New Report on CSR Industry Trends Shows Shifts in Corporate Social Impact Practices

Rhea-AI Summary

Blackbaud Institute's new CSR Industry Review spotlight report reveals significant shifts in corporate social impact practices for 2023. Key findings include:

1. In-person volunteering increased to 87% of all hours, up 21% from 2021.
2. Small companies (1-1000 employees) led with a 40% volunteering engagement rate.
3. U.S.-based employees showed higher giving engagement (12%) compared to global employees (3%).
4. International grantmaking rose, with nearly 20% of grant dollars awarded to charities outside the U.S.

The report, based on data from 412 companies across 104 countries, highlights the growing importance of corporate social responsibility programs and employee engagement in philanthropic activities.

Positive

• In-person volunteering increased by 21% from 2021, reaching 87% of all volunteer hours
• Overall volunteer engagement increased by 17% from 2022
• Small companies (1-1000 employees) showed the highest volunteering engagement rate at 40%
• U.S.-based employees demonstrated higher giving engagement at 12% compared to 3% for global employees
• International grantmaking increased significantly, with nearly 20% of grant dollars awarded to charities outside the U.S., up from 4% in 2022

Negative

• None.

Corporate Social Responsibility Analyst

This report unveils significant shifts in corporate social responsibility (CSR) practices, with notable implications for both companies and nonprofits. The surge in in-person volunteering to 87% of total hours signals a strong desire for tangible community engagement post-pandemic. This trend, coupled with a 17% increase in overall volunteer engagement, suggests companies should prioritize local, hands-on opportunities to boost employee satisfaction and retention.

Small companies' leadership in volunteering engagement (40% rate for companies with 1-1000 employees) highlights the agility and community-focus of smaller enterprises. Larger corporations might consider emulating this approach by creating more localized, team-based volunteering initiatives.

The stark contrast between U.S. and global employee giving engagement (12% vs 3%) presents both a challenge and an opportunity. Companies with a global workforce should examine cultural factors and giving infrastructures in different regions to boost participation worldwide.

The significant jump in international grantmaking from 4% to 20% of total grant dollars reflects a growing trend towards global corporate citizenship. This shift could be driven by increased awareness of global issues, improved international giving platforms, or strategic alignment with global business operations.

For nonprofits, these trends suggest focusing on creating engaging in-person volunteer opportunities and developing strong partnerships with smaller local companies. Additionally, international nonprofits should capitalize on the increased corporate interest in global giving by showcasing their impact and facilitating easy cross-border donations.

Employee Engagement Specialist

The report's findings underscore a pivotal shift in employee engagement strategies within the CSR sphere. The substantial increase in in-person volunteering to 87% of total hours volunteered indicates a strong employee preference for tangible, community-based interactions. This trend suggests that companies should prioritize local, hands-on volunteer opportunities to enhance employee satisfaction and foster a sense of purpose.

The data revealing that companies offering both giving and volunteering programs see higher engagement is particularly noteworthy. It emphasizes the importance of a diversified CSR approach, allowing employees to contribute in ways that align with their personal preferences and values. This insight should prompt companies to evaluate their current CSR offerings and consider expanding their programs to include both monetary and time-based contribution options.

The 40% volunteering engagement rate among small companies (1-1000 employees) compared to larger counterparts suggests that smaller organizations may be more adept at creating a culture of social responsibility. Larger corporations could learn from this by fostering a more intimate, team-based approach to volunteering, potentially by department or regional office.

The disparity between U.S. and global employee giving engagement (12% vs 3%) highlights an opportunity for companies to reevaluate their global CSR strategies. This may involve tailoring programs to local cultures, improving communication about giving opportunities, or addressing region-specific barriers to participation.

Overall, these trends indicate that companies should focus on creating diverse, locally-relevant CSR programs that offer both volunteering and giving options to maximize employee engagement and social impact.

The Past Year Saw a Significant Increase in In-Person Volunteering, Upward Trend in Giving to International Organizations

CHARLESTON, S.C., July 24, 2024 /PRNewswire/ -- The Blackbaud Institute, a research lab at Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today released a new spotlight brief sharing insights from the company's annual Corporate Social Responsibility (CSR) Industry Review, which analyzes CSR program data and employees' philanthropic engagement. The spotlight report, based on 2023 data representing the giving and volunteering participation of millions of employees at companies spread over 104 countries, highlights a continued increase in the return to in-person volunteering with 87% of all hours volunteered being in-person, a nearly 21% increase from 2021 and a 6% increase from 2022. Additionally, employee engagement in volunteer activities increased 17% from 2022.

"Employees see tremendous value in giving back to their local communities and are craving the interaction and direct impact that volunteer opportunities provide. This year we saw an overall increase in volunteer engagement, and steady participation in giving programs globally, despite many external influencing factors such as economic challenges, political uncertainty, record levels of stress, and much more," said Andrew Troup, director of giving and engagement, Corporate Impact, Blackbaud.

Key findings in the CSR Industry Review Spotlight include: 

• Smaller Companies Led the Charge in 2023
  • The most significant volunteering engagement rate was with small companies (1-1000 employees) with a 40% volunteering engagement rate. Comparatively, companies with 1,001-5,000 employees had the next highest volunteering engagement rate at almost 25%.
• Employees Value In-Person Volunteer Opportunities
  • Of the more than 8.27 million volunteer hours recorded, 87% were in-person events, up 6% from last year and nearly 21% from 2021.
  • Volunteer hours per volunteer remained the same but engagement increased, meaning more employees participated in the volunteer activity. 
• U.S.-Based Employees are Generous with Their Time and Money                   
  • While volunteer engagement was two percent higher for the U.S. compared to global employees, giving engagement was almost four times higher, at nearly 12% for U.S.-based employees compared to three percent for global employees.
• International Grantmaking is Trending Upwards
  • Of the grant dollars awarded by companies through YourCause's GrantsConnect®, nearly 20% went to charities outside the U.S., a marked increase from 2022 when only 4% of total grant dollars was awarded to international charities.

"Nonprofits interested in engaging the millions of potential supporters of their causes in workplaces should be encouraged by the vast possibilities and continued momentum revealed in this data. Nonprofits looking to tap into more corporate support may want to consider the growing volume of in-person volunteering events and consider ways to engage corporate workforces in person for their causes," said Dale Strange, president and chief operating officer, Blackbaud, Corporate Impact.

The report's findings also provide insight to companies looking to increase employee engagement in their corporate volunteering programs: "In line with previous years' data, we continue to find that companies that offer both giving and volunteering programs see much higher engagement than companies that only offer one option," said Troup.

The increase in corporate giving to causes around the world in 2023 may in part reflect enhanced global giving options through Blackbaud's YourCause portfolio. "We have been intentional about expanding our global partnerships to allow companies to amplify and scale their social impact initiatives around the world," said Strange. "Their growing adoption of these capabilities showcases the commitment of companies of all sizes to address crises and support flourishing communities where their employees and customers live – and far beyond their borders."

Blackbaud's CSR Industry Review provides insights and trends from 412 companies (a subset of YourCause® from Blackbaud® clients) and more than seven million employees spread out over 104 countries where employees engage in social impact. Data was collected between January and December 2023 within Blackbaud's YourCause® CSRconnect®, GrantsConnect® and NPOconnect® solutions.

With CSRconnect and GrantsConnect from the YourCause portfolio, companies have access to the largest global charity database. YourCause has expanded its global partnerships to allow companies to amplify and scale their impact by providing access to more charities from around the world, all while feeling confident in the vetting process that stays up to date with local legal standards.

Download the Spotlight Report here.

Learn more about YourCause and Blackbaud's solutions for companies here. 

About Blackbaud Institute
The Blackbaud Institute develops leading-edge research and convenes expert voices to equip the social impact community with knowledge, insight, and confidence. The Blackbaud Institute draws from Blackbaud's data set, the most comprehensive in the social impact community. In addition, the Institute facilitates public research studies to drive original qualitative and quantitative insight. Our research agenda is grounded in a commitment to topics that social impact organizations can apply immediately to better understand, benchmark, and improve their essential business operations. We are guided by our commitment to the social impact sector to provide timely, transparent, and well-rounded research that is free to access. From how organizations run to how donors give, we're 100% focused on research and resources for this sector.

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud's essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud's solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek's list of America's Most Responsible Companies, Quartz's list of Best Companies for Remote Workers, and Forbes' list of America's Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com or follow us on X/Twitter, LinkedIn, Instagram and Facebook.

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Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from Blackbaud's investor relations department. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

 

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SOURCE Blackbaud

FAQ

What were the key findings of Blackbaud's (BLKB) 2023 CSR Industry Review?

Key findings include: 87% of volunteer hours were in-person, up 21% from 2021; small companies led with a 40% volunteering engagement rate; U.S.-based employees showed 12% giving engagement vs. 3% globally; and international grantmaking increased to nearly 20% of total grant dollars.

How did in-person volunteering change in 2023 according to Blackbaud's (BLKB) report?

In-person volunteering increased significantly, accounting for 87% of all volunteer hours in 2023. This represents a 21% increase from 2021 and a 6% increase from 2022.

Which company size showed the highest volunteering engagement rate in Blackbaud's (BLKB) 2023 CSR report?

Small companies with 1-1000 employees showed the highest volunteering engagement rate at 40%, followed by companies with 1,001-5,000 employees at nearly 25%.

How did international grantmaking change in 2023 according to Blackbaud's (BLKB) CSR Industry Review?

International grantmaking saw a significant increase in 2023, with nearly 20% of grant dollars awarded to charities outside the U.S., compared to only 4% in 2022.