For many charities, the holy grail of fundraising is predictable, low-cost, untied income. It funds the unglamorous things that donors don’t get excited about- like salaries, rent, marketing and compliance. Workplace giving or payroll giving has tantalised nonprofits for years with the promise of being that miracle source of income. But, like the charming suitor that turned out to be an internet scam artist, workplace giving has been a big disappointment.
According to Workplace Giving Australia reports, over 4.7 million Australians have access to workplace giving programs via 6,500 employers, but only 204,500 people actually participate. The average size of gift (excluding company matching) is a disappointing $245. Australians are generous by nature, and over 80% already donate to charities or community groups- but not through workplace giving.
So what’s going on? Why is workplace giving not sparking joy? And what will it take to turn this underperforming frog into a dazzling prince?
Economic pressures are impacting workplace giving
Economic conditions and job uncertainty play their part in dampening workplace giving. Employees may be feeling insecure about their jobs and unwilling to channel their giving through an employer that may be shedding jobs. Equally, the cost of living is taking a bite out of household income, and there is less disposable income to donate.
Employee disengagement is undermining workplace giving
Lack of engagement at work means that people compartmentalise their lives. Quiet quitting has given way to quiet cracking and now coffee badging, where staff briefly visit the office long enough to swipe their ID, order a coffee and chat to a colleague before leaving to work remotely. A report from Gallup estimates that two-thirds of the workforce is passively disengaged, whilst 13% is actively, highly disengaged. Community activities, charitable volunteering and giving are joyful, fulfilling experiences that people don’t identify with the workplace.
The sector’s biggest mistake: focusing on the platform
The biggest problem with workplace giving is the misplaced focus on the system itself. A shiny, high-tech giving platform, optimised to make giving easy, is a useful tool, but it’s still only a tool. I put petrol in my car, but I don’t love the petrol- or the car. I do love the destination that it takes me to. I’ve seen the CSR team at a well-meaning bank spend a year doing roadshows and presentations to staff about workplace giving, only to see it rise a measly 2%. No one cares about the system, however efficient it is.
Why nonprofits find payroll giving frustrating
Charities and nonprofits tell us constantly about their frustration with workplace giving. No access to the donor data, no relationship with the donors and often the admin nightmare of many small gifts spread across multiple companies. And when the donor moves jobs, the connection is broken. Many nonprofits start out, hopefully thinking workplace giving is the gateway to bigger corporate partnerships. But it’s like declaring your intent to be a global tech leader and starting out by buying Joe’s Radio Repairs. The pathway to real Million Dollar Partnerships is through relationships, not workplace giving.
What employees and employers actually want
If workplace giving isn’t the answer, what is? Engagement: meaningful, joyful connection and emotion. A workplace giving platform is a useful tool that only HR gets excited about. Corporates cannot inspire employees to give unless they are emotionally engaged first. An engaged workforce means higher productivity, greater talent retention and better customer service. This is where the big opportunity for nonprofits lives.
Millennials are reshaping workplace giving expectations
Nonprofits have stories to tell- real, human, emotional stories about lives changed, and communities improved. Don’t just tell stories- get employees involved in being part of the impact. Millennials now make up over 75% of the workforce. They grew up with the internet and are bombarded with information, so they’re not looking for awareness; they want action and the opportunity to participate. Your charity can be the solution to employee disengagement and employer frustration.
How are the best nonprofits responding?
They are moving beyond simple volunteering to offer a richer and deeper interaction with their organisation and cause. They become the glue that keeps teams motivated, inspired and cohesive.
Dolly’s Dream works with young people to end bullying. Their partnership with EssenceMediaCom brings the entire corporate staff together for Do it For Dolly Day. They fundraise, connect with each other and reach out to their suppliers and networks. The retention rate for the team working on the partnership is 100%, and unheard of achievement for the high turnover media industry. Dolly’s Dream is also working with franchise-based businesses to inspire them about the cause with stories, statistics and expertise. They have created innovative partnership portals that feed participation data back to the corporate partners and provide reporting of the impact of the partnership on the workforce.
The combination of storytelling, inspiration, participation and impact reporting is a powerful way to anchor deep corporate relationships and drive real employee engagement. Workplace giving becomes only a tiny part of the bigger story about partnerships and not the key driver.
So the next time your board suggests focusing on workplace giving to drive partnerships, tell them the circus has moved on. The biggest opportunity is in workforce engagement. If you can deliver real engagement that solves the problem of disengaged and disconnected staff, corporates will be begging to partner with you. Then you’ll finally have that holy grail of untied income.