Over half of SMEs support charitable organisations in Finland

More than half (53%) of small and medium-sized enterprises (SMEs) donate to charities or engage in other forms of organizational collaboration in Finland, according to a business survey commissioned by the Finnish Fundraising Association (VaLa).

Conducted by Taloustutkimus at the end of May, and involving 300 company interviews, the survey found that those in the trade and service sectors were most likely to donate or collaborate with one or multiple charity organizations, along with larger companies by revenue and staff size. 9% of respondents expressed interest in collaboration but had no experience with it yet.

A little over a third of the survey respondents were not interested in donating or collaborating with charity organizations. A significant portion of these respondents represented small companies or those in the construction or industrial sectors.

Companies see financial situation as an obstacle to donations

The most significant reason (40%) for the lack of interest, as reported by respondents, was a poor financial situation.

“The study shows that this is biggest reason for not donating, just as it is for individuals. Fewer companies said they lacked interest or willingness. But even the smallest contributions from donors are valuable to organizations,” reminds Pia Tornikoski, Secretary General of the Finnish Fundraising Association.

Charities are also keen on collaborating with companies

There is also strong interest within the nonprofit field for cooperation with companies. According to a charity survey conducted in March-April, corporate collaboration was an important funding source for 28% of respondents, and a third planned to invest in it in the future. 62% of organizations reported having collaborated with one or more companies.

VaLa has previously investigated what companies aim to achieve with donations or organizational collaboration. Nearly 90% of respondents to a narrower survey stated that implementing corporate responsibility was a fairly or very important motive. Over 70% of respondents also mentioned brand strengthening among current and/or potential customers and enhancing the employer image among current employees and job seekers as fairly or very important.

Future collaboration views differ between companies and charities

When asked about future prospects, nearly half of the companies considered it most likely that they would increase financial support to charities. Additionally, over 30% believed that pro bono collaboration and enabling employee volunteering would increase in the next two years.

Charities also expected to see an increase in pro bono collaboration (62%) and companies’ donations and financial support (55%). Charities firmly believed that companies would increasingly utilize their expertise, for example by purchasing services from charities (70%). However, less than a quarter of companies believed in this.

“Charities often have solid expertise that companies could utilize to advance and develop their business. I believe we will see more cross-sector collaboration in the future, benefiting the entire society,” hopes Pia Tornikoski.

About the research

Taloustutkimus conducted a survey commissioned by VaLa ry as part of the Business Telebus round, with 300 SMEs (employing 5-249 people) responding. The survey investigated companies’ views on donating to charities and collaboration between companies and NGOs.

VaLa and Marketing Finland conducted an online survey for Marketing Finland member companies, “Corporate Donations and Collaboration with Organizations,” in spring 2024. The survey received responses from 22 companies, more than half of which employed over 250 people.

Taloustutkimus conducted the “Organizations’ Financial Operating Conditions 2024” survey commissioned by VaLa ry and the Ministry of Justice, which examined the sources of income and fundraising developments for organizations. The survey was conducted in March-April 2024, with interviews from 120 charity organizations from various sectors.

Main picture by Dylan Gillis on Unsplash