As corporate leaders face mounting pressure to reassess their Diversity, Equity, and Inclusion (DEI) efforts amid shifting political winds, a new avenue for employees to express their values in the workplace has emerged—charitable giving programs. Following President-elect Donald Trump’s assurances to launch a “war against woke,” and with job opportunities declining significantly, many CEOs are curtailing DEI initiatives and opting for a less politically charged environment. Notably, Walmart recently announced the rollback of its DEI program, further signaling this trend. Even as worker activism continues to rise, evidenced by backlash over events such as the Gaza conflict, companies are leaning toward charitable contributions as a means to appease younger employees who expect their employers to take social responsibility seriously, though without placing the companies at legal risk.
Charitable giving initiatives, particularly those with employer matching programs, are carving out space for employees to champion causes that resonate with their personal beliefs. Benevity, a Canadian fintech firm, stands out as a leading platform in this sector, managing over $3.2 billion in donations to diverse causes in 2023. Companies such as Adobe, Cisco, and Microsoft utilize this service to enable their employees to contribute to approximately 265,000 different charities. Notably, the most favored beneficiaries among young workers—those under 30—reflect a pronounced focus on international relief organizations, with the Palestine Red Crescent Society and Islamic Relief ranking among the top charities supported by these younger givers. This inclination provides insight into how younger generations are utilizing charitable giving as a form of activism to highlight issues they care about deeply.
The tradition of workplace charitable giving has origins dating back to the late 1800s, evolving through decades to include payroll deductions. Even after the United Way allowed designated giving options in 1990, participation rates struggled to rebound following economic downturns. However, the current revival of workplace giving, especially powered by online platforms, has not only renewed interest but has also transformed it into an essential employee benefit. Findings indicate that 78% of employees with access to workplace giving programs feel their company values align with their own, which contrasts sharply with the lower satisfaction reported by those lacking such opportunities. This engagement serves as an indication that companies offering these programs could cultivate a happier workforce even amid general dissatisfaction among Millennials and Gen Z employees in the current workplace climate.
Among the notable aspects of Benevity’s platform is the matching gift feature, where around 70% of employers reportedly match 100% of employee contributions up to a certain limit. This allows companies to not only incentivize donations but to track volunteer participation and encourage community involvement. The flexibility and inclusivity of such platforms afford employees the ability to earmark their donations toward personal causes or build a charitable fund, which can be especially beneficial during fundraising campaigns like Giving Tuesday—when Benevity reported a significant increase in contributions.
While workplace giving remains a small fraction of total charitable contributions in the U.S., it is growing at a faster pace than many other giving channels. The total workplace charitable donations are estimated at $5 billion yearly, but this constitutes only 1% of the overall contributions in the country. In contrast, traditional giving through donor-advised funds has witnessed a notable decline. Benevity’s service not only elevates direct charitable participation but also provides the necessary tax documentation for employees, allowing them to maximize the benefits of their contributions, despite many donations to foreign entities being ineligible for tax deductions.
As DEI initiatives and overt activism recede in the corporate landscape, charitable giving programs may expand further. Despite a general decrease in community investments by many corporations, more have begun offering matching gift programs. A recent survey highlighted that while only 20% of employees participated in their employers’ matching programs, the untapped potential suggests billions in matching contributions remain unclaimed. This reflects a promising opportunity for companies to reclaim a vibrant employee engagement tool that aligns with the changing social landscape, fostering both personal and organizational values through charitable endeavors. Ultimately, charitable giving within the workplace appears to be defining a new approach to corporate responsibility as employees seek ways to integrate their values within their professional environments in a climate where overt social issues are increasingly taboo.
