Companies are aligning their philanthropy programs to meet overall business objectives and corporate reputation and branding needs, according to “Philanthropy and Business—The Changing Agenda”, a report released on May 17 by The Conference Board.
About the Report
The report is based on a survey of 77 multinational companies earlier this year to find out the professional profile of their corporate contributions executive and their companies' giving priorities and challenges in 2006.
Key Findings
Nearly half of the survey participants also cited aligning the giving program with business objectives and corporate reputation/branding as the biggest change in their function during the last five years.
As part of their giving programs, more than two-thirds of responding companies report that volunteerism will grow in importance as a management priority.
More than one-third of surveyed companies report that the biggest challenge they will face in managing their corporate contributions programs in 2006 is the measurement of results and outcomes.
“Even though late 2004 to 2005 witnessed a significant increase in natural disasters, including the Asian tsunami and hurricanes Katrina and Rita, fewer than one-quarter of survey participants listed the costs of responding to natural disasters as one of their top three philanthropy challenges for 2006,” says Sophia Muirhead, senior research associate at The Conference Board and author of the report.
Diversity Gaining In Corporate Philanthropy
Forty-two percent of survey participants listed diversity as the program area that will be more important in 2006, while 31 percent listed alumni giving as becoming less important.
Among giving decisions related to diversity, 22 percent of companies surveyed listed Latino organizations as being more important to their giving programs this year, while 17 percent cite African American organizations as being more important.
Many companies (40 percent) use the size of their workforce in local markets to decide where to make contributions outside their home country. Thirty percent cite humanitarian needs and 25 percent cite opportunity for business growth in local markets as driving forces behind international giving.
Among the Report's Other Findings
China was the geographic region where companies expected to give more philanthropic dollars this year. Giving to the Middle East ranked as the region with the lowest priority.
Twenty-six companies said measuring the results of their philanthropy was the biggest challenge they face.
Most of the corporations said promoting volunteerism by their employees was of increasing importance.
Product and other in-kind giving and developing leadership at charities were the areas of lowest priority.
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"Philanthropy and Business: The Changing Agenda" can be purchased from the Conference Board by calling (212) 339-0345 or online (http://www.conference-board.org/publications/reports.cfm). |