Only one in four companies donate to charities, research by Charities Aid Foundation has found.

This sees most firms not giving anything to charity, either as cash donations, in-kind giving or through staff volunteering schemes, CAF warns.

This leaves firms at risk of losing the loyalty of their staff, particularly among their younger workers, its research suggests.

Just over half of all workers say working for a firm that supports charities increases their loyalty to their employer and their pride in working there.

This increases to more than three in five generation Z (16–24-year-olds) workers.

The research also found that just under half of employees say charity involvement by their bosses “increases their willingness to go the extra mile for their employer”.

However workers’ interest in their firms’ philanthropy differs across generations.

More than half of millennials (aged 25 to 34) join generation Z workers in also valuing charity work by their employer, but this drops to just below half among 45–54-year-olds.

Among over 55s only a third saw charity link ups and donation by firms positively.

“Giving to charities is good for business, said CAF head of corporate clients Philippa Cornish.

“It offers businesses the opportunity to demonstrate their commitment to their communities as well as their staff.

“To attract and retain new generations of workers, corporate giving is not just a nice to have.

“It’s become an important consideration about whether you want to work for somebody or not, and businesses should remember this, particularly when competition for talent is high.”

Firms that commitment to giving to good causes include financial services firm The Skipton Group, which commits 1% of its pre-tax profits to charity.

“Our charitable giving aims to help our members and wider society overcome barriers preventing people from having a home, accessing financial advice and education, and increasing awareness and action to support making our homes warmer and more energy efficient,” said the Group’s head of sustainability Michaela Wright.

Research released last year by What Impact found that two in five charities in England, Scotland and Northern Ireland who want to collaborate with the private sector have yet to find a corporate partner.

The proportion is even more stark in Wales, where three in five are not working with a business in a corporate partnership despite wanting to.

Corporate giving advice

Firms wanting to engage their staff in corporate giving are being urged by CAF to:

• Commit to matched giving such as doubling regular giving by staff through a payroll giving programme.
• Ensure staff are involved in corporate giving strategies, such as choosing charities to support.
• Regularly communicate with staff about what the company’s charitable activities.
• Enable employees to volunteer.

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