There’s a hidden cost to giving and receiving. The extent to which is not always fully recognised. Yet awareness of these costs can dramatically improve operational efficiencies for both charities and companies alike, making donations more impactful and relationships more rewarding.
For companies, researching and connecting to charities or projects that align to their core values, takes time. Then there’s due diligence processes, understanding impact, capturing media, reporting and so on. For charities, complex and lengthy application processes and the subsequent servicing of donors can sometimes be so time intensive it net outweighs the value of the donation itself.
BizGive’s data and research suggests some of the UK’s largest companies spend as much as a fifth to 25 percent of their total annual donation budgets, simply on administration. For small and mid-sized companies this can reach as much as one-third. External research shows nearly half (43 percent) of UK Corporate Social Responsibility Managers are restricted in where and how they give, because of the administrative burden on their teams.
What are the hidden costs?
Reducing the OpEx of giving and receiving has never been so important, as charities and companies are under increasing financial strain. Greasing the cogs of a society and economy emerging from an unprecedented period of stasis, means working together to make operations more efficient and donations more impactful. Some of the big time sinks BizGive has identified include:
- Due Diligence: The single, most common problem we hear. Large companies perform rigorous checks that can take as long as 8 hours per project.
- Applications: Wading through thousands of applications, many of which don’t meet basic company criteria, is enormously time-consuming for companies. For charities, it’s researching funders and filling out applications, which is often repetitive.
- Media and Content: Content is often unstructured, not aligned to expectations and shared via email. It can get lost and requires re-working before CSR and marketing teams can use it.
- Social Impact: There’s no consistent and easy way to report on project impact.
How to Reduce OpEx
Among these challenges are opportunities. Not only to boost efficiencies, but also to realise the full potential of charity giving. Great stories are being lost and smaller charities are missing out on funds, simply because the process of engagement can be so tough.
Over the coming months, as the immediate impact of the pandemic wanes, companies and charities will need to work together to restore the economy and society. They’re not separate problems, they are one. Without a healthy society, businesses cannot thrive and without a healthy economy, charities struggle.
BizGive’s approach is to bring you together in one platform, using modern technology to automate and digitise many manual processes. We’re entirely focussed on integrating new features that solve the challenges we consistently hear from our users.
BizGive is a technology start-up with a mission to support organisations in strengthening their impact by cutting the costs of giving, receiving and to return value. Built using the latest technology, BizGive’s flagship Giving ManagerTM platform is fast, modern and easy to use. The Giving ManagerTM is the culmination of more than 2 years of primary research with UK and international companies and charities to identify sector challenges and opportunities.
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