little details for the company. Some nonprofits even create social media and email templates, video testimonials, and other resources for corporate partners.

Many businesses will really appreciate partnering with a nonprofit that helps them achieve their philanthropy goals instead of just accepting a check.

While there are many other strategies and tactics to help you get the most out of corporate giving programs, these four tips can help you build strong partnerships with businesses and help everyone thrive in the process.

Here are three more resources to help you build a strong fundraising plan.

• Grant Application Basics: A Guide for Nonprofits: Finding and applying for grants doesn't need to be a horrible or complicated process, especially if you're prepared and applying for the right grants. This blog will help demystify and simplify the application process.
• Ladder of Engagement: Nonprofit Fundraising Strategies: The nonprofit ladder of engagement is a powerful tool to hook your "casual follower" and move them toward being your most loyal donor. If you don't already have a strategic ladder of engagement for your organization, this blog will help you develop one. And, if you already have a strategy in place, this blog just might help you make adjustments and improvements.
• Top Donor Incentives to Maximize Fundraising Results: Many well-known nonprofits use donor incentives to help boost their fundraising. Yet, it's a fairly controversial strategy that seems to have mixed results. Head over to this blog to learn more about what kinds of donor incentives tend to work and how to incorporate them into your fundraising strategy effectively.