Many Big Corporations Are Not Increasing Their Giving, Survey Finds

Giving by the world’s largest companies lagged behind growth in corporate profits for the three years ending in 2015, according a study released today.

The median amount firms set aside for philanthropy was essentially flat, rising from $21 million to $21.1 million in inflation-adjusted dollars between 2013 and 2015, according to a survey of 211 companies conducted by CECP, a coalition of corporate chief executives, and the Conference Board, a business membership organization. Total giving as a percentage of pretax profit declined from 0.99 percent to 0.86 percent.

Corporations reported divergent results: Giving increased at 47 percent of the companies surveyed and decreased for 45 percent. Companies that curtailed their philanthropy gave a number of reasons, including a decline in employee-engagement programs like matching grants and a drop in revenue or profits. Some also said previously supported programs were being put on pause during a strategic review of corporate giving.

The number of employees working in social engagement at the surveyed companies increased by 3 percent between 2011 and 2015, even as their total work force dropped by 2 percent. Median staffing in their corporate-social-responsibility departments was eight employees.

Some companies are relying on such departments to coordinate and promote philanthropy throughout the entire corporation, rather than simply making cash grants through a company foundation, The Chronicle found in a survey of corporate giving in June.

The results “point to the growing importance of the corporate-social-engagement offices in leading companies around the world, which should come as no surprise when, increasingly, business performance is tied to social responsibility,” Carmen Perez, director of data insights at CECP, said in a statement.

Shifting Causes

The report also showed changes in corporations’ areas of philanthropic focus.

Between 2013 and 2015, the percentage of companies for which the environment was a main focus area declined from 27.3 percent to 25 percent. Diversity and inclusion also declined from 7.6 percent to 4.7 percent. Gains were seen in STEM (science, technology, engineering, and math) training, work-force development, and aid to veterans.

Among other findings:

• The proportion of employees volunteering to take part in companies’ community programs rose from 28 percent in 2013 to 33 percent last year.
• In 2015, 76 percent of companies had a corporate foundation. The median amount of foundation giving was $6.9 million.
• The median staff size at corporate foundations was four employees.
• Matching gifts accounted for about 12 percent of corporate cash gifts in 2015.