The Government’s September budget proposed that each year, companies could receive tax relief at the same rate as corporation tax (currently 20.6%). This would apply to donations totalling up to SEK 800,000 (€72,600), with a minimum eligible donation of SEK 2,000 (€182).

This offers larger benefits than the proposal of a recent Government inquiry, which suggested a 25% tax reduction on gifts up to SEK 200,000, and then 5% on further donations up to SEK 400,000.

However, the budget’s proposal only relates to donations to nonprofit organisations carrying out social assistance activities, or promoting scientific research.

Charlotte Rydh, secretary general of Giva Sverige, welcomes the more generous deduction rate, but is concerned about its narrow scope. She says:

“The government’s proposal in the budget bill is a welcome step that can make a real difference for parts of the non-profit sector. The raised ceiling and the simplified model send a clear signal that donations from companies are an important part of financing the activities of non-profit organizations for a democratic and robust society.

“At the same time, we see that the proposal still limits the potential by continuing to exclude more purposes from the tax reduction.”

However, Giva Sverige notes that a current investigation by the Government into the financing of the cultural sector suggests that there is scope for more charitable purposes to be added into the new tax reduction.

As in many other countries, Sweden’s charity sector is facing financial challenges. As reported in Fundraising Europe previously, Giva Sverige found in a summer survey that a fifth of Swedish nonprofits had to reduce their operations during the first half of the year. Earlier in the year, another report found that the number of Swedes giving money to charity (53%) was recovering, but still significantly below where it was 10 years ago (63%).

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Of that €9.2bn, 58% came from members of the public and the remainder from businesses – figures practically unchanged since the 59%/41% split seen in the previous Panorama, which covered 2019.

The report is primarily based on tax declaration data from the country’s Direction Générale des Finances Publiques (DGFiP).

It shows that while public giving has grown by an annual average of 6% since 2006, corporate giving has increased by an average of 9% annually, with total gifts growing from €969m in 2010 to €2.65bn in 2022.

Corporate generosity has shown particular growth from SMEs and very small enterprises (VSEs) – their gifts accounted for 15% of all business income at the start of last decade, rising to 35% in the most recent survey. VSEs now make up 62% of those making gifts: an increase from 47% in 2010.

• SMEs are defined as those with less than 250 people; turnover of less than €50m; or balance sheet of less than €43m.
• VSEs are those with fewer than 10 employees; and an annual turnover of balance sheet of less than €2m.

Overall, 142,500 firms – or 6% of all those liable to pay corporate tax in the country gave money to charity last year. In 2010, the figures were 27,600 firms, representing 2% of businesses.

A total of 5.5m households (as defined by the tax authorities) made a donation to charity in 2022 – equating to 14% of all French households, a figure that had been 13% in the years 2019-2021, but was 15% prior to that.

The report finds that more regular donors are the most likely to give larger amounts – the average amount given by households declaring a donation in only one of the last 11 years was €265, while for those declaring donations every year, it was €834.

It also shows that 51% of total public donations came from the 10% of wealthiest households, while 53% came from households whose principal taxpayer was 60 years or older.

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But the survey of 208 sector leaders, Utmaningar och möjligheter för civilsamhället (Challenges and opportunities for civil society), does highlight growing optimism for corporate fundraising as an income stream.

One in six (17%) of respondents said they felt negative about the future of their organisation in the next three to five years, up from 4% in the first survey in 2018. Meanwhile, only 14% feel ‘very positive’, down from 32% in 2018 – while 47% said they felt positive, versus 52% six years ago.

Asked about the sector as a whole, 35% currently expect it to decrease in size in the next half decade (versus 12% in 2018), and just 21% expect growth (39% in 2018).

Corporate fundraising hopes

Income from companies – whether through collaborations, sponsorships or other relationships – was the fundraising stream seen as providing the best future opportunities by leaders in the survey.

Nearly half (48%) said they expected more corporate income for their organisation in the next three to five years, a slightly higher figure than the 47% seeing growth in public fundraising, while 21% expected increased public sector income.

However, respondents were more optimistic regarding their own specific organisation than they were for the sector as a whole – just 36% said the next three to five years would see increase corporate income across the charity sector, with the figure dropped to 31% to public fundraising, and to just 8% for public sector income.

The survey also asked for charity leaders’ view of what companies expect when collaborating. The three most common answers were:

• Strengthened brand: 89%
• Contribute to positive social developments: 85%
• Positive media attention: 63%

Other outcomes included employee engagement (52%); access to new markets or customers (36%) and employee volunteering (35%).

In response to another question, charity leaders said that their ability to partner with the private sector was improving. This year, 55% said they felt they were good at delivering concrete benefits to business partners (up from 49% in 2023); and 48% said that they were good at using their corporate partners’ skills and networks to achieve greater impact (42% in 2023).

Charlotte Rydh, Secretary General of Giva Sverige, comments:

“It is clear that civil society is facing a turbulent time. Despite the challenges, there is a strength and willingness to explore other sources of funding, something that is crucial to maintaining a strong and viable civil society.”

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But charities could still use these as an opportunity to build what might become a more positive relationship, according to How do charities raise funds from companies? by Hogeschool Gent, better known as HOGENT.

That report, as well as another entitled How Generous are Flemish and Brussels SMEs?, has been published to support the growing number of charities wishing to develop corporate income streams. Both are available on the HOGENT website.

The business generosity study shows that around four out of five SMEs in Flanders and Brussels support charities. These are generally based around donations, with only one in 12 having an employee volunteering programme.

The How do charities raise funds report recommends that charities invest time into understanding the corporate sector, undertake targeted prospecting, and communicate clearly what it is that they offer, in order to achieve corporate fundraising success.

One area addressed in it is non-cash donations, including of furniture or other equipment. The 46 fundraisers who contributed to the report were split in their opinions of these gifts – while some found them useful, others said it felt like they were being given surplus goods, meaning the corporate is effectively passing a logistical problem on to the charity.

One fundraiser for an international development organisation says in the report:

“We regularly encounter companies trying to dump all kinds of overstock or things that are just about to expire, suggesting: ‘yes, you can do something with this in Africa, so that we can get rid of it’. That is often with good intentions, but we have a lot of resistance to this because that is colonial thinking: ‘everything that we no longer find good enough here will still be okay in Africa.’”

The report goes on to say that some fundraisers have at times accepted a gift that was not particularly useful, in order to build a relationship with the donor.

Ethical issues

The report also considers ethical issues with corporate relationships – saying that ethical policies generally include a list of industries from whom a charity would not accept donations.

It adds that while fundraisers know that they need to have such policies, many admit that it is difficult to know how to start building one, and can be tricky to put them into practice given the grey areas that could exist.

One fundraiser told researchers that it had twice been offered donations from a tobacco company, but with no strings attached. They commented:

“We were not asked to make it public. We accepted the donations – but if the company had wanted their logo to be displayed on our vans, then [we would have said] no.”

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Corporate giving has long been established as playing an important role within the charity sector, by connecting both public and private businesses and their employees with causes that they care about or with which they can have a direct positive impact. This can take many different forms, from voluntary cash donations, matched employee fundraising, volunteering, payroll giving and other initiatives including in-kind donations of skills, time and resources.

In some countries though, corporate support has fallen in recent years. In the UK for example, while organizations no longer need to declare their charitable donations due to changes to the Companies Act in 2013, ESG reporting requirements mean many continue to do so. The latest CAF Giving Report shows that in 2022, FTSE100 companies donated £1.85bn to charitable organizations. This equates to just 0.8% of their annual pre-tax profits; down from 2.5% in 2016, and a real-terms decline of 17%. Despite this, 39% of charities surveyed in the 2024 Enthuse Charity Pulse Report still anticipate growth in corporate giving overall in 2024; making corporate giving a highly competitive area within the charity sector.

So how can nonprofits ensure they’re in the best possible position to win a company’s support? Here are some tips.

Understand what’s in it for them

Since the pandemic, I’ve started to see more of a shift within corporate giving towards longer-term strategic partnerships that are mutually beneficial for both charities and businesses to help create social change. A quote from one of my corporate partners, NOT in the financial sector, always sticks in my mind: “we’re not a bank”. With so many charitable organizations to choose from, companies are more able than ever to be selective in the charity (or charities) they choose to support, to maximise their own benefit to create a two-way partnership.

During the research and application process, it’s vital that you ask yourself what’s in it for them? What can they get from your charity that is different from others? And don’t be afraid to ask the question of what they want from your charity. Is it to support their ESG goals? Help with staff retention? Volunteering opportunities? Bespoke events? Skills and learning opportunities? What can your charity bring to their business? And most importantly, can you actually deliver what they want? Understanding this is vital to success.

Air Ambulances UK supports the lifesaving work of the 21 air ambulance charities across the UK

Personalise your approach

Ultimately, people donate to people. As a sector, we know the importance of building relationships with our donors, and people within corporations are no different. Understanding the people within your target company at all levels, not just the senior leadership, will help to form a more personalised pitch that is compelling across the entire business. In such a competitive arena, a blanket approach to your target corporate list simply won’t work. You need to understand each company individually as what works for one pitch, is highly unlikely to work for another.

Try contact mapping

I always suggest doing a quick contact mapping exercise across your charity at all levels (if possible) before you approach an organization; particularly for larger companies. You would be amazed at how often someone knows someone (or knows someone else who does) within your target corporate. Even a quick LinkedIn search for any first or second level connections is always useful.

Be patient

Corporate partnerships take time. Lots of time. And often, multiple attempts before you begin to see even the smallest amounts of success. Patience is key when it comes to corporate giving!

Last year we were successful at winning a partnership with an organization that we had originally begun talking to back in 2019. We were lucky enough to have the opportunity to get to the final pitch in 2020 against two other charities… but we weren’t successful. We were so close, and yet so far.

If you fail, ask for feedback

But this is where our opportunity began. We asked for feedback. Full and honest feedback – knowing it may not all be pretty! The fact that we got to the final two was proof enough that our cause was one that resonated with them and so we were over the first hurdle. But what was it that the winning charity offered that was more relevant to them? What areas did they think we needed to consider more carefully when talking with them? And importantly, did our pitch effectively convey everything that we hoped that it would? We had lots of positive feedback from the corporate, and some areas they suggested that we look at. And so we did…!

Don’t be put off by failure

Despite being unsuccessful, we kept communication with them open to continue to build those relationships and to make sure that if there was a future opportunity to pitch, we would get the chance once again. We made sure to see what they were publicly celebrating with their new charity partner and noted what activities their staff were getting engaged in. Although we didn’t yet have the partnership, we were utilizing the time to learn more about who the people in the organization were and what was important to their business from their charity partner. When the time came to apply, and then pitch, again, we knew that we were able to put together a strong pitch that was relevant to them, based on all our learning over the past few years. All that effort paid off, and we won the partnership!

Give it your all

Corporate giving is a tough space to be in, but it is also hugely rewarding. Don’t be put off by failure. You have to remember that it’s not personal, to you, your charity or the cause that you support. Sometimes it’s just not the right time and often it can take multiple applications to the same corporate organization before you even get shortlisted!  It’s vital that you learn from your unsuccessful pitches and don’t be afraid to ask for feedback. Be honest with yourself about what you can offer that corporate, and can you actually deliver what it is that they need? When the time comes to pitch, make sure your message is clear and concise. Prepare, practice, rehearse, and give it your all.

Carla Yarrow

About Carla Yarrow

Carla Yarrow is corporate partnerships manager for Air Ambulances UK (AAUK); a national charity supporting the work of the UK’s 21 air ambulance charities. She is passionate about working closely with AAUK’s national corporate supporters to maximise the impact of corporate partnerships and, together, help improve patient outcomes and save even more lives. Prior to working in the charity sector, she spent 11 years working in the hospitality industry looking after charity partnerships for one of the UK’s leading hotel management groups. Carla is also a committee member of the Chartered Institute of Fundraising’s Payroll Giving special interest group.

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.

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The report finds that total giving to Giva Sverige members in 2023 was SEK 11.5bn. That followed 2022’s record total of SEK 13.1bn, with the rise mainly due to support for Ukraine in the wake of its invasion by Russia.

Long-term trend for public donations remains positive

Giva Sverige says that the long-term trend is still positive – in 2021, total giving was SEK 9.7bn ­– although charities are reliant on a smaller number of donors who give larger amounts. In 2016, two-thirds of Swedish adults donated money to charity, while in 2023 it was just 50%.

Drop in corporate giving

Giving by corporates in 2023 dropped by 37% from SEK 1.8bn to SEK 1.1bn, meaning it returned to essentially the same level it has been for most of the past decade.

The number of companies giving money also appears to have decreased from around 33,000 to closer to 25,000 – although Giva Sverige says that these numbers are not definitive due to the way in which some members record donations.

This drop will have been a surprise to charities, Giva Sverige says ­– in late 2022, only 22% of its members said they expected corporation donations to decrease, while 41% assumed they would rise. This meant there had been much more optimism towards corporate giving than there had been around public donations, foundations and legacy income.

Legacy income rises

Meanwhile, legacy income increased by 15% to a total of SEK 1.9bn in 2023. As in previous years, research and animal charities were the biggest beneficiaries of legacies.

Most popular charities 

Overall, the charity receiving the most donations in 2023 was cancer charity Cancerfonden (SEK 1bn, up from SEK 975m); followed by Läkare Utan Gränser (Doctors Without Borders), which significantly increased its income from SEK 651m to SEK 951m.

Third-placed UNICEF Sverige saw its donations drop to half the 2022 level, at SEK 669m, which Swedish giving to the UN High Commissioner for Refugees dropped even more dramatically, from SEK 1.8m to SEK 587m.

Charlotte Rydh, general secretary of Giva Sverige, comments:

“There was great uncertainty ahead of 2023. Inflation with subsequent interest rate increases has meant that households’ ability to consume has decreased significantly. With hindsight, we can see that the public’s gifts are relatively strong given the conditions.

“Giving to support Ukraine has continued to be large, but nowhere near the levels achieved in 2022.”

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In total, Dutch companies gave €2.2 billion to good causes in 2020 – up from €1.9 billion 2018.

In addition, households gave €2.1 billion in 2020 – 300 million euros less than in 2018. Charities also received more donations from endowed foundations and from bequests.

According to the report, the rise in corporate giving was striking because 45% of companies in the Netherlands saw less profit, dealt with temporary closures and/or had to let go some of their staff due to the Covid-19 pandemic. The report shows that in fact, companies affected by the pandemic did not donate or sponsor less compared to those who were not affected by the crisis.

2020 saw companies give €395 million to health-related charitable causes, and a similar amount – €387 million ­­– to sports and recreation. These causes were also the most popular choices for corporate sponsorship and giving.

The drop in donations from households in 2020 was mainly due to smaller households supporting a smaller number of charities, the report says. This has been a trend since 2011, but was accelerated by the corona measures in 2020. Contributing to this, charitable organisations were also unable to hold as many fundraising campaigns due to the Covid-19 measurements. Among donating households, the total amount of donations has remained about the same since 2018. The percentage of households that have supported charities online has also hardly changed.

Volunteer work

The study also looked at volunteering. It found that due to the corona measures, this decreased in 2020 with 44% of the population engaged in volunteer work, compared to 49% in 2018. The nature of volunteering also changed during the pandemic, with more online volunteers. However, the increase in online volunteering was smaller than the decrease seen in volunteering in person. In particular, the number of volunteers for sports clubs, schools, and in care or nursing decreased, while there were more volunteers in district and neighbourhood associations.

Since 1995, the Giving in the Netherlands survey has mapped the giving behaviour of households, individuals, funds, companies and charity lotteries every two years.

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