Corporate philanthropy is the practice of companies donating resources – whether financial, in-kind,or through volunteerism – to support causes that align with their values and mission.
In recent years, corporate philanthropy has evolved into a key business strategy, creating win-win situations for companies and communities.
In San Diego, businesses are increasingly recognizing the value of investing in their local communities and contributing to causes that improve the quality of life for residents. Corporate giving not only strengthens a company’s reputation but also helps address pressing social issues, from educational access to environmental preservation.
According to the most recent Giving USA data, in 2023, U.S. companies donated over $20 billion to charitable causes, with 60% of businesses engaging in corporate social responsibility (CSR) efforts that support their local communities. In San Diego, where businesses thrive in an economy shaped by technology, innovation and tourism, the opportunities for corporate philanthropy are vast and impactful.
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Corporate Philanthropy Definition
According to the Council on Foundations, corporate philanthropy refers to the investments and activities a company voluntarily undertakes to manage and account for its impact on society responsibly. Philanthropic investments and activities include:
- Money
- Donations of products
- In-kind services
- Technical assistance
- Employee volunteerism
- Other business transactions
The purpose of these investments and activities is to advance a social cause, issue or the work of a nonprofit organization.
Corporations often feel it is their social responsibility to give back, building a positive culture and workplace within their companies. They often want to show gratitude and give back to the communities that have helped make them profitable. While revising your disaster relief strategy might be one action to consider, you can expand your corporate giving much further than that.
For businesses in San Diego, engaging in philanthropy is a direct way to enhance brand reputation, improve employee morale, and build stronger connections with the community.
Philanthropy also allows San Diego businesses to address some of the most critical issues facing our region. From supporting mental health services to combating climate change, corporate giving can have a profound impact on the community. By aligning with local needs – and partnering with a community foundation to help identify those needs – companies can make a tangible difference where it matters most.
7 Types of Corporate Philanthropy
The seven most common forms of corporate philanthropy are:
- Matching Gifts: Companies financially match donations that their employees make to nonprofit organizations.
- Volunteer Grants: Companies provide monetary grants to organizations where employees regularly volunteer.
- Employee & Board Grant Stipends: Corporations award grants to employees and/or public boards to donate to the nonprofit of their choice.
- Community Grants: Company programs award nonprofit organizations that apply for grants based on defined criteria.
- Volunteer Support Initiatives: Companies partner their employees with nonprofits to provide specialized support.
- Corporate Sponsorships: Companies provide financial support to a nonprofit that in return acknowledges that the business has supported their activities, programs or events.
- Corporate Scholarships: Corporations provide scholarship dollars to universities on behalf of students seeking support to continue their studies, encouraging college education and workforce development.
Download the Corporate Giving Playbook for San Diego Businesses
Key Steps to Building Your Corporate Giving Strategy
1. Create a Plan
A thoughtful corporate giving plan ensures that your efforts are aligned with your company’s values, while also addressing key community needs. San Diego Foundation’s Giving Team can help you develop a strategy that integrates your business goals with local opportunities for impact. Whether you’re interested in making one-time contributions or creating a long-term giving program, we can guide you through the process.
2. Identify Opportunities
San Diego has a wide range of critical issues that your business can address. Some of the most pressing areas include:
- Education: Supporting scholarships, mentorships and after-school programs for San Diego students.
- Children and Families: Ensuring families have access to essential services, such as childcare, mental health resources and housing.
- The Environment: Supporting initiatives that address environmental sustainability, conservation efforts and green business practices.
Identifying the right areas for your company to focus on ensures that your corporate philanthropy efforts resonate with your employees and make a measurable impact in the community.
3. Engage Your Employees
The power of corporate philanthropy lies not just in the financial contribution but in employee engagement. According to recent studies, employees who are involved in charitable giving are more likely to feel a sense of pride in their company and stay longer. Whether it’s through a matching gift program, organizing volunteer events or allowing employees to choose which causes to support, employee involvement increases the effectiveness of your company’s giving efforts.
Download the Corporate Giving Playbook for San Diego Businesses
Benefits of Corporate Philanthropy for San Diego Businesses
Corporate giving provides a wide range of benefits for San Diego businesses, both tangible and intangible. Some of the key advantages include:
- Enhanced Public Image. Companies that actively support causes their communities care about build stronger, more positive reputations. This can lead to increased brand loyalty, attracting new customers, and gaining recognition as a business that cares about more than just the bottom line.
- Employee Retention. Businesses with a strong corporate philanthropy program are better able to retain top talent. Employees today expect their employers to be socially responsible, and those who feel their work is making a difference are more likely to stay engaged and committed.
- Tax Benefits. Corporate donations can provide tax deductions that help offset your company’s costs. By establishing a corporate-advised fund with San Diego Foundation, your company can maximize its charitable giving and benefit from smart financial management.
- Long-Term Impact. Corporate philanthropy doesn’t just address immediate needs. It can create lasting change. Whether it’s supporting a scholarship program that enables local students to pursue higher education or contributing to environmental conservation, your company’s giving can have a ripple effect that benefits the community for years to come.
With benefits like these, it’s no surprise that some of the most successful corporations in the U.S. heavily invest in corporate philanthropy, including Coca-Cola Company, which offers a $20,000 employee matching opportunity, and Walmart, which provides $250 to employees for 25 volunteer hours.
Approaching Corporate Philanthropy with Advised Funds
Local companies in San Diego County enhance their corporate giving through corporate-advised funds.
An advised fund is a charitable vehicle that offers flexibility and personalization, allowing companies to engage employees and make a strong philanthropic impact. With advised funds, companies can give gifts of cash, stock, real estate or other assets to the fund, which is managed by a charitable sponsor organization, like a community foundation.
As the charitable assets grow under the stewardship of advisors and investment managers, companies grant the funds to nonprofits. Corporations recommend when to give grants, how much and who will receive the funds.
San Diego Foundation has been a trusted partner in corporate philanthropy for over 50 years, helping businesses create custom giving programs that align with their mission and values. With our deep knowledge of local community needs and strategic giving approaches, we partner with companies like Hologic, Qualcomm, Viasat, WD-40 Company, Cox Communications and more to design a corporate giving plan that makes an impact and aligns with business goals.
Our Corporate Giving Playbook for San Diego Businesses offers step-by-step guidance on how to develop and manage your company’s philanthropy efforts. From establishing a corporate-advised fund to creating employee engagement initiatives, this playbook provides you with the tools you need to succeed.
If your company is just beginning to consider how to give or you’re already making a difference in the community, SDF is here to help you further your philanthropic goals. Contact our Director of Development & Stewardship Cami Mattson at cami@sdfoundation.org or (619) 814-1385 to learn more.
Or, download the Corporate Giving Playbook for San Diego Businesses today.
Download the Corporate Giving Playbook for San Diego Businesses
The Corporate Giving Playbook for San Diego Businesses teaches you the basics of building and sustaining a successful corporate giving program that unlocks benefits for your employees and your brand.
