Corporate Philanthropy
Businesses support cities and communities through programs: grants to NPOs, corporate volunteering, paid volunteer days for employees, mentoring programs.
«A business that thinks only of profit is a bad business» — Henry Ford.
What you gain and what changes
- Corporate philanthropy strengthens a company's reputation more than any advertising — especially in the ESG era.
- Volunteering programs increase employee engagement: they work for a company that does good.
- Systemic partnerships with NPOs give businesses a deep understanding of social problems in their region.
Step-by-step plan
- 1
Document the policy
The Corporate Philanthropy Policy is approved by the board of directors. It includes goals, budget (% of profit or a fixed amount), geography, directions, prohibitions (e.g., political parties).
What to check- Policy approved by the board/board of directors
- Responsible person appointed (CSR director)
- Annual budget determined
Documents- Charitable Activities Policy
- Board of Directors Resolution
- 2
Choose 2-3 directions and partners
Don't spread yourself thin. It's better to support 2-3 vetted funds in one or two regions than many unfocused ones. Sign long-term agreements (3-5 years) — this allows partners to plan.
What to check- Partners passed due diligence
- Framework agreements signed
- Program KPIs approved
Documents- Strategic Partnership Agreements
- Due Diligence Reports
- 3
Launch corporate volunteering
1-3 paid days a year for employees for volunteering is a global standard. The practice of companies matching employees' personal donations to NPO partners is also widespread.
What to check- Volunteer days stipulated in employment contract
- Corporate matching program launched
- Employees informed
Documents- Volunteer Days Policy
- Corporate Matching Program
- 4
Report publicly
Once a year — a non-financial report according to GRI or RSPP standards. Disclose amounts, partners, results. Transparency is the main defense against accusations of «greenwashing».
What to check- Report published on the company website
- Underwent independent audit (for large companies)
- Included in the annual report to shareholders
Documents- Non-financial annual report
- Independent auditor's conclusion
Flow diagram
A visual map of how your support turns into real outcomes and who is responsible for each step.
Legal basis
- Tax Code of the Russian FederationArt. 265 p. 1 subp. 19.6
Charitable expenses according to the Government's list reduce income tax, but not more than 1% of revenue.
- Federal Law-275Corporate Endowment
A company can create its own endowment fund for systemic long-term support.
- RSPP StandardSocial Charter of Russian Business
Voluntary, but widely adopted standard for disclosing CSR information.
- Federal Law-208On Joint-Stock Companies
Decisions on large charitable expenditures require approval by the board of directors or a general meeting of shareholders.
Beware of scammers
- Check the beneficiaries of NPO partners (for any affiliation).
- Conduct regular audits of projects, not limited to recipient reports.
- Avoid greenwashing — real actions are more important than communication about them.
Stories that inspire
Systemic grants to social initiatives of residents of Norilsk and Taimyr — over 1000 projects since 2014.
A corporate fund to support projects in culture, education, and sports — an example of how systemic CSR becomes a separate institution.