I read a great piece on Inside Philanthropy (insidephilanthropy.com) regarding trends and issues facing the field. For starters, it put philanthropy in perspective: Coca-Cola spends almost as much on advertising annually as the Gates Foundation, the world's largest, donates. This helps put expectations into perspective about what private giving can achieve. The good news, as shown in my last blog, is that philanthropy is on the rise…driven by “hard-charging givers with big ideas,” traditional sources becoming more aggressive, corporations are becoming more engaged and savvy, and new services helping to connect the dots (like CauseCast.com). The timing is important due to the new administration tightening fiscal screws on solving society’s challenges. Thankfully more “givers” are stepping up to the plate as the government is pulling back.
The article cited a wide variety of trends and issues, including the following. Rather than get into the details of each, I suggest you check out the article for more details.
- 2017 Another Record Year of Giving…Before a Falloff Looms
- Funders Fight Trump - Philanthropy Comes Under Attack
- New Donors Mobilize
- Impact Investing Grows
- Tech Philanthropy Keeps Exploding
- Women Donors Move Further to the Front
- Defenders of Reason and Civility Step Up
- White Rural America Finally Gets Attention
- New Climate Mega-Donors Emerge
- Immigration Giving Surges
- Health Funders Stop Heading Upstream…And Fight to Save Obamacare
- Campus Gifts Keep Getting Bigger…But Donors Worry More About the Plight of Students
- Basic Science Research Draws Reinforcements
There are a variety of initiatives business leaders can take to grow private sector efforts to give back. In my last blog I shared some examples, such as charitable donation matching, Team Volunteer Grants and the like. Initiatives like cause work, philanthropy and volunteerism cannot simply be viewed as steps a company “can take” – due to the significant impact socially responsible behaviors have on Millennial employment and purchasing decisions, cause work initiatives have become a “must take.” Cause work leads to greater employee engagement, satisfaction, retention, and performance. This leads to higher levels of service delivery, which drives resident retention. And all of this leads to an enhanced reputation, which drives the recruitment of new employees and residents.
- Employee satisfaction is double when the company supports and promotes team cause work (Global HR Research)
- 45%-63% of Millennial job decisions are impacted by a company’s cause work(Forbes)
- 67% of Millennials buy from companies supporting good causes (Edelman Goodpurpose Study)
We preach about the concept Everyone Can Win® – that when a company is committed to supporting all of its stakeholders and giving back to the communities they do business within – the company wins due to the significant NOI impact of increased employee retention, resident retention and reputation. Our Q1 2018 Financial Impact Study shows that our clients achieve significantly lower employee and resident turnover rates. Comparing client turnover with industry-reported rates and using standard turnover costs, there is a dramatic bottom line impact (assumes a 5,000 unit portfolio). Below validates that when you take care of everyone else, they’ll take care of you – yes, Everyone Can Win®.
- NOI impact: Over $1.9 million/year
- Asset value impact (6 cap): Over $32 million
Companies often share how much they want to do more, but don’t know where to start. ManagInc provides guidance on how to take better care of those who impact a client’s performance. As it relates to cause work, this includes how to formulate charitable giving and volunteerism programs. Our CSR Score and CSR Cause Choice service’s perception studies identify causes your employees, suppliers and residents want to support. CSR Score and CSR Cause Choice helps companies build sound corporate social responsibility program addressed to all stakeholders – with the ROI being improved employee engagement and retention, resident retention, supplier loyalty, and reputations. Contact us to find out how more about this quick, easy and cost-effective program that will boost your bottom line.
Inside Philanthropy. Philanthropy Forecast, 2017: Trends and Issues to Watch