The world demanded more from businesses over the past three years. Both employees and consumers expected companies to step up and take a stand—and to use their power and platform for good. In many cases, corporations delivered on these expectations by providing assistance to communities impacted by COVID-19, being vocal on racial inequity and social justice, and actively supporting people affected by natural, humanitarian, and political disasters.

In 2023, rising inflation and sky-high interest rates have resulted in a global economic downturn that has forced many businesses to cut costs. But the need for corporate giving has only increased. Local nonprofits and food banks are struggling to keep pace with growing demand for basic services, and volunteer shortages continue to impact efforts to support nonprofits.

Despite this challenging context—or more precisely, because of it—businesses aren’t slowing their efforts to serve as a force for good. But they’re doing it more quietly.

Call it the rise of “quiet giving.”

Why are we seeing a shift?  

Quiet giving is a more subtle approach to corporate philanthropy—but it’s no less powerful. At its core, quiet giving is about businesses moving away from flashy, external-facing corporate statements centered on newsworthy issues and toward greater prioritization of investments in their workforces and local communities.

Compassionate business leaders realize that the same economic fears keeping them up at night are impacting their employees on a personal level. Living with economic uncertainty is stressful, and that stress can manifest in various ways, including negatively impacting employees’ productivity, engagement, and sense of overall well-being. Likewise, local nonprofit organizations are feeling the strain of supporting growing needs from their community members at a time when resources are spread thin. Scenarios like these are where quiet giving comes into play.

Quiet giving, which can include investments in employee programs, volunteering, positive actions, and smaller-sized grants to grassroots community organizations, may not be the stuff of media headlines, but it enables corporations to lend their authentic support to initiatives that benefit the people, communities, and organizations closest to them—and in many ways allow their efforts to have an even more pronounced impact.

It’s understandable why corporate leaders rallied to publicly support important national causes over the past few years. Employees and consumers pressured the private sector to speak up, and companies that did so caught the attention of job seekers.

But three years later, we’re in a much different economic and social climate. My company, Benevity, a corporate giving software provider, recently surveyed corporate social responsibility (CSR) leaders on current giving trends. Nine out of 10 CSR leaders said companies should spend more time acting on social justice issues through their own practices and programs rather than making bold statements. Companies are now finding they can have a greater—and more authentic—impact by focusing their efforts close to home.

QUIET GIVING IN PRACTICE

Companies are bringing quiet giving to life by turning the focus inward to prioritize the needs of their own employees as part of their corporate purpose efforts. Some, for example, are organizing company- or team-led volunteering initiatives, doubling down on support for employee resource and affinity groups, and making greater investments in employee learning and development efforts.

The CSR leaders we surveyed forecasted employee climate action programs to be the number one program type to see the largest increase in CSR investments this year, followed by employee learning and social action programs.

This approach not only demonstrates empathy toward workers grappling with a period of stress and uncertainty, but it also contributes to long-term employee engagement and a more positive work culture overall. Consider that over 80% of U.S. professionals agree it’s important to work for a company whose values and culture align with their own. An even larger share of workers (88%) say their job is more fulfilling when they are provided with opportunities to make a positive impact on social and environmental issues.

It’s well documented that giving back and doing good boosts overall well-being, and when employees are happier, they’re much more likely to stay at their jobs.

By funding and supporting opportunities for employees to connect with their colleagues and their communities, companies are redesigning their corporate philanthropy efforts to create an impact that every worker can experience firsthand.

Quiet giving also extends outward to communities, with companies partnering with and granting funds to locally focussed causes and nonprofits where employees live and work.

For example, a $1,000 grant can make a significant difference to a women’s shelter in a rural setting, whereas the same $1,000 can be a drop in the bucket for a national organization that supports women. Shifting focus to communities where corporations already have established roots enables businesses within those communities to address specific challenges, create positive social impact, and build stronger communities—which is exactly what is needed right now.

As companies and employees navigate the current economic downturn, quiet giving is emerging as a connective force that strengthens community ties inside and outside a company’s walls.

As powerful as it may be, quiet giving is still only one way companies are demonstrating their corporate purpose. We cannot forget the people far away from us who need our support now, just as they always have. To maintain momentum on a global scale, humanitarian aid and support will remain a pillar of every company’s environmental and social investments in concert with giving closer to home.