Workplace charitable giving surges as companies move away from DEI
NEW JERSEY, UNITED STATES — As corporate diversity and inclusion efforts decline, charitable giving with employer matching is rising as a key way for employees to align their work with personal values.
Platforms like Benevity, which processed $3.2 billion in donations in 2023, allow employees to select causes of their choice while companies provide matching funds.
Young workers drive charitable initiatives
Employees under 30 are particularly active in charitable giving, with organizations like Palestine Red Crescent Society, World Central Kitchen, and Islamic Relief ranking among their top donation recipients. In contrast, older employees donate more to domestic charities. This trend reflects younger workers’ desire to express their values through charitable contributions, even as companies scale back other social initiatives.
“Everyone is looking for a way to keep all these young employees who now expect [their employers to speak out] happy, while not putting their organization at legal risk,” said Alison Taylor, a business ethics professor at New York University.
Enhancing employee engagement and satisfaction
Charitable giving programs also correlate with higher employee satisfaction. According to a Fidelity Charitable survey, 89% of workers at companies offering these programs are satisfied with their jobs, compared to 77% at companies without them.
The flexibility of workplace giving programs—through payroll deductions or giving accounts—has proven effective. Companies like Adobe, Microsoft, and UPS report high employee participation, with 70% of employers offering 100% matching contributions.
Despite the overall growth, there remains substantial room for expansion. Only 20% of employees currently participate in their companies’ matching programs, leaving an estimated $4 to $7 billion in matching funds unclaimed annually, as revealed by the Chief Executives for Corporate Purpose (CECP) survey. This represents a significant opportunity for both companies and employees to increase their charitable impact.
As companies like Walmart roll back their DEI efforts, charitable giving platforms have emerged as a safe harbor for corporate social responsibility. This approach allows businesses to support employee values while maintaining neutrality on controversial issues.
