Corporate Citizenship
Corporations are looking for signature programs where they can create a lasting impact. Fortune 100 companies increased their giving on average by 4.8%, for a total of $32.60 million in 2006. The per employee contribution rose to $743. Total giving in 2006 was separated into three categories:
- direct cash, 41%
- foundation cash 41% and
- 19% of non-cash giving.
94% have a domestic volunteer program, and/ or a matching gifts program.
Adding Value
Nonprofit involvement brings new and enhanced relationships with key community leaders and officials, expertise in the needs of the community, which adds value to the corporate effort. Recent studies have shown that volunteerism enhances leadership development in young executives. Corporations are also able to leverage tax dollars that have been allocated to various social issues.
The most successful social initiatives result from the same analytical process as those employed in business decisions. As in business decisions research, planning, and strategic development is required before a lasting partnership can be consummated.
Increased Giving Brings Demands for Increased Accountability
As giving has increased, individuals and corporations are taking a closer look at the nonprofit's financial and organization structure to see how their donation is being managed. They review the leadership of the nonprofit, evaluate the quality of the management team, and analyze the financial strength and stability, as well as the expected impact and ROI, before committing company resources.
Business no longer views philanthropy as simply a social investment but rather as a business investment. They realize their contribution strengthens customer loyalty, heightens brand recognition, improves employee retention and increases corporate vitality
"By helping address relevant social issues, we enhance our reputation and improve our competitive position."
– Sidney Taurel, Chairman & CEO, Eli Lilly & Co.
