New Age of Corporate Giving - LGB Research
Thursday, 17th September 2009 at 1:08 pm
Corporate Giving is moving into a new age, according to a survey released by LBG Research Institute in the US, pointing to an increasing focus on non-cash giving, volunteerism, partnerships and accountability.
With giving budgets down for many corporations and fewer community involvement staff on the payroll, corporate charitable giving departments are busier than ever.
The good news for many charities is that the corporations surveyed by LBG Research Institute show no decrease in their commitment to supporting their communities.
According to the report, “Making the Most of What We Have: Corporate Giving in the New Economy,” corporations and their foundations are showing their support for their communities by marshaling other, non-cash resources.
More than 84% of corporations surveyed say they are encouraging more employee volunteerism to offset a decline in cash giving. More than 48% have increased the number of volunteer events this year. And almost 45% report increased participation rates in their employee volunteer programs.
Besides giving their employees’ time, some companies are stepping up product and in-kind donations.
Fifteen percent report they are increasing their in-kind donations (such as meeting space, office equipment, etc.). And 12% are increasing their product donations (products they manufacture, such as pharmaceuticals, apparel, etc.).
Almost half the corporations in the survey report that they are emphasising partnerships with Not for Profits over straight cash donations. Half are also paying more attention to measurability and Not for Profit accountability.
Donna Devaul, executive director of LBG, says it’s not just cheque writing anymore.
She says corporations want measurable results and are actively seeking Not for Profit partners that can produce win-win, impactful programs.
In fact, one-third of the survey respondents say they are actively seeking new Not for Profit partners to better match strategic goals.
The current study is a follow-up of a 2008 survey in which LBG asked respondents to predict their giving budgets. At the time, 42% of corporations and 37% of corporate foundations surveyed predicted their charitable giving budgets would decrease in 2009.
Now, halfway through 2009, 52% of corporations and 47% of corporate foundations are reporting actual declines.
Those 10 percentage points have led the Institute to revise its overall corporate giving predictions.
Devaul says when you look at the size of predicted budget increases and decreases across the sample, the percentage decrease will probably be in the range of 7% to 9%, instead of 3% to 5% projected in 2008.
The complete report, “Making the Most of What We Have: Corporate Giving in the New Economy,” is available on the LBG website at www.lbgresearch.org