Chapter 39: Business Sector Fundraising

This chapter focuses on fundraising from the business sector, an essential activity within a nonprofit’s overall fundraising plan. Corporate charitable giving gained traction in the twentieth century as federal laws and court rulings provided guidelines and regulations for private sector philanthropy. Businesses typically donate about one percent of their pre-tax profits resulting in about 5 percent of the charitable support reported in Giving USA. Nearly two-thirds of corporate charitable giving is devoted to education; health and social services; and community and economic development. Forms of charitable giving from private companies include cash and in-kind gifts, cause marketing campaigns, check-out charity initiatives, and sponsorships. Businesses’ philanthropic support can be understood through several theories described in the chapter – corporate productivity, ethical / altruistic, political, and stakeholder – that explain why and how they give. Implications for raising charitable support from the private sector are included at the end of the chapter and organized around stages of the fundraising cycle.