According to the most recent Giving USA Foundation report, charitable contributions in the U.S. grew 4.4 percent in 2013 but still haven’t rebounded to peak levels achieved before the economic recession. But one of the most disappointing aspects of the report involves corporate philanthropy. Last year, corporate giving fell by nearly 2%, to $17.9 billion.
The economy is on the mend and individual giving is up 4 percent, representing the largest and fastest growing area of giving. Other forms of giving - foundations and bequests - are also up, leading to a fourth straight year of growth in total giving.
But corporations alone are heading in the opposite direction. Companies are still slow to hire and holding on tightly to cash, depriving nonprofits of the increased prosperity that they're experiencing as the economy recovers.
The drop in corporate giving is troubling for all parties involved. Nonprofits lean heavily on corporations for giving, and when numbers are down they must scramble for alternative sources of funding. And companies are playing with their own bottom lines when they skimp on corporate philanthropy. Now more than ever, employees are paying close attention to the philanthropic behavior of corporations and evaluating them accordingly.
So, what gives? Perhaps as company volunteer programs assume an ever more prominent role within Corporate America, CEOs are letting their foot off the gas when it comes to old-fashioned giving. And certainly there are many ways to give back, not just with traditional checkbook philanthropy but through supporting employee volunteer and giving programs with tools like matching funds, Dollar for Doers, skills-based volunteering and in-kind giving.
According to a recent survey by America’s Charities, companies increasingly recognize that corporate giving is no longer just about giving; it’s about creating fully integrated opportunities to engage employees. The old way of doing things, where volunteering, giving, pro bono work and engagement were all separate buckets spread out over the company, is yesterday’s news. Businesses now recognize that all of these practices fall within the same camp and need to function as a coordinated effort.
That said, other forms of corporate philanthropy shouldn’t let companies off the hook from direct giving. Nonprofits need the resources of companies to accomplish their important missions, and companies need to demonstrate a complete level of generosity towards nonprofits if they want to be perceived as good corporate citizens and socially conscious partners in improving the world.
So, Corporate America, it’s time to rev up your philanthropy engines to a higher gear. If you need some inspiration to help you get motivated, keep these thoughts in mind:
Charity is just writing checks and not being engaged. Philanthropy, to me, is being engaged, not only with your resources but getting people and yourself really involved and doing things that haven’t been done before. – Eli Broad
Philanthropy is all about making a positive difference in the world by devoting your resources and your time to causes you believe in. In my case, I like to support causes where “a lot of good comes from a little bit of good,” or, in other words, where the positive social returns vastly exceed the amount of time and money invested. – Jeff Skoll
Billions are wasted on ineffective philanthropy. Philanthropy is decades behind business in applying rigorous thinking to the use of money. – Michael Porter
Philanthropy is involved with basic innovations that transform society, not simply maintaining the status quo or filling basic social needs that were formerly the province of the public sector. -David Rockefeller.
Philanthropy is not about giving money but about solving problems. While well-meaning, the idea of writing a check and calling it ‘philanthropy’ is extremely short-sighted and, unfortunately, extremely pervasive. – Naveen Jain
Being innovative in your philanthropy allows you to stride forward in your giving journey; you can marry your mind and heart to turn charity into lasting impact; and you can become more ambitious in your giving. – Laura Arrillaga-Andreessen
In the same way that you’re driven in your business to keep innovating – Facebook is a wonderful example of constant innovation – think about doing that in philanthropy. – Pierre Omidyar
Changing the world doesn’t require much money. Again, think in terms of empowerment and not charity. How much were Gandhi’s teachers paid? How much did it cost to give Dr. Martin Luther King the books that catalyzed his mind and actions? – Tim Ferriss
Earlier in this century, philanthropy often flowed from the wills of dead industrialists. In recent decades, it’s as likely to have come from a very alive business leader, entertainer, artist or sports star. The most effective of these patrons begin the process of giving by asking what they care about passionately. – Michael Milken
I don’t think you ever stop giving. I really don’t. I think it’s an ongoing process. And it’s not just about being able to write a check. It’s being able to touch somebody’s life. – Oprah Winfrey
Engaging in social business is beneficial to a company because it leverages on business competencies to address social issues, involves one-time investment with sustainable results, and produces other positive effects such as employee motivation and improved organizational culture. – Muhammad Yunas
