Media Room

Corporate philanthropy is a crucial contributor to the creation of shared value and is an investment back into the communities that support organizations, in the areas in which they operate.

Motivations for philanthropy vary from one organization to another, and it is often delivered in various forms ranging from monetary donations to nonprofit organizations, in-kind contributions, employee volunteer programs, and partnerships with charitable causes.

In a digitized world, corporations have the advantage of scalable technology and solutions, aligning with the broader trend of digital transformation across industries. Digital solutions have changed how we interact, and how businesses operate.

The following reasons why corporate philanthropy should be increasingly digitized in this modern age are evident:

1.  Efficiency and Automation which comes in two components:

The automation of various processes, such as donation tracking, employee volunteer management, and grant applications is necessary to streamline workflows, reduce the margin of error, and enhance overall efficiency. It also ensures that a business/organization can manage and track project lifecycles from end to end and understand the impact of each stage better.

With digitization also comes data management, where platforms enable effective data management, allowing organizations to track and analyze their philanthropic efforts more comprehensively. This data-driven approach can help companies make informed decisions about where to allocate which resources for maximum impact.

A perfect example of the adoption of technology in philanthropy was the introduction of the cashless one-step collection units by the Salvation Army. They made this move after noticing a dwindling trend in donations using their Red Kettle system where red kettles or buckets are placed outside department stores to receive cash donations. This trend coincided with an increase of card over cash transactions by the general populace, so they sought a solution to meet these shifting patterns in the target audience behavior. Enter the Red Dip: a hardware device by tech company DipJar where you simply dip your card and donate $1 which is automatically remitted to the Salvation Army. This saw to a significant increase in donations across the U.S.

You can learn more about this here: https://youtu.be/3u0IKJd4Suo

2.  Increased Transparency and Accountability:

Digital platforms enable real-time reporting on activities. This transparency fosters accountability, as stakeholders, including employees, customers, and the general public, can easily access information about the company’s charitable initiatives and how the funds collected are used.

Increased Traceability of Impact through digital tools helps organizations better trace the impact of their philanthropic investments. This transparency not only builds trust but also allows for more informed decision-making about future charitable endeavors.

3.  Enhanced Employee Engagement:

One of the bigger challenges in corporate philanthropy is driving employee engagement. Providing a solution for employees to participate better will drive impact both internally and externally, to the beneficiaries.

Many employees prefer simple, digital, and online platforms for charitable giving. For example, incorporating mobile money solutions like M-PESA to your donations page will make it simple for Kenyan based employees to give, taking into consideration the entrenchment of the platform in our daily lives and financial transactions. It makes it easier for staff to contribute to causes they care about.

4.  Creative Solutions to Communication

Experimenting with gamification and recognition is not also a far-fetched idea, and this technology is already in use globally. This can be done by incorporating elements like challenges, leaderboards, and badges to make the giving process more engaging. Recognizing and celebrating charitable efforts digitally can boost morale and reinforce a positive campaign culture.

In the UK, youth homelessness charity Depaul UK launched iHobo – a Tamagotchi-style app where smart phone users have to look after a young person living in dire conditions in the streets for three days. A Tamagotchi is a small electronic toy with a screen, programmed to behave as if it were a pet, requiring the owner to push buttons as if to feed it, clean it, etc. The campaign required one to be alert, involved and creative in caring for their virtual person.

Watch here: https://youtu.be/1bfIT9Ez1h0

Digitizing corporate philanthropy by embracing digital tools can empower companies to make a more significant and measurable impact in their charitable endeavors while aligning with the broader trends in technology and corporate social responsibility. As the I&M Foundation scales up its philanthropic efforts, it will start to rely heavily on developments in technology to be able to deliver true value.