In today’s purpose-driven business landscape, corporate grantmaking strategy is no longer a side initiative — it’s a strategic lever for creating measurable social impact, reinforcing brand values and strengthening stakeholder trust.
Insights from our recent webinar with Principal Financial, a leader in inclusive global grantmaking, highlight how intentionality, equity and long-term vision enable companies to tackle complex societal challenges while aligning philanthropy with core business objectives.
Gone are the days when corporate giving meant reactive check-writing. Modern corporate grantmaking strategy emphasizes structured processes, deeper nonprofit partnerships, employee engagement and data-informed decision-making. Whether your company is launching its first grant cycle or refining a mature program, the principles of strategic, inclusive and scalable design offer a powerful roadmap for success.
Why corporate grantmaking strategy matters
Stakeholders — from employees and clients to investors and regulators — are increasingly demanding that businesses demonstrate authentic social responsibility. A well-structured grantmaking program does more than fund good causes; it signals that your company is invested in long-term community well-being.
Strategic grantmaking also creates ripple effects that strengthen communities, address inequity and build resilient ecosystems where both businesses and society can thrive. When integrated into a company’s broader environment, social and governance (ESG) or corporate social responsibility (CSR) framework, grantmaking becomes a sustained driver of positive change, not just a transactional act of charity.
To see how this looks in practice, watch highlights from our webinar with Principal Financial, where leaders unpack how they’ve transformed their grantmaking program into a strategic engine for equity, scalability and long-term community partnership.
Core pillars of an effective corporate grantmaking program
1. Structure grant cycles for sustainability and relationship building
One of the most common pitfalls in corporate philanthropy is treating grantmaking as a once-a-year administrative task. Leading organizations instead design intentional grant cycles that balance internal capacity with nonprofit needs, recognizing that authentic partnerships require more than funding.
Some companies use a biannual cycle, awarding multi-year funding (e.g., two-year grants) and dedicating off-years to relationship-building, storytelling and light-touch reporting. This rhythm reduces burnout for both grantors and grantees while cultivating deeper trust.
As Jo Christine Miles, Director, Principal Foundation and Community Relations, Principal Financial, shared in a Benevity webinar:
“Off-years aren’t gaps, they’re opportunities to listen, learn and strengthen partnerships without the pressure of application reviews.”
Explore how companies are using off-year cycles to build more human centered partnerships:
2. Focus on your portfolio with intention
A hallmark of a mature corporate grantmaking strategy is focus. Rather than spreading funds thinly across dozens or hundreds of organizations, top-performing companies make fewer, larger, multi-year investments in high-impact areas.
Principal Financial, for example, streamlined its portfolio from 146 to 90 nonprofits, enabling average multi-year grants of $105,000. These funds were strategically directed toward foundational needs like housing, nutrition, financial literacy and support for small businesses — recognizing that stability in basic necessities creates the conditions for long-term community growth.
The takeaway: use data and community input to identify priority areas, then channel resources where they can drive systemic change.
3. Reduce administrative burdens on nonprofits
Nonprofits spend a significant amount of time navigating complex, inconsistent reporting requirements across funders. A trust-based approach to grantmaking flips this dynamic by minimizing overhead for grantees.
Instead of requesting custom reports, forward-thinking companies accept standard annual reports and supplement them with just a few consistent, mission-aligned questions. This small but powerful shift communicates respect for nonprofit expertise and frees up time for impact.
4. Activate employees as impact partners
Employees are not just beneficiaries of corporate giving, they’re powerful agents of change. When companies integrate grantmaking with employee engagement, through matching gifts, volunteer grants or cause campaigns, they create a culture of shared purpose.
Inviting grantees to participate in internal activations (e.g., lunch-and-learns, skill-based volunteering or storytelling sessions) further deepens connections. Principal Financial encourages nonprofits to “convert employees into long-term donors or volunteers — even if future funding isn’t guaranteed.”
This approach shifts the relationship from transactional to transformational, building a culture of collective impact.
5. Decentralize grantmaking for local impact and global coherence
For multinational companies, an inclusive grantmaking strategy extends decision-making beyond headquarters. By empowering local teams to design and manage grants cycles aligned with their community’s priorities, companies ensure relevance, responsiveness and stronger stakeholder trust. Technology enables this by supporting region-specific grant portals, localized application processes and compliance with local regulations — all within a unified global framework.
At the same time, global grantmaking introduces operational complexities, particularly around currency and tax compliance. Processing grants in a limited stable of currencies (e.g., USD, EUR and INR) streamlines disbursements, while automated tax and legal due diligence, such as validating a nonprofit’s eligibility under local regulations, ensures compliant, risk-managed funding without narrowing the scope of potential grantees.
How technology enables scalable, equitable grantmaking
Executing a modern corporate grantmaking strategy requires more than good intentions, it demands the right technology infrastructure. Purpose-built platforms like Benevity Grants provide the operational backbone for application management, fund disbursement, impact tracking and global compliance.
Automation reduces administrative effort, ensures legal and tax compliance and generates actionable insights, allowing CSR leaders to focus on strategy and relationships.
As Ruby Murphy, Senior Client Success Manager at Benevity put it:
For organizations assessing their maturity, tools like the grants Benevity Impact Index provide benchmarks and tailored recommendations to evolve from ad hoc giving to strategic, data-driven philanthropy.
Key takeaways for building a future-ready grantmaking program
The most impactful corporate grantmaking programs share five common traits:
- Be intentional with timing: Use structured cycles to balance operational efficiency with relationship depth that drives long-term impact.
- Focus your portfolio: Prioritize fewer, larger, multi-year grants aligned with systemic community needs rather than spreading resources too thin.
- Simplify for nonprofits: Reduce reporting burdens and center trust in your partnerships.
- Go global, think local: Empower regional teams to lead locally relevant grantmaking while using technology to ensure compliance and cohesion at scale.
- Engage employees meaningfully: Turn workplace granting programs into bridges between mission and action.
These aren’t just theoretical ideals, they’re practices already delivering results for forward-looking companies reimagining what corporate philanthropy can achieve.
Ready to strengthen your corporate grantmaking strategy?
The most impactful programs share a common DNA: clarity of purpose, equity in design and seamless alignment with business values. Whether you’re just getting started or refining a mature initiative, these practices offer a proven pathway to greater social and business returns.
Watch the full on-demand webinar with Principal Financial to see these principles in action: How Principal Financial Created an Inclusive, Global Granting Program.
Ready to take the next step?
Schedule a demo to see how the Benevity Enterprise Impact Platform can help you build a scalable, inclusive and high-impact corporate grantmaking strategy — one that delivers both community change and internal alignment.
