Advancement Associates

Articles & White Papers

01/11/2007
Corporate giving models

Outlined below are four models for corporate giving. Each represents a unique corporate perspective and consequent implications for fundraisers.


1. The productivity model: giving to outside agencies contributes in some way to a corporations productivity.

  • Philanthropy is intended to help the corporation increase profits, most often by lowering costs.
  • Giving usually helps market company products, results in increased employee motivation and improves the corporate image.
  • Nonprofits must prove how giving will directly affect the corporations bottom line.

2. The ethical or altruistic model: giving fulfills a moral and humane obligation.


  • Corporate leaders feel obligated to support societal needs and rely on giving program officers to identify those needs for the corporation.
  • Giving addresses major community needs and usually involves employees in community efforts.
  • Nonprofits must appeal to the preferences of corporate leaders as individuals and community citizens.

3. The political model: giving aligns the corporation with societal priorities externally and responds to individuals political priorities internally.

External:

  • Corporations use philanthropy to build relationships to protect corporate power and limit government.
  • A corporate giving program serves as a liaison to allies in the community.
  • Types of giving in this model include projects that substitute for government initiative, efforts that build closer relationships between corporations and nonprofits, and programs that portray corporations as good public citizens (environmental or arts projects, for example).
    Nonprofits must 1) cultivate long-term relationships with corporate leaders, 2) give corporations credit for community benefits and 3) favor projects with important public sector benefits.

Internal:

  • The corporate giving officer must build allies internally, proving the worth of his/her department
  • Types of giving in this model include sponsorships, cause-related marketing, employee volunteerism, education and social service programs.
  • Nonprofits must 1) build relationships with various departments, 2) stress their relevance, 3) design projects to address those internal needs and 4) document how their initiatives will increase departmental effectiveness.

The stakeholder model: giving affirms the wishes of stockholders, employees, customers, suppliers, community, government regulators and other key stakeholders.

  • Types of giving in this model include employee benefit or volunteerism programs, community environment or education projects and projects to help consumers of corporate products.
  • Nonprofits must 1) identify key stakeholder groups and their interests, 2) demonstrate how projects improve corporate relations with specific stakeholder groups and 3) position grant seekers as community stakeholders championed by corporate giving programs.