Many corporations give donations from a contributions budget or a corporate foundation. While allowed 10% of their profits to go to charity, why does corporate giving only average 1%. Why out of 2006 total philanthropy of nearly $300 billion (Giving U.S.A.) does corporate giving only account for 4% (6% after you take out nearly $100 billion of individual giving to religious causes)?
First of all it’s a very noisy 6%. Corporations want a lot of visibility for their giving while individuals who give 64% of funds (after religious giving is taken out) usually are quiet, anonymous givers.
Also, realize that corporate giving isn’t really philanthropic, but rather investments toward enlightened self interest. They want visibility in return for their donations.
If you look at many nonprofit revenue statements, you will find corporate giving much higher than this 6% Giving U.S.A. statistic. The reason? Many corporations supplement their giving budgets through marketing sponsorships, human resources budget allocations (for student internships and scholarships), and from R&D budget allocations (research and development funds for university sponsored research or affiliations).
While this is good news for nonprofits, it is important to remember these aren’t “gifts” but rather contractual obligations with expectations from corporations. In fact, some organizations are finding the contracts more detailed, more lawyer driven, and more like a business deal than a generous philanthropic gesture.
First of all it’s a very noisy 6%. Corporations want a lot of visibility for their giving while individuals who give 64% of funds (after religious giving is taken out) usually are quiet, anonymous givers.
Also, realize that corporate giving isn’t really philanthropic, but rather investments toward enlightened self interest. They want visibility in return for their donations.
If you look at many nonprofit revenue statements, you will find corporate giving much higher than this 6% Giving U.S.A. statistic. The reason? Many corporations supplement their giving budgets through marketing sponsorships, human resources budget allocations (for student internships and scholarships), and from R&D budget allocations (research and development funds for university sponsored research or affiliations).
While this is good news for nonprofits, it is important to remember these aren’t “gifts” but rather contractual obligations with expectations from corporations. In fact, some organizations are finding the contracts more detailed, more lawyer driven, and more like a business deal than a generous philanthropic gesture.
Photo courtesy of Gerson, Preston, Robinson & Company
Tom Wilson
Author, Winning Gifts
Author, Winning Gifts
Permanent Link: Corporate Fundraising — Corporate Giving Is Enlightened Self Interest
http://majorgiftsguru.com/2008/02/corporate-fundraising-corporate-giving.html
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