Key Insights
88% of leaders say their impact strategies are future-proofing their business
Corporate purpose is becoming more strategic, business-aligned and outcomes-oriented.
Corporate social impact is maturing as it becomes an enterprise-wide endeavor
Heightened pressure to prove ROI, increased stakeholder collaboration across business functions and enhanced legal, compliance and risk management are reshaping CSR leader roles.
Impact leaders are attempting to strike a balance
There is a growing gap between what leaders expect of their companies and what the moment is calling for – that tension is putting CSR teams at risk.
Leaders are being called to meet the moment
2025 marks a defining moment for corporate purpose. The majority of companies significantly shifted their corporate purpose strategies in the past year, responding to rising scrutiny, regulatory shifts and employee activism. And after five years of rapidly expanding their investments — driven by the global pandemic, social and racial justice movements and major changes in workplace dynamics with everything from the great resignation and the rise of hybrid workplaces to the most recent news of the 10-year low on employee engagement — companies’ approaches to purpose and impact are stabilizing. In fact, 88% of leaders say their impact strategies are future-proofing their business when it comes to talent acquisition and retention, customers and regulatory readiness. Social and environmental initiatives are converging, cross-functional collaboration is increasing and budgets are growing to support a more integrated business-driven approach.
But this also means increased complexity, heavier stakeholder management, the need for operational excellence and a focus on ROI. This is not just “feel-good” work anymore. Through it all, one thing remains constant: the expectation that companies will play a key role in driving societal change. As external pressures mount, businesses face a critical choice: continue reacting to the ever-changing winds of political and social sentiment, or commit to purpose as a core strategy that helps to build a more resilient and sustainable business — and society.
We’re in a corporate purpose shakeup
Who CSR leaders report to
Percentage of companies reporting an increase in consultation and required alignment with cross-functional departments.
Median and average CSR team sizes
There is an alarming trend in this year’s data that suggests CSR leaders are at risk. With over half considering changing their jobs in the next year, this now well-integrated, enterprise-wide work is in jeopardy without appropriate leadership, resourcing and cross-company support. The fact that 26% of respondents in large enterprises express a lack of confidence in executive leadership's ability to make sound decisions on challenging issues highlights a significant trust gap emerging in this space.
Heightened retention and burnout risk
The time for leaders to take action is now
Both businesses and nonprofits are being challenged on a daily basis in the environment that this social moment presents. The work of impact professionals is becoming increasingly complex as it touches more aspects of business and as impact requires greater sophistication and cross-functional collaboration to manage as a value driver. The confluence of recent events – especially in the U.S. – has created a shift from purely purpose-driven work to work that comes with heightened risk, regulation and pressure.
Leadership during this time looks a little bit different: it’s nimble and adaptive, but it’s also empathetic and creative. Most of all, it’s strategic. Executives must keep the needs of impact teams at the forefront, as they drive long-term value for companies and maintain brand trust all while fostering much-needed social change and equity in communities around the world. The value of this work cannot be understated.
For impact to remain the business lever it's proven itself to be, there are some strategies that executive leaders should implement now:
Resource social impact teams appropriately:
The median team size in a company of 10,000-50,000 employees is just four people. In addition to assessing direct team size, secure cross-functional support to sustain impact programs and more effectively manage ongoing crisis response.
Invest in operational and data roles:
Data and insights professionals and strategic operations roles can proactively create repeatable processes and decision-making matrices to inform investment decisions. They can also optimize programs and strategies to deliver on desired social and business outcomes, as well as help with increasing reporting needs with greater efficiency and consistency.
Upskill impact leaders:
Managing social and environmental impact as a business value driver requires expertise in data interpretation, regulatory compliance, risk-based decision-making, crisis response, nonprofit operations, storytelling, communications and budgeting. Prioritize training and development in these areas.
Top 5 trends in 2025
Corporate caution heightens risk
Leaders want courage, but are choosing caution
Caution creates space for distrust to grow
The bottom-line effect of corporate caution
Companies that overly reduce their communications and public commitments risk eroding trust among both employees and consumers, negatively impacting their bottom line. Target’s rollback on diversity initiatives, for example, resulted in national boycotts and a 57% decrease in stock price as of March 2025. Meanwhile, Costco saw foot traffic up 13 weeks in a row as of late March after holding strong on their DEI promises — even seeing a 9.1% net sales increase over last year in the second quarter.
We are now firmly in an era where consumer and employee activism is not just a social phenomenon but a corporate risk factor to be managed across departments, from impact professionals to communications and legal teams. And, as proven by Costco, this risk factor can be turned into a financial opportunity for companies that choose to act courageously in ways that align to their business strategy and values.
Impact communications are a key lever for maintaining trust
Narratives focused on social impact, however, are emerging as a safe haven in an otherwise risky landscape and those who are more reluctant to share their impact stories risk being perceived less favorably. It’s no surprise that in 2025, corporate communications will become an even more critical partner for CSR teams, with ⅔ of leaders expecting to engage their Communications teams more and almost 30% expecting to engage them a lot more.
Leaders know investing in impact is good for business
Acting on purpose
Employees and consumers hold corporations as the biggest source of hope for improving the world and protecting the planet. But they expect action, not silence. This makes corporate vocality both a risk and an opportunity. Companies that strike the right balance on their purpose communications and commitments will build trust and long-term resilience.
Breakthroughs in measurement and reporting are on the horizon
Reporting burdens persists in spite of good intentions
Measurement and reporting have been the fastest-growing budget line item for two consecutive years, now consuming more than a quarter of impact professionals' time. Nonprofits also invest significantly in this area, often with far fewer resources. Despite acknowledgement of the reporting burden on nonprofits, less than half of large enterprises are reevaluating the way they measure impact.
Recognizing the need for change is a step in the right direction and 63% of companies are committed to the idea of standardization when it comes to measurement. It’s not for lack of interest that this shift hasn’t yet occurred, but a slower evolution speaks to the difficulty of balancing the needs of corporations with the capacity of nonprofits. Measurement is critical to sustaining a budget in high-pressure corporate environments, so streamlining reporting and data is key.
How companies can help reduce nonprofit reporting burdens
Pay nonprofits for reporting:
37% of large enterprises agree that corporations should help nonprofits measure their impact by paying, as do 60% of foundations.
Forego customized reporting:
73% agree they should eliminate customized asks for at least some of their programs.
Skill-share with nonprofits:
80% believe they should support nonprofits in acquiring the skills to measure their impact and more effectively fundraise. 52% of nonprofits rate training or support for measuring and communicating impact as very or extremely valuable.
Acting on purpose
Data, measurement and storytelling are essential – they prove impact, inform decision-making and help communicate business and social value, while also motivating employees to continue to engage. But a more balanced approach is needed — and it can be achieved. Standardizing expectations across the sector, not just within individual companies, has the greatest potential to ease burden while also providing nonprofits with benchmarks that they can measure themselves against.
Grantors are centering the nonprofit experience
Grant budgets are increasing
Corporate granting continues to evolve as companies align impact strategies more closely with business priorities. Over the past few years, strategic granting has re-gained traction, and with it, community investment budgets have grown. But while 38% of foundations, 24% of large enterprises and 19% of CSR departments report likely increases this year, many critical granting areas experienced deceleration in support.
Acceleration is slowing in critical granting areas
Where previous years projected greater acceleration in granting towards critical causes such as BIPOC-led nonprofits, climate justice and humanitarian aid, 2025 data shows an anticipated reduction in the number of companies increasing their commitments to these areas. These shifts raise concerns about long-term support for systemic social and environmental challenges that are likely to worsen with rollbacks on regulations in some countries.
While companies may be refocusing their impact, deceleration in these areas risks undoing progress and creating instability for nonprofits working on the frontlines of impacted communities — as well as negatively affecting business in the long run.
Investment in nonprofit resilience is on the rise
Community improvement and capacity building moved up to 4th position from 9th in one year
One promising trend is the growing emphasis on nonprofit capacity-building. Grant-based funding for community improvement and capacity-building moved from 9th to 4th place in a single year, signaling a shift towards strengthening the sector. This focus suggests that while acceleration of direct funding for some social issues has slowed, companies are investing in the long-term sustainability of communities and the sector as a whole.
The grants made in this area are focused on providing resources for community-focused organizations, nonprofits helping to launch social innovations or those offering financial, administrative and strategic support for social programs. This is undoubtedly going to help improve communities at the local level. More importantly, providing resources for infrastructure, leadership development and operational efficiency can help organizations navigate uncertainty and enhance resilience.
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CSR teams are prioritizing AI more than foundations are
As a way to improve the grantee experience, both foundations and CSR teams are working to streamline reporting and grant application processes, but their approaches differ. While foundations are prioritizing direct communication with grantees, CSR teams are leaning into AI-driven efficiencies to reduce administrative burdens and streamline work.
Nonprofits need corporate support on AI
As corporations advance their AI capabilities, they have a unique opportunity to help bridge the AI gap for nonprofits. Offering technical expertise, funding AI-driven tools and skill-sharing with nonprofit partners could help those organizations keep pace, while mitigating some of the risks associated with AI.
Recent Benevity nonprofit survey data reveals that ⅓ of nonprofits say they have implemented AI to some degree. When asked about their sentiment on the use of AI, nonprofits made it clear: They see the value in efficiency and writing support as practical time-saving tools, but their top concern is related to loss of human connection. They do not believe AI can capture the emotional power of storytelling or local context where their work is happening, which is critical in helping funders understand the impact of their work. Concerns around bias and equity, especially from nonprofits focused on inclusion and grassroots initiatives, also surfaced.
As corporate leaders integrate more AI into their processes, it’s worth noting that AI is seen more positively when it is used to support, rather than make decisions or replace human judgement. Grantmakers should be aware of the emotional and ethical concerns of nonprofits when integrating AI into programs, as nearly ⅓ of nonprofits highlighted issues around fairness, accountability and dehumanization when it comes to AI.
Acting on purpose
While supporting individual nonprofit partners remains essential, the corporate sector must take a broader view — one that prioritizes the long-term strength of the nonprofit ecosystem, especially in light of funding decreases from the federal government in the U.S., for example. Now is the time for companies to augment their strategies from funding specific projects to also coalescing around a stronger, more sustainable social sector.
Volunteering builds business resilience
Companies have high expectations for volunteering
Primary reason for volunteering investment
It’s good news for nonprofits, too:
Sentiment on Volunteer Acts of Kindness is shifting
While Volunteer Acts of Kindness (VAOK) held steady since the pandemic when they became a key engagement strategy, 2024 data shows that might be changing. More than a third of large enterprises are scaling back VAOK, though 28% of volunteers only engage in Volunteer Acts of Kindness, so scaling back these options could lead to a decline in overall participation rates.
82% of Benevity clients allow employees to track VAOK today, and 91% of smaller enterprises embrace a broader definition of volunteering, but large enterprises are narrowing their definitions. This could be because 32% of large enterprises say they are focused on volunteering that counts for regulatory reporting, but that type of volunteering shouldn’t come at the cost of volunteering that connects people with purpose — personal or business. Both are needed to protect participation.
In the coming year, companies will sharpen focus on four areas
Acting on purpose
Volunteering is one of very few proven levers for building business resilience and employee well-being. However, it’s also one of the areas that requires a significant amount of investment in resources to meet the diverse needs of large employee populations, while managing the value and impact for nonprofits.
Employee Resource Groups (ERGs) are a source of trust amid peak DEI polarization
Investment in DEI is changing shape
ERGs are a trusted source of information
Most companies commit to equitable and inclusive workplaces because it drives positive business outcomes. Even amid political, legislative and societal challenges that have put DEI under the microscope and in the public eye, ERGs continue to be seen and resourced as a critical pillar of corporate culture strategies. In a time of declining trust in institutions, both employees and leaders continue to view ERGs as trusted sources for information, connection, representation and insight.
ERGs play a more prominent role in smaller enterprises
ERGs are expanding across organizations of all sizes, but smaller enterprises show the highest levels of participation and engagement.
According to Maceo Owens, Chief ERG Program Developer of The ERG Movement, “smaller companies are uniquely positioned to build strong internal cultures because they’re less bogged down by red tape. ERGs offer a scalable way to amplify that culture — especially when structured well. When done right, they function as volunteer-led community teams that drive internal engagement and connection in a way centralized People teams often can’t. That kind of grassroots belonging can give smaller enterprises a competitive edge in both retention and recruitment.”
Acting on purpose
Most companies continue to invest in the important work of building inclusive cultures that allow everyone equal opportunities to thrive. ERGs offer a powerful and authentic way to sustain inclusion efforts and strengthen business resilience. Companies that actively integrate ERGs into strategy, culture and decision-making will foster trust, engagement and a more inclusive workplace.
For impact leaders and executives alike, this is a defining moment for corporate purpose — and for business. In fact, research from CECP says companies with a corporate purpose had revenue 58% higher than those without a corporate purpose. There’s no doubt that purpose work is more complex than ever, but its potential to strengthen businesses, engage employees and create lasting community impact has never been greater.
For executives, investing in impact isn’t just about doing the right thing — it’s about building a resilient, future-proof business. Corporate purpose has a critical role to play in building trust in a world of misinformation, polarization and crisis. For impact leaders, the challenge is also an opportunity: to shape the future of corporate purpose, align social strategies with business priorities and build programs that deliver measurable value across the organization — while creating a better world.
Now is the time to lead — with conviction, commitment and a shared vision for a more resilient ecosystem.
Methodology
Between December 12, 2024, and January 12, 2025, an online survey of corporate impact professionals was conducted to gather insights into attitudes, beliefs and perceptions across key areas of CSR, social impact and purpose-driven business. This year, responses were collected from more than 500 respondents including 201 Benevity clients and 324 individuals from a general population panel, representing CSR and purpose professionals from a range of company sizes, industries and regions.
While 61% of Benevity clients in the sample work at organizations with more than 5,000 employees, only 32% of panel respondents do. The panel data therefore reflects a different segment of companies, specifically one that skews smaller and may operate with different structures or resources than larger enterprises.
In contrast, the client group more closely aligns with the profile of large enterprise organizations. Benevity’s platform is widely adopted by global brands with complex CSR and granting programs, and as a result, the client sample reliably reflects the priorities, practices and realities of large, multinational companies. Nearly two-thirds of client companies report annual revenues over $1 billion, compared to just one-quarter of panel respondents. Clients are also more than twice as likely to be publicly traded, suggesting greater alignment with the governance standards, budget scrutiny and reporting expectations typical of large-scale corporations. This client data was used where “large enterprises” are referred to in the report.
These distinctions reinforce the value of the client data as a benchmark for large enterprise trends in corporate purpose. Comparisons across segments or shifts over time within the client base offer meaningful insight into how purpose is evolving inside the world’s leading companies.
This survey was conducted online from March 26 to April 2, 2025. It was shared broadly through Benevity’s nonprofit newsletter, reaching 192,117 nonprofit organizations across the United States, Canada, the United Kingdom, Australia and India. A total of 201 nonprofits participated in the survey in approximate proportions to the newsletter recipient distribution.
While the sample is not randomized or fully representative, it reflects a healthy mix of organization sizes, staffing models and areas of focus. As a result, it offers a balanced view of the nonprofit landscape in these regions.
Benevity, a certified B Corporation, is the leading global provider of social impact software, providing the only integrated suite of community investment and employee, customer and nonprofit engagement solutions. Benevity provides a robust, all-in-one SaaS platform designed to simplify and scale CSR and social impact programs. The platform unifies giving, volunteering, grants management and employee mobilization - empowering companies to connect purpose with measurable business results. Benevity has processed more than $18.5 billion in donations and 99 million hours of volunteering time to support 513,000 nonprofits worldwide. The company’s solutions have also facilitated 1.5 million acts of goodness and managed grants worth $18 billion. For more information, visit benevity.com.
