In today’s philanthropy, the giving habits of people across the United States have seen significant evolution. Non-profit organizations are constantly finding new, innovative ways for both individuals and businesses to support them. In order for non-profit organizations to capitalize on the opportunities, it is important to understand how giving works today. One particularly important aspect to examine is how philanthropy and giving differ between individuals and businesses.
According to Charity Navigator, approximately 70% of all giving in 2016 came from individuals. While traditional giving practices, which include donating a dollar amount to a charity of the individual’s choice, have remained popular, organizations have found a number of opportunities elsewhere. For example, online giving has expanded in recent years, with options to donate to specific fundraising events and organizations available on popular social media properties. Additionally, more options to donate to organizations have been made available in public places like grocery stores and restaurants. The ease of donating makes giving back easier than ever for individuals.
Corporate giving, on the other hand, typically looks much different. Corporate fundraising efforts typically include opportunities like sponsorships. Since most non-profit organizations rely on events throughout the year, they provide sponsorship opportunities in exchange for incentives like free marketing. Sponsorships typically include a higher price-point than is seen in individual giving opportunities as well, so providing incentives can increase a company’s interest. Like individual giving, sponsorships and other corporate giving opportunities can be completed as a one-time transaction or become ongoing supporters for a specific organization.
While individual and corporate giving have key differences, they both play a vital role in supporting today’s philanthropy. Their contributions are often used in different ways and vary in their value and frequency. As a result, organizations should commit resources to both individual and corporate giving, in order to help set them up for long-term success.