Companies That Are Thriving in the Recession Throw Their Support to Good Causes

Lego, the Danish toymaker that produces colorful plastic bricks, created a new foundation in the United States two years ago that developed an enviable problem: Last year, it had more money than qualified grant applicants.

The Lego Children’s Fund, in Enfield, Conn., supports innovation and creativity in children’s education. This year it has $1.2-million to give away, about the same as it donated last year. That’s in part because the company’s stock rose 38 percent last year. This year, word seems to be spreading about the new foundation. Grant applications have risen, and officers at the Lego Children’s Fund are pleased by the many and diverse projects they will be able to support, says Julie Stein, a Lego foundation spokeswoman — a rare feeling among grant makers these days.

But they’re not entirely alone. Some corporate-giving programs and foundations say the down times haven’t affected them — yet. Their parent companies are doing well. Some sell necessities. Some are drawing more newly thrifty customers. And some offer the kind of affordable luxuries — like ice cream — that are always in demand, recession or no. Other corporate foundation executives are looking forward to distributing the same, or more money this year.

Jiffy Lube, in Houston, has benefited from one recession trend: More Americans are repairing and maintaining their old vehicles rather than buying new ones. The company, which has 300 franchise holders operating in 2,000 locations around the country, is in its second year of a three-year partnership with the American Heart Association.

Jiffy Lube conducts intensive fund-raising efforts in February and March, encouraging the managers of its franchises to contribute and to raise money from employees and customers. This year, the company gave $1.35-million to the American Heart Association, a jump from $1-million. Next year, says John Sanfacon, Jiffy Lube’s chief marketing officer, the company plans to raise and give even more money for the cause.

It chose that organization, in part, because it seemed to connect with Jiffy Lube’s primary purpose. “We’re in the oil business,” says Mr. Sanfacon. “Oil is the blood of the engine, the heart of the car.”

Another reason to help the heart association is to make the company seem more accessible and friendly to women, who make up 45 percent of its customers. “Car repair is traditionally guy territory,” he says. “We don’t want them to walk in a garage and feel like it’s just a bunch of guys. We want to make the experience less threatening.”

‘A Positive Cause’

Service Corporation International, a cemetery and funeral-home company, is another Houston corporation that is partway through a three-year commitment to a national medical charity.

The company, which reports that its profits on prepaid funerals are up in these cost-conscious times (though cemetery-plot sales are down), chose the American Diabetes Association as its beneficiary because it focuses on a widespread illness that, with proper care and education, can usually be improved or cured, says Diana Vazquez, Service Corporation International’s director of community relations. “We wanted a positive cause, something for employee morale,” she says. Service Corporation promised to donate $1-million each year to the charity for three years; this is the first year of that commitment.

Employees have participated enthusiastically in fund-raising drives and walkathons for the diabetes cause, says Ms. Vazquez. Company officials are pleased with the partnerships, which include local affiliates of the American Diabetes Association, she says. However, though the company intends to continue its charitable giving, it has not decided whether to renew the commitment to the diabetes group next year.

Sustainable Support

For some companies, the environment is a cause that precedes all others, including social-service needs intensified by the recession. Many companies that champion environmental causes sell green products, like hiking and bicycling gear, or reusable water bottles. Some are doing well now — and increasing their giving along with their profits.

Among these profitable companies are Clean Canteen, Clif Bar, Mountain Equipment Co-op, New Belgium Brewing, Patagonia, and Sigg Water Bottles. All belong to 1% for the Planet, a consortium of more than 1,000 companies that have pledged to donate 1 percent of their sales, in good times and bad, to environmental causes. In return, the companies are permitted to use the 1% logo on their products and in marketing, a credential that is intended to appeal to environmentally aware consumers.

Clif Bar & Company, in Berkeley, Calif., which makes sports bars and drinks, raised its giving to environmental and other causes last year and is planning to increase it again this year. Last year it gave more than $1.2-million to approximately 100 grass-roots charities, an increase of $40,000 over the previous year. This year the goal is $1.5-million, says Kate Torgersen, a company spokeswoman. Clif Bar supports small and organic farm projects; wilderness and bicycling programs for young people; local AIDS, diabetes, and lymphoma organizations; and community ecology centers.

‘Recession Proof’

Ben & Jerry’s, the ice cream makers in South Burlington, Vt., has long had a reputation for supporting small grass-roots causes. It reports that it is doing well despite the recession, and plans to raise its giving this year.

When Ben & Jerry’s was sold to Unilever in 2000, a sustained level of corporate giving was included in the deal. The company channels most of its giving through the Ben & Jerry’s Foundation, whose donations, if all goes as planned, will increase this year for the third consecutive time, says Rebecca Golden, director of the foundation.

This year, she says, the foundation is planning to distribute approximately more than $1.4-million in grants, compared with just over $1.1-million last year. The grants, all for $15,000 or less, went to a variety of grass-roots programs, including a car-sharing program in Vermont, an Alaskan council for the preservation of wild-salmon habitat, and an education program for farm workers in the state of Washington on the dangers of pesticides. The corporation also supports Vermont food banks, says Ms. Golden.

But though the money put into the foundation and therefore the donations have steadily risen, the foundation is nevertheless readying a plan for cutbacks, should the economy contract further and dent America’s ice cream budget.

The company’s co-founder “Ben [Cohen] used to say that his product was recession-proof,” says Ms. Golden. “He’d say, ‘Maybe you can’t go out to dinner, but you can always buy a pint of ice cream.’ Well, it might be recession-proof — but not depression proof.”

Thus, the foundation is thinking about drawing out its commitments to projects, beyond the current three to five years, and of making a few larger grants to charities instead of many smaller ones.

Hometown Gift

Culver’s, in Prairie du Sac, Wis., a fast-food franchise, is also benefiting from a widespread taste for comfort food — and is increasing its philanthropy.

Culver’s, with 400 restaurants in 17 Midwestern states, is known for its burgers slathered with butter and frozen custard. Its corporate giving is in keeping with the restaurants’ down-home appeal: The company gives college scholarships to its young employees.

The program has its roots in a single $500 scholarship given to a young employee 17 years ago, a donation suggested by a vendor. Since then, the giving has increased exponentially. This year, the Culver’s VIP Foundation is distributing $220,000 in scholarships of $1,000 to $2,000 to 120 collegegoing employees, up from $199,500 last year.

“It’s our hometown values,’’ says Lea Culver, the foundation’s director. “We take care of our team members.”