Corporate Gifting Budget Guide: How Much Should You Spend?

Corporate gifting is an art—and a science. Done right, it strengthens relationships, boosts brand loyalty, and shows appreciation in a way that emails just can’t. But how much should you actually spend on corporate gifts? Go too low, and your gift might feel impersonal. Go too high, and you risk blowing your budget or making recipients uncomfortable.

This guide will help you determine the ideal corporate gifting budget based on industry trends, company size, recipient type, and overall gifting strategy.

Why Is Corporate Gifting Important for Businesses?

Before diving into numbers, let’s talk about why businesses invest in corporate gifting in the first place.

• Employee Engagement – 69% of employees say they’d work harder if they felt better appreciated (Source: Gallup).
• Client Retention – 70% of businesses say gifting helps strengthen relationships with clients and partners (Source: Coresight Research).
• Brand Awareness – Thoughtful gifts keep your brand top-of-mind in a meaningful way.

How Much Do Companies Typically Spend on Corporate Gifting?

Corporate gifting budgets can vary widely, but here’s a breakdown of average spending based on recent data:

• Small Businesses (1-50 employees): $30–$100 per gift
• Mid-Sized Companies (50-500 employees): $50–$150 per gift
• Large Enterprises (500+ employees): $75–$500 per gift

According to a 2023 Coresight Research study, companies spent an average of $78 per corporate gift, but this fluctuates based on industry and recipient.

How Much Should You Spend on Employee Gifts?

Employees appreciate recognition, and well-timed gifts can improve morale and retention. But how much should you spend?

A survey by Snappy found that 63% of employees feel appreciated when they receive a meaningful gift, and those who feel valued are more likely to stay loyal to their employer.

What’s the Right Budget for Client and Partner Gifts?

When sending gifts to clients or business partners, you need to strike a balance between generosity and appropriateness. Here’s what most businesses spend:

Rule of Thumb: If a client generates six figures in revenue for your company, a $200-$500 annual gift isn’t unreasonable. For smaller clients, a $50-$100 thoughtful gift will do.

What Industries Spend the Most on Corporate Gifts?

Not all industries gift at the same level. Here’s how some sectors compare:

• Finance & Law – Highest spenders, often in the $150–$500 range per client.
• Tech & Startups – Prioritize branding, averaging $75–$200 per gift for employees and clients.
• Retail & E-commerce – Typically invest in branded swag ($30–$100 per gift).
• Healthcare & Pharma – Often restricted in spending due to compliance laws ($50–$150 per gift).

What Factors Should Influence Your Corporate Gifting Budget?

1. Who’s Receiving the Gift?

A long-term client deserves a higher-value gift than a vendor you work with once a year.

2. What’s the Occasion?

A holiday gift can be more extravagant than a simple thank-you gift.

3. How Many People Are You Gifting?

Bulk gifting (e.g., sending to all employees) often lowers per-unit costs.

4. What’s Your Expected ROI?

If gifting a high-value client leads to a $500K contract renewal, a $300 gift makes financial sense.

5. Compliance & Ethics Rules

Certain industries, such as finance and healthcare, have strict rules about corporate gifting. Be sure to check guidelines before sending high-value gifts.

How Can You Maximize Your Corporate Gifting Budget?

Even with a tight budget, you can still make an impact. Here’s how:

• Buy in Bulk – Many companies offer discounts when purchasing large quantities.
• Personalize Thoughtfully – A $75 personalized gift often feels more meaningful than a generic $200 one.
• Use Subscription Gifts – Monthly snack boxes or coffee subscriptions keep your brand top of mind all year.
• Leverage Branding – High-quality branded gifts (not cheap swag) serve as long-term marketing tools.

Final Thoughts: The Sweet Spot for Corporate Gifting Budgets

Your corporate gifting budget should align with your company’s financial goals, recipient importance, and industry standards.

If you’re looking for high-quality, customizable corporate gifts, check out Small Packages’ corporate gifting options to find the perfect balance between thoughtfulness and budget.

FAQs About Corporate Gifting Budgets

How much do companies spend on corporate gifting per year?

On average, companies allocate 1-3% of their revenue to corporate gifting, with larger companies spending millions annually.

What is an appropriate budget for employee gifts?

For work anniversaries and holidays, $50–$150 per employee is a common range, though promotions and milestones may warrant higher spending.

What’s a good budget for high-value clients?

For VIP clients, a $250–$500+ budget is standard, depending on their revenue contribution and relationship length.

Are corporate gifts tax-deductible?

Yes, but IRS regulations cap deductions at $25 per recipient per year, though there are workarounds for promotional and branded items.