Corporate Giving: What it is and why it is so important

Corporate giving is when a business voluntarily donates money, time, products, services or expertise to a charitable cause — through direct donations, workplace giving programs, sponsorships or long-term partnerships. It matters because it builds trust with customers and employees and strengthens a company’s reputation. Donations of $2 or more to a Deductible Gift Recipient (DGR) charity, such as The Fred Hollows Foundation, are tax deductible in Australia, and corporate support helps fund sight-restoring surgery and eye health programs across more than 25 countries. 

Corporate giving refers to a business or organisation donating its money, time, products, services or expertise to a charitable cause. Often, this can be in the form of direct support, or a corporate/workplace giving program. But it can also be in the form of sponsorships or long-term partnerships.  

The corporate philosophy of giving is ensuring reliable support for a cause that matters a lot and ensuring measurable returns for the charity of choice, whilst improving the business’s own reputation, employee engagement and stakeholder trust. 

Find out more about becoming a corporate partner with The Fred Hollows Foundation. 

What is corporate giving?  

Corporate philanthropy, sometimes referred to as corporate philanthropy, has been steadily evolving from a nice-to-have to an expectation.  

Whether it is employees, clients, or investors, there is an increasing tendency to judge a business based on how they translate their principles into action and if/how they give back. It’s no longer just about what they sell. 

That is why corporate giving is so important. 

It is the umbrella term used for the voluntary allocation of any resource by a business to a charitable cause. It can include cash donations, products, services, expertise, or even staff time. At the end of the day, corporate giving is the deliberate business decision and action to direct support of some kind towards a  charitable cause, such as The Fred Hollows Foundation. 

Some of the most common forms include: 

1. Direct monetary donations  

This is a one-off or recurring corporate donation of cash to a charity.

2. In-kind contributions  

This form of giving is support through donated products, services, or even professional skills.  It is sometimes referred to as skilled volunteering.

3. Workplace giving  

Workplace giving programs allow for payroll-deducted employee donations. In some instances this support may even be matched by the employer. Set up or explore workplace giving for your team. 

4. Sponsorships  

This form of monetary support is often tied to funding a specific event, campaign, or selected marketing endeavours. 

5. Long-term partnerships  

A long-term partnership can include a multi-year commitment to a cause. In many cases it is paired with staff engagement programs and a co-branded campaign for mutually beneficial public exposure. 

How does corporate giving impact a company's reputation? How does corporate giving impact a company's reputation?  

A business’s stakeholders are increasingly likely to factor in a company's giving, as well as its products or services, when determining their feelings or thoughts about the business.  

• Purchasing decisions are becoming more and more values-driven.  

• Environmental, social, and governance (ESG) performance is now a key driver of reputation. 

• Consistent, genuine corporate giving builds trust over marketing opportunities. 

• Reputational gains, i.e., through genuine, long term support, compound over time. 

The Beneficial Impact on Employees 

Of course, it is not just the external reputation that matters. Internally, there is significant benefit in a corporate philosophy regarding its effect on employees. 

Giving programs provide employees with an opportunity to contribute to something beyond their daily role. 

This sense of contribution boosts morale, improves retention, and makes for easier recruitment as employees increasingly seek employers with values reflective of their own. 

The Beneficial Impact on Innovation 

Moreover, giving partnerships between a business and a charity can actually provide a number of really significant and innovative benefits. 

Knowledge sharing 

For one thing, knowledge-sharing works both ways. Charities, of course, benefit from access to the business’s expertise, resourcing, and networks. In turn, the business can gain an insight into the communities they also work within and understand the causes they support and their motivations. 

Aligning Strengths 

Charitable partnerships can often align with core business strengths as well. This allows a company to contribute in ways that are not just cash and thereby improve their own logistics, technology, marketing or product design operations. 

What's the difference between corporate giving, sponsorship, and philanthropy? What's the difference between corporate giving, sponsorship, and philanthropy?  

There are multiple distinct terms often used interchangeably. But each one comes with its own definition and that distinction matters for how a business budgets, reports, and talks about its giving. 

• Corporate giving - This term is the broad category of any support given to a charitable cause. It includes  corporate philanthropy and sponsorship under its wing. 

• Corporate philanthropy - This term refers to the act or program of corporate giving but with no direct commercial return expected. It's values-led, long-term in commitment, and not tied to a specific campaign outcome. For example, a multi-year corporate sponsorship to help end avoidable blindness is an application of corporate philanthropy. 

• Sponsorship - Sponsorship is a transactional arrangement. A corporation provides a certain amount of funding in exchange for a business receiving visibility, branding rights, or association with a charitable organisation, event, team, or campaign. In most cases, the business will expect some level of marketing or reputational return. While it is still an important and effective form of corporate giving, the primary driver behind it is not always pure philanthropy.  

As you can tell, a business can certainly engage in all three forms of giving at once.  

How much should a company give to charity? 

There is simply no single answer here. There is no clear market precedent and certainly no legal requirement, let alone minimum. 

To help you and your business consider its corporate giving strategy, here are some general benchmarks. 

• A 1% of pre-tax profit is the most commonly cited global and Australian benchmark for structured corporate giving.  

• Small and medium businesses often give more proportionally, reaching up to 5–6% of pre-tax profit. This may be due to personal motivation or greater local community embedment. 

• Some businesses commit to a 1-1-1 model for supporting charities with resources beyond cash. This means a percentage of profit, product, and employees’ time is each donated. 

• Setting a consistent, budgeted amount and building over time rather than an arbitrary percentage or giving ad hoc support. 

The right giving figure depends on your business, principles and strategy. There is no universal formula for every case. Explore corporate partnerships that suit your business with The Foundation today. 

Is corporate giving tax deductible for a business? Is corporate giving tax deductible for a business?  

Yes, it is. Donations made to a charity with Deductible Gift Recipient (DGR) status, such as The Fred Hollows Foundation, are tax deductible for the business.  

There are a number of influencing factors though, such as the type of gift, how it's structured, and your business's own tax position. We recommend seeking professional advice from your accountant. In the meantime, for a full breakdown of how workplace giving and corporate donations are treated for tax purposes, see our guide to tax-deductible workplace and corporate giving. 

Corporate Donations FAQs 

Is corporate giving the same as corporate social responsibility (CSR)?  

No, the terms are actually distinct. CSR refers to the broader framework that details how a business will operate responsibly. It includes: 

• Labour practices 

• Sustainability and environmental impact 

• Governance 

• Community investment 

Corporate giving may be one part of that framework but it is distinct from CSR. 

Does corporate giving include volunteering?  

Absolutely. Employee volunteering, which is the giving of one’s time and energy, can be in the form of skilled pro bono work or general hands-on volunteering. In either instance, it is a recognised form of corporate giving alongside cash donations and sponsorships. Explore corporate volunteering with The Foundation. 

Can a small business take part in corporate giving?  

For sure. Corporate giving isn't just for large conglomerates. Many small and medium sized businesses give generously and often at a higher proportion of their profit than large corporations. We recommend considering starting with something as simple as a regular monthly donation or a matched giving arrangement, and then consider longer term partnerships in the future. 

What's the easiest way for a business to start giving?What's the easiest way for a business to start giving? 

Most businesses start with a relatively simple and straightforward option: 

• Corporate donations  

• Workplace giving program 

• Matched giving arrangement  

If you run a small or medium sized business and want to embed corporate philanthropy in the organisation but are not sure how, give The Foundation a call today and our team will be more than happy to discuss potential options that suit you. 

How does The Fred Hollows Foundation use corporate donations?  

Businesses engaging in corporate giving with The Foundation are directly supporting sight-restoring surgery, training local eye health workers, and strengthening eye care systems across more than 25 countries in Africa, Asia, the Pacific, and remote Australia. 

In fact, 75% of donated funds go directly towards eye health programs and advocacy. For people living with avoidable blindness, this support can be life changing. 

To explore corporate giving options or simply donate to The Fred Hollows Foundation, click here.