When is a corporate foundation right for your business, & when might alternatives be more suitable? Elizabeth Jones, Emma James & Sarah Gill set out the benefits & challenges
- Corporate foundations are increasingly popular vehicles for businesses to support their ESG commitments.
- Foundations require careful structuring and planning to ensure they comply with complex regulatory and legal requirements.
- Before committing to a foundation, businesses should consider whether alternatives might offer comparable benefits but with a lower risk profile.
Last year, grant-making by corporate foundations grew by 17% from 2021, according to the Foundation Giving Trends report from the Association of Charitable Foundations. As this marked increase shows, corporate foundations are growing in popularity as vehicles for businesses looking to support meaningful action on issues that align with their values, such as climate change, achieving the UN’s sustainable development goals, and work on diversity, equality, and inclusion.
But why establish a corporate foundation rather than pursue an alternative route, such as becoming a B Corp or partnering with a well-known
