Increases attributed to large non-cash donations and corporate mergers
The Committee Encouraging Corporate Philanthropy (CECP) released Giving in Numbers: 2010 dition, the CEO membership organization’s annual report on corporate giving, drawing from over $70 billion in historical data ince 2001. 171 prominent companies participated in the survey on 2009 contributions, including 61 of the Fortune 100. Giving in umbers represents the industry’s first comprehensive look at 2009 giving trends and is the only report made publicly available.
Alison Rose, Manager, Standards and Measurement, said, “While this analysis is written for corporate giving professionals, for whom it serves as a powerful tool positioning their giving in the larger field of corporate philanthropy, it also provides invaluable
insight for journalists, consultants, nonprofit executives, and others interested in understanding the ways that corporations are leveraging their cash and non-cash resources to continue to support their communities, even in difficult economic times.”
To accurately portray the magnitude of changes in total giving at a company level, CECP provides a distribution demonstrating the major trends, showing that giving fell
at 59% of companies in 2009, with 40% of companies decreasing by 10% or more. Comparatively, 36% of companies increased giving, with 20% of companies
increasing by 10% or more. 5% of respondents experienced negligible changes in giving levels.
In contrast, aggregate corporate giving in CECP’s fouryear matched set of 95 companies rose in 2009 to $9.93 billion, up 7% from 2008 and reaching the
highest value in four years. The increase is largely attributable to corporate mergers resulting in combined giving budgets and increased donations of medicine by pharmaceutical companies, which were quick to respond when millions of Americans lost their health insurance due to unemployment.
In a recent CECP poll of leading CEOs and giving officers, a clear majority in both groups reported that they believe it is necessary to take a proactive approach in solving social problems important to their business because, as corporate citizens, they are in a unique position to make a difference. One distinctive aspect of corporate giving is the tremendous potential of its non-cash contributions, which represent valuable products and professional services for which nonprofits would otherwise have to pay. Of all the giving types, non-cash proved to be the most volatile, with more than half of companies reporting changes in non-cash giving greater than 25% or less than 25%. Despite these fluctuations, aggregate non-cash giving rose by 16% over the previous year. By comparison, two-thirds of companies reduced their cash contributions, dropping to its lowest point in four years.
For more information, visit www.CorporatePhilanthropy.org