In recent years, many organizations have placed a greater focus on giving back to their communities. Often connected to social causes such as education and employment, corporate giving is a vehicle for making a positive impact. However, simply doling out money doesn’t guarantee that any needs are being met or that a difference will be made. For corporate giving to be effective, it requires intention and commitment.

Amid the uptick in corporate giving, not all businesses give back in a way that’s truly meaningful for the community, nor in a way that reflects the missions and values of the organization. Subsequently, the potential of such partnerships is squandered. But with the right strategies in play, corporate giving can create lasting change. 

Start by aligning your goals

Above all else, alignment is the key component of successful corporate giving. Without it, efforts can easily become misguided, and resources wasted.

Alignment ultimately comes down to intentionality. Commonly, organizations can take part in the “peanut butter effect,” or spreading money across all sorts of causes without a focus. While it may seem admirable to give to as many causes as possible, businesses can make a greater difference when giving larger gifts to select causes — ones they truly believe in.

But how do corporations decide which causes to commit to? That’s where strategic pillars come in.

“Companies should strategically establish pillars of alignment for giving, and these pillars need to tie back to larger organizational CSR (Corporate Social Responsibility) goals and ESG (Environmental, Social, and Governance) strategies as the practical detailed perspective,” said Wintrust Vice President of Community Impact Susana Meza. “Pillars dictate where a company is aligned to giving. There could be an organization doing great work in the community, but that doesn’t always mean that it’s aligned with your core competencies or strategic pillars. Companies need to be discerning.”

When establishing strategic pillars, take the following considerations into account:

• Clearly define your company’s core mission and values
• Conduct a comprehensive assessment of existing initiatives
• Engage key stakeholders throughout the decision-making process
• Consider your corporation’s unique point-of-view and expertise

With pillars in place, gray areas are replaced with clarity. And when companies have this alignment, they can spend more time going deeper to understand funding models, competition, innovation, and other crucial partnership details.

Adhere to your strategies

To truly move the needle, setting strategic plans is just the starting point. Adhering to those plans long-term is what separates successful partnerships from those that fall flat.

“Adherence to strategic plans is a major issue in successful, effective corporate giving,” said Meza. “You have to check back in. You started off with a roadmap, analyses, Fishbone exercises, and the whole nine yards, but where are you at now? How is your staff reporting on that alignment?”

The earlier companies determine their process for adherence to their corporate giving strategy and plans defined with their partners, the more likely they’ll be successful in the long run. When developing an adherence process, the measures below serve as a good starting point:

• Establish a system for regular reporting and evaluation
• Set clear performance indicators
• Ensure that all stakeholders are aware of the objectives and progress
• Assign clear roles and responsibilities 

Keeping all parties honest and accountable, teams can stay on track to accomplish their most important goals and ensure giving makes a difference.

Assess benefits at the right time

Lifecycle maximization is a cornerstone of successful corporate giving. To truly understand the quality of an existing partnership and its ability to foster change, companies need to assess the entire lifecycle of the giving partnership to determine if or how benefits are being maximized.

“Businesses need to look at the whole ecosystem,” explained Meza. “They need to ask, ‘Were there jobs created? Were there services grown? Did you coach clients?’ Whether it’s policy-related or centered around business development or community service needs, greater understanding leads to greater partnerships.”

By adopting this comprehensive approach, companies can better assess progress and identify opportunities for growth. Evaluating the tangible results of the giving partnership helps the broader impact on the community become clearer. This process also takes the intangible aspects of a partnership into account, such as reputation and morale, for a more holistic assessment on progress, impact, and opportunity.

Cooperate with the community

For impactful corporate giving, it’s crucial to remember that at the end of the day, everyone in the community is on the same team. And as with any team, working together generates the greatest results.

“What we must do as practitioners is strengthen the ecosystem,” said Meza. “It’s not us versus them; it’s a community.”

Living and working in the same community can create a shared sense of purpose and responsibility. For companies, this means recognizing the interconnectedness of their actions and those of their potential or existing partners, and ultimately, how they can collectively address the specific challenges of their shared community. 

“For example, there are macro-level issues around jobs and public safety in our market,” said Meza. “Working together, you really start to understand the specific social and governance factors at work, and there’s more transparency to ask, ‘How can we all rally around this issue?’”

Embracing this spirit, corporate giving becomes more than just a transactional act of philanthropy — it becomes an opportunity for organizations to forge deep connections with the community and contribute to its overall well-being. 

Engage in meaningful conversation

Even as more modern approaches take center stage, there are some tried-and-true methods that will always resonate.

The power of conversation in corporate giving cannot be understated. Through genuine connection, companies can learn much more about the cause and community than they can through virtual materials or plain presentations.

“There’s so much that can be accomplished by just having a conversation,” said Meza. “What’s really important to you? What’s important to your founder? What’s important to your goals? Where are you going in the next five to 10 years? That discussion is so important.”

In these conversations, it’s essential to ask thoughtful, open-ended questions that identify the core priorities of the partnership. Importantly, conversations are not limited to a one-time occurrence but should be ongoing and inclusive. Regular dialogue enables continuous feedback and evaluation, ensuring that corporate giving efforts remain relevant and responsive to the evolving needs of the community.

“We have to emphasize the power of conversation,” said Meza. “There’s so much value in getting back to basics. That really helps strengthen corporate giving.”

Contributing to positive communal change

Although it may be a trending topic today, corporate giving is far from a fad. Rather, it’s only going to become more prevalent — and important — as our communities are faced with new obstacles and opportunities over time. And with genuine intentions and solid strategies, corporations can make a real difference.

“We can harness the positive power of business to strengthen communities,” said Meza. “In doing so, it’s possible for profit and purpose to coexist.”

Find the right balance of profit and purpose for your business with the dependable partnership and experienced guidance of our team.