Serving Clients Full Circle

Writings by Randall

From 1 Percent to 50 Percent---What Nonprofits Should Learn About Employee Giving

A recent piece in the Chronicle of Philanthropy highlighted a company that increased employee participation in its giving program from 1 percent to more than 50 percent. In some business units, participation exceeded 80 percent. More than $2 million was directed to nonprofit causes.

That kind of shift does not happen because someone sent a better email.  It happened because leadership treated employees as a strategic priority, not an annual campaign obligation.

In the article, the company increased its match from 1 to 1 to 2 to 1. It lowered barriers to entry. It added payroll deduction. It expanded eligible organizations. Senior leaders tracked participation monthly. Stories of impact were shared internally. Employees could see both the outcome and the expectation.

Participation followed.

Large nonprofits, particularly hospitals and universities, often speak about employee giving as a point of pride. They know it signals internal alignment. It demonstrates belief in mission. It can even influence external donors.

Yet many of these institutions struggle with participation rates in the single digits.

The lesson from the Chronicle example is straightforward. Employee giving does not improve because of messaging alone. It improves when it is embedded in culture, leadership behavior, and systems.  Here are several recommendations for nonprofit leaders.

First, visible executive participation.
Presidents, CEOs, deans, and service line leaders must give early and publicly. Not in a performative way. In a consistent and transparent way. Participation data should be shared by department. Leaders should be accountable for engagement within their units. Culture follows behavior.

Second, reduce friction.
Payroll deduction should be simple. Minimum gifts should be accessible. The match, if financially possible, should be meaningful. A 2 to 1 match communicates seriousness. If that is not feasible, tiered matches or limited time enhanced matches can create momentum. The easier it is to participate, the higher the rate.

Third, clarify purpose.
Employee giving campaigns often feel generic. “Support the mission” is not specific enough. Hospitals can focus on a defined patient initiative. Universities can align giving with student success funds or research acceleration. Employees respond to tangible impact, particularly when it connects to their daily work.

Fourth, tell internal stories.
The Chronicle case emphasized storytelling. This is equally relevant in nonprofit settings. Feature nurses who support patient assistance funds. Highlight faculty who give to scholarships. Make the impact visible within the community employees already care about.

Fifth, measure and manage.
Participation rates should be reviewed regularly. Not annually. Monthly or quarterly dashboards drive attention. When leaders see data, behavior adjusts.

Employee giving is more than incremental revenue. It is a signal of internal conviction. When staff invest in their own institution, it strengthens external credibility. Major donors notice. Board members notice.

Hospitals and universities often invest heavily in external campaigns. The same discipline applied internally can transform employee giving from a checkbox exercise into a cultural asset.

The Chronicle story shows that dramatic growth is possible. The question is whether nonprofit leadership is willing to treat employee philanthropy with the same strategic rigor they expect from their advancement teams.