As the landscape of corporate leadership shifts, an increasing number of CEOs are scaling back on diversity, equity, and inclusion (DEI) programs amid a politically charged climate. Within the context of rising political tensions and a noticeable downturn in job openings—nearly 40% lower than their peak in 2022—many workers are reluctant to leave their current positions, even when dissatisfied. This has prompted a retreat from proactive social justice initiatives that once defined company cultures, as executives request that employees keep their political opinions out of the workplace. For example, Walmart has confirmed the rollback of its DEI efforts, echoing a wider trend among corporations amidst concerns over alienating various stakeholder groups.
Against this backdrop, a silver lining has emerged in the form of charitable giving programs, especially those that allow employees to choose their own charities—often with employer matching. This approach presents a dual benefit: it fosters employee engagement and allows for a personal expression of values without putting companies at legal risk or embroiling them in controversial political conversations. As noted by Alison Taylor, a professor of corporate responsibility at NYU, this shift gives young employees a voice while maintaining a safer space for corporate leaders wary of backlash. Amid global crises and international conflicts, such as the ongoing situation in Gaza, younger workers, particularly Gen-Z and younger Millennials, feel a compelling need to act and respond to societal issues through charitable avenues.
An industry leader in this space, Benevity—headquartered in Calgary—has capitalized on this trend, reporting over $3.2 billion processed in donations across 265,000 distinct causes in 2023. Notable companies like Adobe, Microsoft, and Visa facilitate their employees’ charitable contributions through Benevity, allowing for a robust platform that accommodates both national and international charities. This flexibility is particularly attractive to younger generations, whose giving priorities increasingly lean towards relief organizations and international aid—demonstrated by their donations to groups like the Palestine Children’s Relief Fund and Islamic Relief.
Historically, workplace giving has evolved significantly since its inception in the late 1800s when local elites structured charitable contributions through organized societies. The establishment of payroll deductions for donations during World War II marked a turning point, and although the United Way initially dominated workplace giving, it has faced decline in recent years, particularly during economic downturns. Recent findings reveal that a mere $1 billion of the United Way’s total $2.5 billion in private donations came from workplace contributions, indicating a shift away from traditional charity models toward employer-sponsored platforms that offer employees more decision-making power over their giving.
Emerging studies indicate a positive correlation between workplace giving programs and employee satisfaction. Research showed that 78% of those with access to such programs felt their company’s values reflected their own, and 89% expressed satisfaction with their employers. This positive gap gives employers further incentive to foster a giving culture, especially as younger employees—the same demographic that largely feels disconnected in the current labor market—are increasingly vocal about social issues. Moreover, Benevity reports that approximately 70% of employers using their platform match employee contributions, underscoring the initiative’s potential as an employee benefit that can enhance engagement and retention.
Despite the growing trend in workplace giving, participation remains low; on average, only 20% of employees in CECP’s survey engaged in their employer match programs. This means potentially billions of dollars in matching funds go unclaimed each year, highlighting an area ripe for growth. Companies are increasingly offering matching gift programs and specifically targeting donations for disaster relief, aligning with the interests of employees while navigating the complexities of the current corporate climate. As traditional DEI and community investment strategies decline, workplace giving emerges as a viable pathway for organizations to foster alignment with employee values and energize a socially conscious workforce in uncertain times.
