Benefits of Becoming Donors/Sponsors for Foundations and Corporations


To provide and overview of the motivations and triggers for foundations and corporations becoming donors/sponsors for a cause and if possible, why they donate to foster care/adoption/family services organizations.

Early Findings

Donations/Sponsorship from Corporations

  • Corporate organizations create private/corporate foundations to advance a company’s philanthropic goals and charitable objectives
  • "Corporate foundations allow companies to focus on issues that align with the companies’ brand(s) and the philanthropic concerns of their customer base."
  • Companies donate or sponsor through: direct grants through their grant making departments or foundations, in-kind donations, company-wide day of service events, corporate community fundraisers, and employee paid-release days.

Benefits of Becoming Donors/Sponsors, for Corporations

Brand Visibility and Increased Sales
  • Companies that are involved in philanthropy get their names out there especially when sponsoring charity events.
  • Studies show that global consumers are likely to switch brands to one associated with a good cause.
  • With brand visibility, companies that participate in social giving also enjoy increased sales in their products. From a Nielsen 2013 study on Consumers Who Care, 50% of global consumers, 44% in the U.S., say they would be willing to reward companies that give back to society by paying more for their goods and services
  • 70% of millennials report that they'll spend more with brands that support causes, and this group represents $2.45 trillion in spending power.
Tax Deduction
  • Companies enjoy tax savings from sponsoring charities or charity events.
Initiate Social Change
Build Employee Morale
  • Corporations and businesses that take active interests in their own communities attract good employees and improve the workplace culture due to increased employee involvement and a positive general attitude. “Employees respect companies that care for their community, as it makes them feel good, and increases the emotional attachment to their employer.”

Benefits of Becoming Donors/Sponsors, for Public Foundations

A public foundation also known as a public charity derive their financial support by raising funds from the public by soliciting donations and/or grants, and are mainly involved conducting charitable activities and provide charitable services. Public foundations donate in order to:

Reasons Foundations and Corporations donate to foster care/adoption/family services organizations

  • The cause is consistent with the company's focus areas. For example The Wendy’s Company and The Wendy’s Foundation considers foster care adoption as it's brand's signature cause because the founder was adopted at just 6 weeks old.
  • Visibility: exposure to hundreds of adoption advocates, adoptive families, and community partners. Adoption Options, a non-profit in the adoption sector, and which appears to receive support from corporations gives this as one of the benefits for corporate sponsors.
  • To build workplace morale and empower staff to give back by hosting team–building events, as illustrated by the offering by Together We Rise, an organization that works in foster care.

Summary of Findings

In this hour of research, we were able to find various reasons that influence public foundations, as well as corporations and corporate foundations to sponsor or donate to a cause or charity. We also found some insights on why corporations donate or sponsor causes in the family services sector, although these insights were predominantly from recipients of donations. From our brief research, it appears that many of the motivations that drive the sponsorships/donations from foundations and corporations, in general, don't much differ from those driving donations/sponsorships to family service organizations, specifically.

Research proposal:

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