COVID-19 has thrown a spotlight on the corporate sector, and maintaining high team morale, employee engagement, and positive community relationships have all become major concerns for business leaders. So, in an age when your business is under the magnifying glass of public scrutiny, how can you reach all of these goals without diverting funds from other important projects?
For many businesses, the answer is in-kind giving. All corporate philanthropy programs, such as matching gifts and volunteer grants, are great ways that your organization can support local charities, positively promote yourself to customers, and boost employee engagement. However, in-kind donations can be an especially cost-effective and simple method to gain extra visibility and secure customer loyalty using your own extra inventory of products and services.
In fact, the only obstacle standing between many businesses and this incredibly efficient giving type is identifying the right nonprofits and causes at the right time to use your donations. Luckily, we have a solution for this, too.
If your business is eager to revamp its corporate philanthropy and launch a successful in-kind giving program right off the bat, then you’ve come to the right place. Here’s everything you need to know about in-kind donations, as well as software solutions to help you engage the right nonprofits as quickly and easily as possible:
Whether you’re just getting started with an in-kind giving program or you’re struggling to improve your current program’s operations, anyone can benefit from these essential in-kind best practices and tools. Ready to revamp your own corporate philanthropy campaigns through in-kind giving? Let’s dive in with a quick overview.
What are In-Kind Donations?
In-kind donations are just non-cash contributions. That’s it, plain and simple. This typically includes goods such as your own company’s products, gift certificates, supplies, or equipment.
While terms like “non-monetary corporate social responsibility” may make in-kind donations seem like an overly-complicated addition to your corporate giving programs, this giving type is surprisingly simple.
When you know what nonprofits in your community are looking for, you can simply provide them with that resource so that they can continue advancing their mission. Many restaurants donate dining gift certificates, theme parks often donate admission tickets, and donated food and beverages are popular either served at events or in swag bags.
If your business doesn’t have material inventory or products to donate, don’t fret—your support doesn’t even need to be physical. Services like volunteer time or pro-bono work also fall under the in-kind umbrella.
More often than not, the organizations that receive in-kind donations will be nonprofits. But the sources for these gifts can include anyone and anything from individuals to businesses to associations and major organizations like colleges and universities.
Essentially, almost anyone can start participating in the in-kind donation process. But your organization can stand out from the crowd in what you choose to donate and how you carry out your own in-kind campaigns.
Examples of In-Kind Donations
Depending on what your own business has to offer and what local nonprofits need, in-kind donations can take many different forms. We’ve already mentioned a few types of gifts you might encounter, from physical goods to intangible services. However, there are several other common forms of this giving type that you may not have been aware of.
Here are the most common examples of in-kind contributions that nonprofits are looking for:
Goods. Most businesses will offer in-kind contributions in the form of physical goods, such as supplies, equipment, technology, and even software tools. Here at DonationMatch, we often help to facilitate the movement of a companies’ own products, samples, or extra inventory that they may not have room for. This allows companies to expand their corporate philanthropy programs, clear storage space, and truly provide help for a nonprofit in need.
Experiences. Experiential donations may include tickets to a concert, sporting events, or exciting activities like bungee jumping or a hot air balloon ride. These initiatives not only provide an opportunity for local causes to host exciting events, but they also engage local supporters and expose potential customers to your brand in a fun and unique way. For example, if you work at a hot air balloon company, you might give a free ride in kind for a nonprofit to sell at their next charity auction. The nonprofit will raise funds and your brand will suddenly reach their entire audience as they bid.
Services. If your business isn’t product-based and it wouldn’t align with your brand to offer experiential donations, consider contributing your services in kind instead. Conducting pro-bono work, developing nonprofit brands, designing logos, providing accounting services, and even offering your business’s building as a meeting or event location are all ways that you can participate in the in-kind giving process.
No matter what kind of business you conduct or what your local missions may need, you can find a way to support charitable causes. If your organization isn’t able to directly contribute its inventory or products to nonprofits in your area, you can rest easy knowing that there are myriad other ways to offer support through in-kind giving.
Benefits of In-Kind Giving
When some people hear the word “corporate philanthropy,” the first thing to come to mind is monetary donations or sponsorships. But before you start writing checks left and right to your local food banks and animal shelters, consider the unique benefits of in-kind donations.
The in-kind donation process doesn’t just assist nonprofits in need by providing a source of direct goods and services. Both nonprofits and companies alike can benefit from a robust in-kind giving program.
For Businesses
Corporate philanthropy is a long-standing tradition for many organizations. As pillars of their communities, business leaders are expected to not only provide their own valuable services but also give something back to the people who supported them in their journey toward success.
That said, corporate social responsibility doesn’t just mean that you’re throwing support to other organizations with no benefits in return. Corporate philanthropy, and specifically in-kind giving, can increase your sales, boost employee retention, and save precious revenue for your business.
Consider these key ways in which in-kind donations can directly benefit your own business:
Earn positive publicity within the community. A good public image for your business is more than just a source of personal pride. Companies that support local, charitable causes are far more likely to gain the respect and appreciation of not only the nonprofits they’ve helped, but also other businesses and potential customers.
Gain greater loyalty from customers. When a customer chooses to support your business, their decision will be backed by more than just whether or not they like what your organization is selling. A Cone Communications corporate social responsibility study found that 87% of customers will choose to purchase a product if a business advocates for a cause they care about. Social good initiatives will allow your business to stand out by standing for causes that your supporters believe in.
Engage employees with philanthropy. Boost your employee engagement by involving them in causes and campaigns that matter to them. By providing volunteering and in-kind donation initiatives, your business will show your value beyond simple, corporate interests, and satisfy your employees’ desires to be a part of something bigger and more important than themselves.
Earn a tax write-off. On top of all of the other workplace and customer-relation advantages, in-kind giving could also qualify your organization for a tax break. The IRS allows companies to potentially deduct the fair market value of their in-kind contributions on their annual reporting.
In-kind giving is far more than just a moral responsibility for your company. It provides an engaging, unique, and fulfilling opportunity for your business to cement itself as a benevolent and essential force in your community.
For Nonprofits
It’s not enough for you to understand how in-kind giving can help your own business. After all, there’s an entirely separate side of the donation process beyond just organizing and sending out your gifts: the nonprofit’s perspective.
When you’re also able to understand how in-kind giving can help nonprofits on the receiving end of your aid, you can build a more accurate and effective strategy to begin launching your charitable community efforts.
The benefits that nonprofits will encounter from in-kind giving include:
Accessing goods and services that may have otherwise been too expensive to buy outright.
Obtaining items and packages that can be utilized in a silent auction or raffle to raise money.
Freeing up funds to be reallocated and used for other important initiatives.
Enabling product or item-based nonprofit organizations, such as thrift stores, to continue their operations at a higher quality and better serve the community.
Gaining access to vital supplies or services immediately, rather than having to wait for monetary donations to come in and then purchasing the necessary supplies.
Don’t forget about your gift recipients in the in-kind donation process! These organizations rely on your contributions to improve their operations, and it’s up to you to provide the right goods, services, and aid that will allow them to take one step closer towards mission success.
Tips for Starting an In-Kind Donation Program
It’s one thing to theoretically weigh the pros and cons of a corporate philanthropy project, but actually launching your own in-kind donation initiative can be intimidating.
Follow these insightful tips and tricks to carefully manage your own communication, marketing, and event operations and pave the way for program success:
Talk to nonprofit partners to determine the types of in-kind donations that are most helpful for them. This ensures that you’ll have the most effective impact on their missions and will maximize the chance that your business will be remembered for creating a positive, memorable experience for your local community.
Use an in-kind donation platform to manage your giving program. The right in-kind donation software will both facilitate your operations and offer unique, intuitive solutions to optimize your CSR initiatives. Be on the lookout for an in-kind donation program that allows you to screen in-kind donation requests, track giving statistics, and facilitate introductions to other organizations that fit your desired criteria.
Promote your giving opportunities to the wider community. If no one knows about your business’s philanthropic initiatives, did they really happen? Supporting your community and providing aid to a deserving cause is one of your responsibilities as a business leader. However, by not efficiently marketing your giving program, you are missing out on some of the greatest benefits of engaging in corporate giving, such as brand loyalty and positive exposure for your business!
Maintain accurate records to be able to write off your contributions on your taxes. Considering the requirements of the IRS and all the hoops your organization may have to jump through, the reporting process for any CRS program can be a pain. That’s what makes it so important to invest in a software that will carefully, automatically track and organize this important data. This will simplify the reporting process later on down the road and cut down your organization’s annual operating costs.
Confidently dive into your future corporate philanthropy endeavors with these in-kind donation best practices. These CRS fundamentals should guide you in your optimization of the in-kind giving process and ensure that your program is a success from the outset.
However, if you’re still hesitant on how to make the most of your in-kind contribution efforts, our intuitive software solution has you covered.
How DonationMatch Can Kickstart Your In-Kind Donation Program
There are many corporate social responsibility services on the market, but DonationMatch’s platform is the only dedicated in-kind donation network that will streamline the process and introduce your business to new, targeted opportunities for in-kind giving.
DonationMatch is a turnkey in-kind donation platform that helps businesses easily manage how products and services are distributed to deserving organizations within their communities. With our donation and marketing solution, your organization can tackle its corporate philanthropy programs with intelligent, data-driven strategies.
For example, we offer services such as:
Built-in contact and organization vetting
A streamlined application review process
Detection and prevention of duplicate requests
Automated reminders and messaging with your nonprofit and community partners
Integrated solutions for e-delivery of barcoded tickets and gift certificates
Real-time reporting and giving statistics
One-on-one support from our team to help your organization thrive
Our software is made to suit the needs of every business ready to break into the realm of corporate social responsibility. We’ve helped thousands of organizations, both big and small and spanning across every sector of the economy. Take a look at just a few of the generous corporations that we’ve helped in the past:
Six Flags North America. From experiential ticket donations to Project 6 and their Give Kids the World Passport program, Six Flags North America has been able to maximize the reach of their renowned Six Flags Friends program with the power of our in-kind matchmaking network.
The Museum of Contemporary Art in Chicago. Since partnering with DonationMatch, Chicago’s MCA has been able to roll out its Household Membership program with ease. This partnership program with various 501c3 organizations allows the museum to quickly and efficiently share experiential tours and admission opportunities to deserving missions across the state.
Medieval Times. With DonationMatch as their donation portal, the Medieval Times corporate office enabled each of the company’s ten locations to efficiently accept and fulfill requests from qualified, well-suited nonprofits in each of their North American markets. They have since been able to distribute hundreds of thousands of dollars in ticket donations in a trackable, streamlined manner, making a positive impact in each individual community.
With the help of our specialized in-kind donation solution, these organizations were able to cement themselves in and beyond their communities as changemakers and philanthropic giants. To take your own corporate social responsibility efforts to the next level, reach out to us and begin a free trial of our comprehensive donation platform.
Additional Resources
Especially now, as COVID-19, the Great Resignation, and our changing corporate culture is throwing attention on company practices, your business must take a moment to reflect on how you can create more robust corporate social responsibility programs.
In-kind donations provide that solution, and so much more. And with DonationMatch’s intuitive CSR solution, your business can launch its own in-kind giving program with intelligence and insight. Our software is tailor-made to match your business with the best requests, events, and nonprofit organizations to suit your needs, and our dedicated team is here to help you through the corporate philanthropic journey every step of the way.
To learn more about corporate social responsibility, best practices, and different programs and software solutions, visit these resources:
Corporate Philanthropy Made Easy. Check out this page to learn more about the most common challenges of corporate social responsibility, how the DonationMatch network can overcome these pitfalls, and different plans that might fight your needs.
Top 3 Things Donating Can Do For You and Your Business. How can donations strengthen your business and boost exposure for your brand? Click here to dive further into this topic.
GiveBack Programs. Interested in exploring more of DonationMatch’s unique corporate giving services? Check out this article to learn more about the marketing capabilities of our GiveBack program.
