Linking Charity to Company’s Bottom Line Is Top Concern

By Ian Wilhelm

Corporate grant makers say their most important concern is how best to align their giving with their business needs, says a new survey.

The push by corporations for donations to benefit their bottom line is not a new trend, but the survey shows that the approach remains popular, with a majority of respondents saying it is a top priority in 2006.

The survey was conducted by the Conference Board, a membership association of companies that is based in New York. It surveyed 77 large corporations in Canada and the United States, representing a variety of businesses, including financial services, drug makers, and computer companies.

Fifty-one companies said using their philanthropy to further business goals was one of their top three priorities this year.

Aside from supporting for-profit objectives, a significant number of companies reported that giving to civil-rights organizations and groups that focus on racial equality is a growing priority.

Thirty-two respondents said “diversity” is gaining importance as a grant-making program.

What’s more, 17 said that Latino organizations are likely to receive more funds, perhaps a result of the Congressional debate about immigration laws in the United States.

But while current events may have prompted the interest in diversity, other social issues on the government’s national agenda appear to have had little influence.

While the White House has pushed companies to contribute to religious charities, such giving was a low priority for the survey respondents, with two listing it as important.

The Conference Board also noted with some surprise that despite the hurricanes that devastated the Gulf Coast last year, only 18 companies listed responding to natural disasters as one of their top three priorities in 2006.

Among the 18-page 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.

The report, “Philanthropy and Business: The Changing Agenda,” can be obtained from the Conference Board for $395 by calling (212) 339-0345 or online (http://www.conference-board.org/publications/reports.cfm).