Christmas Season is Donation Season. But did you know that companies led by women in Germany are more likely to donate than those with male CEOs. This finding comes from a study conducted by the data journalists at DataPulse Research who analyzed the donation behavior of over 4,000 SMEs in Germany, leveraging internal data from the accounting software BuchhaltungsButler. Their analysis uncovered intriguing gender-specific differences that shed new light on leadership and social responsibility.
You might already be aware of the phenomenon that women tend to donate more than men. This is highlighted by studies like the German Donation Monitor and analyses by the Institute for German Economy. A common explanation is that women, due to socialization, often have a stronger sensitivity toward "caring" and are more inclined to donate to causes like healthcare and education out of empathy for children. However, the question of whether female-led companies donate more than male-led ones has been less explored, prompting DataPulse to investigate further.
Defying Stereotypes: Germany Is Generous
Germany is often associated with fiscal austerity and frugality, epitomized by the thrifty Swabians. But the data tells a different story. In 2023, Germany ranked as the third-largest economy in the world and the second-largest donor of development aid after the United States.
The generosity of German companies and individuals is remarkable. In 2019, the German Fundraising Association estimated that annual donations from Germany totaled nearly €34 billion. This amount comprises approximately €12 billion from private donations, €12.4 billion from church taxes, and €9.5 billion from corporate donations – substantial sums indeed!
SMEs play a significant role here. With around 3 million small and medium-sized enterprises in Germany, accounting for more than half of all jobs, they are rightly considered the backbone of the German economy.
The Focus: SMEs
In collaboration with DataPulse Research, BuchhaltungsButler analyzed anonymized data from over 4,000 of its customers. These companies are SMEs, with 99% headquartered in Germany. Male CEOs and founders represented 80% of the dataset. The donation data examined was from 2022 and 2023.
The Result: Female CEOs Donate More Often and More Generously
The data shows that in 2023, around 14% of female CEOs in the sample made donations, compared to only 10% of their male counterparts. This trend mirrors the results from the previous year: in 2022, 13% of female CEOs donated, compared to 9% of male CEOs.
The typical donation amount, measured by the median annual donation, was approximately €250 for both genders in 2022. However, in 2023, as Germany’s GDP declined by 0.3%, donations from male CEOs dropped by 20%, while those from female CEOs remained stable.
The Impact: A 4 Percentage Point Difference Makes a Real Difference
The findings reveal that women’s generally higher willingness to donate is also reflected in SME leadership. The share of female-led companies making donations in 2022 and 2023 was 4 percentage points higher than male-led companies. Extrapolated to Germany’s total SME population, this 4-point difference translates to millions more (or fewer) donations annually—assuming the sample is representative of all SMEs in Germany.
A simple example calculation illustrates the scale: If 14% of all German SMEs donate €250 annually, the total is €105 million. At 10%, the total is €75 million. A “female” willingness to donate results in an additional €30 million per year. “There are countless reasons why German companies should bring more women into leadership. Millions or even billions more in charitable donations is one of them,” concludes DataPulse.
Anke Dembowski is a financial journalist and author of various investment fund-related and other financial books. She is also a co-founder of the "Fondsfrauen" network.