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CORPORATE PHILANTHROPY INCREASED IN 2007
GIVING LEVELS EXPECTED TO SUSTAIN THROUGHOUT 2008
NEW YORK, June 3, 2008 – Despite economic uncertainty impacting many companies, corporate philanthropy increased in 2007. As the first to report total corporate giving from 2007, today the Committee Encouraging Corporate Philanthropy (CECP) released new research revealing that giving by large, multi-national corporations increased by 5.6%, from a median of $24.67 million in 2006 to a median of $26.05 million in 2007.
Additional trends from 2007 data include:
• 66% of matched-set respondents increased their giving in 2007, 34% decreased their giving, an increase from 2006 in which 56% of companies grew their giving while 44% saw spending decreases.
• 56% of companies reporting lower profits increased their giving.
• Of the eight companies in this sample who experienced losses in 2007, seven companies still increased their giving.
Among companies that increased giving, many cited a shift toward funding new strategic focus areas, as well as an increased level of senior management attention to community investment. In fact, all of the forty CEOs attending CECP’s ‘Board of Boards’ conference in February agreed via anonymous opinion poll that corporate philanthropy is important to creating long-term shareholder value.
The weakening economy did not seem to play a significant role for most companies’ giving in 2007. And when CEOs were asked in the same poll, “How important should the economy be in determining corporate cash contributions?” 83% responded within the range of “not important” to “neutral”; none felt it was “very important.” In addition, 89% of CEOs agreed with the statement, “Companies should have mechanisms in place (e.g. cash reserves or endowed foundations) to sustain contributions during periods of weak financial performance.”
The Committee projects that despite an apparent earnings slowdown in 2008, most companies will likely maintain 2007 levels of giving in 2008, with some expected to increase or restructure their budgets to reach community partners most strongly impacted by the economy. 88% of companies surveyed have a corporate foundation, which is an important tool to help businesses sustain giving levels in years with strong and weak profits alike.
In addition, CECP projects companies to remain committed to long-term community investments. CEOs and corporate leadership recognize that nonprofits depend upon a level of continuity from corporate commitments.
They also acknowledge the business value companies foster through philanthropic efforts. The elevated expectations from stakeholders including employees, business partners, customers, and others, require consistent community support on the part of corporations. Executives understand that meeting or falling short of these public expectations can potentially have a strong influence on customers’ purchasing decisions as well as employee recruitment and retention. These pressures therefore play an important role in executives' decisions about increasing or decreasing giving during a challenging economy.
According to Charles Moore, CECP executive director, “Historically, companies have made strong commitments to respond during periods of higher unemployment and elevated community need.” He added, “In addition to sustained cash contributions, companies have also become more creative at better identifying and leveraging resources such as in-kind product donations and employee pro bono service to greater benefit community partners.”
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The above data were compiled in 2008, referencing the 2007 giving year, by CECP’s annual Corporate Giving Standard survey of philanthropic initiatives among 155 companies. Findings will be presented on June 4th to senior corporate giving professionals at the CECP Corporate Philanthropy Summit in New York City at the Time Warner Center.
The Corporate Giving Standard is the world’s only online, on-demand philanthropy reporting tool offering individual company results, unprecedented benchmarking against peers, and year-over-year trend reporting on detailed corporate giving programs. Top-level findings from these data are published annually in CECP’s Giving in Numbers report, to be released in the fall of 2008.
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ABOUT CECP
Paul Newman and Ken Derr are the founding co-chairs of the Committee Encouraging Corporate Philanthropy (CECP), the only international forum of business CEOs and Chairpersons pursuing a mission exclusively focused on corporate philanthropy. CECP's 175 CEO members work toward a mission of leading the business community in raising the level and quality of corporate philanthropy. www.CorporatePhilanthropy.org
CONTACT
Lindsay Siegel
Committee Encouraging Corporate Philanthropy
LSiegel@CorporatePhilanthropy.org
212.825.1256 |
