Estimated reading time: 1 minute, 31 seconds

Large companies increased both cash and noncash giving since 2007, with a higher percentage of noncash contributions in 2012 defining the post-recession giving era, according to a report from the Committee Encouraging Corporate Philanthropy released Tuesday.

CECP analyzed survey responses from 240 companies whose median revenues were $30 billion in 2012. The survey was conducted in association with The Conference Board.

The report showed that total giving increased for 59% of companies from 2007 to 2012, with 38% of all companies increasing their giving by 25% or more.

Aggregate corporate giving rose by 42% ($4.5 billion) from 2007 to 2012 in inflation-adjusted dollars.

Noncash contributions (including product donations and other services) as a percentage of total contributions grew in aggregate from 57% in 2007 to 69% in 2012. Excluding pharmaceutical companies, which accounted for the majority of noncash giving, all other companies increased noncash giving from 28% of total giving in 2007 to 39% in 2012.

"Noncash giving is defining the new corporate societal engagement," CECP's CEO, Daryl Brewster, said in a statement. "This has major implications for NGOs all over the world."

The report said that since 2007, the percentage of companies offering paid-release time volunteer programs increased from 53% to 70%.

Higher education and K–12 schools combined commanded the largest share (29%) of the typical company's programmatic allocation. Health and social services programs remained a top focus area across all sectors, with 28% of the allocation in 2012.

Survey respondents cited several reasons for increased corporate giving from 2007 to 2012:

  • Improved profits
  • Combined giving budgets from mergers and acquisitions
  • Growth in corporate foundation endowments because of the rising stock market
  • Excess inventory, which created more products available for donation
  • Launch of new programs that "unlocked" a higher level of giving.

Companies that decreased giving from 2007 to 2012 often reported declining profits as a main reason for reduced contributions. They also cited companywide cost reductions, the return to prior giving levels following a one-time significant gift in the previous year and corporate spinoffs.

Read 2242 times
Rate this item
(0 votes)

Visit other PMG Sites:

click me
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.
Ok Decline