Cash Donations Dominate WA Corporate Giving
15 January 2014 at 9:50 am
Cash donations are the most dominant form of community investment among Western Australian corporates, a benchmarking scheme has revealed.
The WA Corporate Giving Index suggests that in 2013 companies reported on average 54.3 per cent cash, 15.3 per cent time and 30.4 per cent in-kind contributions, as a percentage of the total contribution the company has invested in community.
According to Giving West, early indications show that WA corporates are aiming to contribute more than 1 per cent pre-tax profit to charity, with an average pre-tax profit contribution of 1.71 per cent.
“WA corporates are taking up the challenge to make a lasting impact on WA, with more structured programs supporting the growth and sustainability of community organisations,” Giving West CEO Kevin MacDonald said.
“Businesses are creating Foundations and Grants programs to better manage their project support. They are creating more structured long term partnerships with community organisations that align with their company missions.”
Sixteen companies are involved in the Index, up from seven in 2012.
The scheme was developed in 2012 by Giving West in collaboration with benchmarking group LBG Australia & New Zealand (LBG) and supported by the West Australian.
LBG is an internationally recognised standard for measuring and benchmarking a company’s community investment and the scheme uses a simplified version of the LBG methodology.
The Index, which aims to provide a starting point for growing community investment measurement and reporting in the state, was developed to address the fact that though there are Australia-wide statistics available, there are limited statistics on corporate giving available in WA.
“Through the showcasing of good giving stories and statistics we hope to inform and inspire businesses that are looking to grow or set up giving programs,” MacDonald said.
Nationally, corporate giving has risen by 16 per cent with more than $237 million contributed to the community this year, according to LBG’s 2013 Annual Review.
The review demonstrated a growing trend towards investment in long-term community initiatives rather than one-off donations. 56 per cent of all contributions were towards long-term projects, up from 53 per cent in 2012 and 47 per cent in 2011.