Corporate Giving and Philanthropy
Expert-defined terms from the Professional Certificate in CSR and Nonprofit Partnerships course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
**Accountability** #
The obligation of an organization to be responsible for its actions, including transparency, reliability, and ethical behavior. In corporate giving and philanthropy, accountability is crucial for building trust with stakeholders and ensuring that resources are used effectively to achieve social impact.
**Active Philanthropy** #
A proactive approach to philanthropy that involves engaging directly with grantees, communities, and other stakeholders to understand their needs and develop solutions. Active philanthropy often involves collaboration, long-term commitments, and capacity building to help grantees achieve their missions.
**Annual Giving** #
A fundraising strategy that involves soliciting donations from individuals, corporations, and foundations on a regular basis, typically on an annual basis. Annual giving is often used to support ongoing operations and programs, as well as to build relationships with donors and establish a loyal base of support.
**Capacity Building** #
The process of strengthening the skills, knowledge, and resources of an organization to enable it to achieve its mission more effectively. Capacity building can include training, technical assistance, infrastructure development, and other forms of support. In corporate giving and philanthropy, capacity building is often used to help grantees build their organizational capacity and increase their impact.
**Charitable Contributions** #
Donations made to nonprofit organizations for charitable purposes, such as providing services to the poor, promoting education, or supporting the arts. Charitable contributions can take many forms, including cash, in-kind donations, and volunteer time.
**Corporate Foundation** #
A separate legal entity established by a corporation to support charitable activities. Corporate foundations are typically funded through corporate profits, and they operate independently from the corporation's business operations.
**Corporate Giving** #
The practice of corporations making charitable donations to nonprofit organizations, either through a corporate foundation or directly from the corporation's profits. Corporate giving can take many forms, including cash, in-kind donations, and employee volunteer programs.
**Corporate Philanthropy** #
A broader concept that includes corporate giving, as well as other forms of corporate social responsibility, such as volunteer programs, cause marketing, and sustainability initiatives. Corporate philanthropy is often used to build brand reputation, engage employees, and create social impact.
**Corporate Social Responsibility (CSR)** #
The concept that corporations have a responsibility to society beyond their legal and economic obligations. CSR involves integrating social, environmental, and ethical considerations into corporate decision-making and operations.
**Crowdfunding** #
A fundraising strategy that involves soliciting small donations from a large number of people, typically through an online platform. Crowdfunding can be used for a variety of purposes, including supporting social enterprises, disaster relief, and artistic projects.
**Cause Marketing** #
A partnership between a corporation and a nonprofit organization that benefits both parties. Cause marketing involves promoting a cause or social issue in conjunction with a product or service, with a portion of the proceeds going to support the nonprofit.
**Due Diligence** #
The process of evaluating a potential grantee or investment to ensure that it is a sound choice and that resources will be used effectively. Due diligence can include reviewing financial statements, assessing organizational capacity, and conducting site visits.
**Employee Volunteer Programs (EVPs)** #
Programs that encourage employees to volunteer their time and skills to support nonprofit organizations. EVPs can take many forms, including company-sponsored volunteer days, skills-based volunteering, and pro bono legal services.
**Empowerment Evaluation** #
An approach to evaluation that involves engaging stakeholders in the evaluation process and building their capacity to evaluate their own programs. Empowerment evaluation is often used in corporate giving and philanthropy to help grantees build their evaluation skills and increase their impact.
**Endowment** #
A permanent fund established by a nonprofit organization or foundation to support its mission in perpetuity. Endowments are typically invested in a diversified portfolio, with the income generated used to support the organization's programs and operations.
**Family Foundation** #
A private foundation established by a family to support charitable activities. Family foundations are typically funded through the family's personal wealth, and they are often governed by family members.
**Foundation** #
A nonprofit organization that supports charitable activities through grants or other forms of support. Foundations are typically funded through endowments or donations from individuals, corporations, or other sources.
**Giving Circle** #
A group of individuals who pool their resources to support charitable activities. Giving circles often involve a collaborative decision-making process, with members voting on which organizations to support.
**Grant** #
A financial award made by a foundation or corporation to support a specific project or program. Grants are typically awarded through a competitive application process, with applicants required to submit a proposal outlining their project goals, activities, and budget.
**Impact Investing** #
The practice of investing in companies, organizations, or funds with the intention of generating both financial returns and social or environmental impact. Impact investing is often used in corporate giving and philanthropy to support social enterprises, affordable housing, and other impact-oriented investments.
**In #
Kind Donations**: Non-cash donations, such as goods, services, or expertise, made to support a nonprofit organization. In-kind donations can be used to support a variety of needs, including program delivery, administrative support, and marketing.
**Matching Gifts** #
A corporate giving program that matches employee donations to nonprofit organizations. Matching gifts can be used to incentivize employee giving and increase the impact of charitable contributions.
**Microlending** #
The practice of making small loans to individuals or groups who are unable to access traditional forms of credit, often in developing countries. Microlending is often used to support entrepreneurship and economic development.
**Nonprofit Organization** #
A tax-exempt organization that is organized and operated for charitable, educational, scientific, or other purposes that are beneficial to the public. Nonprofit organizations are typically supported through donations, grants, and earned income.
**Philanthropy** #
The practice of giving time, money, or other resources to support charitable activities or promote social good. Philanthropy can take many forms, including individual giving, corporate giving, and foundation grants.
**Pro Bono Services** #
Professional services provided free of charge to support a nonprofit organization or promote social good. Pro bono services can include legal, consulting, marketing, and other professional services.
**Social Entrepreneurship** #
The practice of creating and managing a business or organization with the primary goal of achieving social or environmental impact, rather than maximizing profits. Social entrepreneurship often involves innovative solutions to complex social problems.
**Social Impact Bond (SIB)** #
A financing mechanism that involves private investors providing capital to support social programs, with the government or another entity repaying the investors based on the program's success in achieving social outcomes. SIBs are often used to support programs in areas such as education, healthcare, and criminal justice.
**Strategic Philanthropy** #
A philanthropic approach that involves aligning giving with an organization's mission, values, and strategic goals. Strategic philanthropy often involves careful planning, evaluation, and reporting to ensure that resources are used effectively to achieve social impact.
**Sustainability** #
The practice of creating long-term economic, social, and environmental value through responsible and ethical decision-making. Sustainability is often used in corporate giving and philanthropy to support initiatives that promote environmental conservation, social equity, and economic prosperity.
**Venture Philanthropy** #
A philanthropic approach that involves providing both financial and non-financial support to high-potential social enterprises, often with a focus on long-term impact and capacity building. Venture philanthropy often involves close collaboration between donors and grantees, with a focus on results-oriented outcomes.
**Volunteerism** #
The practice of giving time and skills to support a nonprofit organization or promote social good. Volunteerism can take many forms, including short-term projects, ongoing commitments, and skills-based volunteering.