Corporate Philanthropy For Cash Donations

Corporate Philanthropy

Discuss about the Corporate Philanthropy for Cash Donations.

Corporate philanthropy is such actions of the corporations through which the donations and the resources are given in the charity to the organisations which are no profitable. It mainly consists of the cash donations and is also in other forms such as the use of the volunteer time of the company’s employee and also few facilities of the companies for the welfare of the others. Donations are mainly handled by the corporations directly or by the foundations which are developed by the corporation’s (Meadows, 2004). Corporate philanthropy includes the fundraising matches, community grand, and the volunteer team grants. The corporate philanthropy includes the two ways in which the organisations can donate are the volunteer grant programs and the matching gift programs.

Matching gift programs– is also known as the donating the money to the nonprofits.  Many programmes related to the charity are also organised, where in the organisation matches the contribution which is done by individuals to the organisation.

Volunteer grant programs: Such program is diverse from the matching gift program in a great way, as in such process the people will not directly help with the money to the non-profits organisations but will support the people who are will for such donation on the voluntary basis. In this program, the organisation will aid the non-profit organisation with the financial help where the workforce is agreeable to effort willingly regularly (Pribbenow, 2005). This programme works in two ways:

The employees who work voluntarily for the no- profits are paid on hourly basis  

Such standards are fixed by the company where if the employee works voluntarily for certain fixed hours then the company will support financially to the non-profit organisation. 

Many of the big and the well-established organisations are trying to apply such practices and policies which will be beneficial for the Corporate Philanthropy. Normally, the best practices and the policies will help you in a better understanding of its position in the company and in calculating the amount that is to be given in the form of the charity or donation. For the calculation of the charity, one can follow the following formula which is to multiply 1.2 times net income as per the tax of last year and to conclude the least amount of the cash budget for the next year’s donation (Ihl and Vossen, 2014). 

Here will discuss the company Sales force which is the worldwide online software company and is based in Australia. The other world big companies act as the inspiration and the mentor for promoting and encouraging the sales force for the corporate philanthropy. The foundation’s sales force was originated by the company 15 years before based on the simple principle to donate 1% of the company time, product, and equity for improving the communities which are under privilege and need the support all over the globe (Generosity Magazine, 2015).   Sales force and their foundation with the organisation works on the model known as the 1 -1-1 which also shares the donation with the other companies who also pledges to share its 1% (Salesforce.org, 2016). This concept was originated by the co-founder and the president Suzanne Debianca, who is also on the boards of the other councils. She aims to expand this message all over the globe and to inspire the other organisation to work for the cause of the corporate philanthropy in the managed way. In this segment, she receives a great positive response from Atlassian which is one of the technical companies of Australia. In the starting the, Dibianca studies about the present methodologies of philanthropic which  are practiced all over the globe, observe the shortcomings and developed such systems which helped in improving the final results.

Example of Corporate Philanthropy: Sales Force

The integrated philanthropy model of the Sales Force supports the Play works to get better the well-being and the health of the children in all the schools across the nation. Salesforce.org follows the simple idea of the; influences the people, resources and the technology to support the communities around the world in improving the conditions or for their betterment.  In this model, the Technology offers the discounted and the donated technologies to the non-profits organisation. Through us programmes the Higher Ed institutions and the non-profit corporate is given the access by the company to use the product of the Sales Force Company for expanding collectively. This programme includes the subscriptions of the 10 donations and also a great discount on further more subscriptions or on the services and the products (Salesforce.com, 2016).

Under this model, the employees also have the freedom to take the decision that for what cause and where the employee can volunteer. The organisation empowers the employees with the volunteer time of the seven days in one financial year, grant of almost $10,000to the best volunteers of the financial year donating for the non-profit organisation, an access to the team grants for sporting the volunteer activities of the employees (Salesforce.org, 2016).

The resources in the model also help the providing the grant or the donations to the non-profit organisation which is inspired by the communities, technologies, and the employees.

In one of the research it was concluded that under the existing practices of the model, it was cleared that three of the areas are there where improvements can be made by the people. These improvements are of the prime importance and are to be a pledge by the companies to share 1 % of the all the three people, products, and money for the growth of the underprivileged communities. 

Many of the scholars have researched that corporate philanthropy in a great way helps in the companies discriminatory responsibilities. They also tried to discover the relation between the philanthropy and the outcomes which are related to the organisation reputation and the financial profit. Ajzen’s theory of planned behaviour (TPB) gives the foundation which is theoretically based on the model of development which will help in the better understanding of the behaviours related to the corporate philanthropy (Frost and Stone, 2009).  

Philanthropy also works as the strategic movement which helps or supports the organisation in improving its strategic position. Sales Force from the founding of the organisation has contributed almost $128+ million grants or more, and around 1.6 million hours for servicing the community and provided the donations of products further 29,000 nonprofits and to the institutions of higher education (Miller, 2008).
Corporate philanthropy and the altruism market:

Philanthropic Model

Today there is the market of the philanthropic which is also known as a market for altruism here the non-profit organisations, government, and the profit organisations contend with each other for the best.  Corporation should treat in the philanthropy when there is an extra advantage over the non-profit corporations and the government (Henderson and Malani, n.d.). The government should also take into consideration certain points while setting tax policy and avoid discrimination between nonprofits and corporations that undertake good work.  

Conclusion

Philanthropy is used this day as the base refers advertising plus the building as well as the promoting of the position and the image of the organisation.  Yet another program like the cause-related sales and marketing where all of the corporate spending are deductible, the organisations do not get any kind of the added advantage for getting indulged in the philanthropy refer their comparison to the various business purposes. The corporations in the present times can use some effort of assisting the non-profit companies to carefully improve the context of the competition. Various companies have also started to use the context focus of the philanthropy which targets the social and the economic benefits. It can be the easiest and the most effective manner so as to improve the competitive market context (Campbell and Slack, 2007). Like, Providing money wise help to the University can be much far more safe and economical as compared to the in-house kind of the training thus as per the benefits from the philanthropy, these companies are even able to move hand in hand to the non-profit companies.

Charity can also help in improving the education and the training. One of the Production Company in Los Angeles in recent times skilled the cluster of individuals who will help them in their production company.  Here the Company targeted equally the economic and the social benefits. The social benefit incorporated the enhanced education system and better opportunities for employment for the inferior class and the economic benefit included the individuals especially skilled for such purpose. The initiatives of philanthropy also help in getting better the superiority of the life.  Salesforce.org is dedicated to back-up the Nonprofits and Higher-Ed Institutes for finding the most favourable solution related to their needs or requirements. The Goal of the company is to improve the efficiencies, programs, operations and streamline processes, and also to accelerate the overall impact on the organisation.

References

Campbell, D. and Slack, R. (2007). Corporate “Philanthropy Strategy” and “Strategic Philanthropy”: Some Insights From Voluntary Disclosures in Annual Reports. Business & Society, 47(2), pp.187-212.

Frost, L. and Stone, S. (2009). Community-Based Collaboration: A Philanthropic Model for Positive Social Change. Foundation Rev, 1(1), pp.55-68.

Generosity Magazine. (2015). Pledge 1%: Is it the revolution corporate philanthropy has been waiting for? – Generosity Magazine. [online] Available at: https://www.generositymag.com.au/pledge-1-is-it-the-revolution-corporate-philanthropy-has-been-waiting-for/ [Accessed 23 Sep. 2016].

Henderson, M. and Malani, A. (n.d.). Corporate Philanthropy and the Market for Altruism. SSRN Electronic Journal.

Ihl, C. and Vossen, A. (2014). Paying for Philantrophy? The Prosocial Boundaries of Monetary Incentives in Idea Co-creation. Academy of Management Proceedings, 2014(1), pp.15620-15620.

Meadows, C. (2004). Philanthropic choice and donor intent: Freedom, responsibility, and public interest. New Directions for Philanthropic Fundraising, 2004(45), pp.95-102.

Miller, J. (2008). The ongoing legitimacy project: corporate philanthropy as protective strategy.European Management Review, 5(3), pp.151-164.

Pribbenow, P. (2005). Public character: Philanthropic fundraising and the claims of accountability. New Directions for Philanthropic Fundraising, 2005(47), pp.13-27.

Salesforce.com. (2016). Integrated Corporate Philanthropy: the 1-1-1 Model- – Salesforce Australia. [online] Available at: https://www.salesforce.com/au/company/salesforceorg/ [Accessed 23 Sep. 2016].

Salesforce.org. (2016). Pledge 1% – Salesforce.org. [online] Available at: https://www.salesforce.org/pledge-1/ [Accessed 23 Sep. 2016].