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Emerging Trends in Corporate Philanthropy January 15, 2014

Emerging Trends in Corporate Philanthropy January 15, 2014. Michael Stroik Manager, Research and Analytics CECP mstroik@cecp.co. Today’s Agenda. About CECP CECP Organizational Beliefs Giving in Numbers Annual Trends Report Corporate Giving Trends

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Emerging Trends in Corporate Philanthropy January 15, 2014

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  1. Emerging Trends in Corporate Philanthropy January 15, 2014 Michael Stroik Manager, Research and Analytics CECP mstroik@cecp.co

  2. Today’s Agenda About CECP • CECP Organizational Beliefs • Giving in Numbers Annual Trends Report • Corporate Giving Trends • Corporate Giving Before, During, and After the Global Recession • New Jersey Benchmarking Statistics • Employee Engagement Trends • Recent Trends in Employee Engagement 2

  3. About CECP 3

  4. Introduction to CECP Who We Are • Nonprofit organization founded by Paul Newman in 1999 as the Committee Encouraging Corporate Philanthropy • International forum of corporate CEOs and chairpersons What We Believe • Philanthropy is a long-term investment with the potential to drive significant societal and business returns • Executive leadership is essential for successful community engagement • Corporations have unique resources that can support communities Who is Engaged • 149 CEOs and Chairpersons • Engaged companies from each industry Our Strategic Focus • Represent the CEO voice • Own the standard on philanthropy practice and measurement 4

  5. Corporate Giving Standard Survey and Trend Report • Annual survey of Global 1000 companies on the scope and scale of their philanthropy and employee engagement programs. • Survey conducted each spring in association with The Conference Board. • 240 companies participated in the most recent survey on 2012 contributions. The survey on 2013 contributions launches in January. • Includes corporate cash giving, corporate foundation giving, and non-cash contributions (including pro bono service). • The survey, valuation guidance, and report are all available as free downloads at cecp.co/research. 5

  6. Corporate Giving Trends 6

  7. Business Has Been Slow To Recover As Profits Dropped in 2012 • Business performance has slowly rebounded since the global recession began in 2008, but in 2012 companies did not earn as much as they did in 2007. Median Revenues Median Pre-Tax Profits $ Billions $ Billions Note: Inflation-Adjusted, 6-Year Matched-Set Data, N=96 Note: Inflation-Adjusted, 6-Year Matched-Set Data, N=93

  8. Companies Are Giving More Than Before The Global Recession • Despite a slow economic recovery, the majority of companies increased giving from 2007 to 2012. Distribution of Companies by Changes in Total Giving Between 2007 and 2012 Percentage of Companies Note: Inflation-Adjusted, 6-Year Matched-Set Data, N=96

  9. Non-Cash Giving Growth Drove Overall Giving Increase From 2007 to 2012 • Non-cash giving as a percentage of total giving grew from 57% in 2007 to 69% in 2012. $10.79 $10.58 69% 57% Note: All Figures in Billions, 6-Year Matched-Set Data, N=96

  10. Companies Aim To Support Communities With Unique Non-Cash Resources • CECP member companies often support community partners with non-cash contributions, including product, pro bono service, and other in-kind contributions.

  11. Reasons For Giving Increases and Decreases in 2012 Reasons for Giving Increases Increased Non-Cash Contributions Improved Business Performance Increased Commitment to Education Initiatives Reasons for Giving Decreases Company-Wide Cost Reductions Reduced Disaster Spending Refreshing Focus Areas

  12. Companies Support Education More Than Any Other Program Area • For the first time since the introduction of Giving in Numbers, in 2006, Education (K-12 and Higher Education combined) became the most popular program area, inching ahead of Health and Social Services for the top spot on the list. Note: Average Percentages, N=172

  13. Giving Allocations Shift Most Notably in Community & Economic Development and Culture & Arts <1% <1% <1% Note: Average Percentages, 6-Year Matched-Set Data, N=51

  14. Companies Are Focusing Philanthropy Programs To Achieve Deep Societal Impact • Companies today are more likely to invest the majority of their philanthropy programs in individual program areas compared to before the global recession. “I helped to start CECP with the belief that corporate America could be a force for good in society.” - Paul Newman

  15. New Jersey Company Program Area Allocations • New Jersey companies supported Health & Social Services considerably more than the average global company. Note: Average Percentages, N=9 Note: Average Percentages, N=172

  16. Employee Engagement Trends 16

  17. Companies Match Gifts Primarily Through Workplace Giving Campaigns and Year-Round Policies • 8% of employees participated in the typical Year-Round Policy while 44% of employees participated in the typical Workplace Giving Campaign (medians). 2012 Matching-Gift Program Allocation Note: Average Percentages, N=181

  18. Research Indicates That Engaged Employees Are More Loyal To Their Employers • Studies show that employees with favorable impressions of a company’s philanthropy program are three times more likely to be truly loyal to the company. In addition, employees who volunteered through employee-volunteer programs strengthen relationships with co-workers and feel happier overall.

  19. Companies Strive To Engage Employees In Community Investment Programs • More companies offered on-company-time and outside-company-time employee volunteer programs in 2012 than in 2007. Percentage of Companies with Paid-Release-Time and Outside-Company-Time Volunteer Programs Note: Matched-Set Data, N=53

  20. Paying Employees While Volunteering Is More Popular In The Northeast And Midwest 64% of companies based in the Midwest offer a Paid-Release-Time Volunteer policy 66% of companies based in the NE offer a Paid-Release-Time Volunteer policy 45% of companies based in the West offer a Paid-Release-Time Volunteer policy 51% of companies based in the South offer a Paid-Release-Time Volunteer policy 20 Note: Among companies based outside of the U.S., 47% of companies offer a Paid-Release Time policy

  21. A Growing Percentage Of Companies Offer Domestic and/or International Pro Bono Programs Percentage of Companies with Pro Bono Service Engagement Programs Since CECP began tracking pro bono programs in 2008, companies have increased offerings. Note: 6-Year Matched-Set Data, N=68 21

  22. Service Companies Have Traditionally Been More Engaged With Pro Bono Work • Financials and Information Technology companies provided the highest average levels of total pro bono support as a percentage of total non-cash gifts. Note: Telecommunications Services companies are excluded due to a small sample size, Average Percentages.

  23. Paid Release Time Programs Stand Out As The Most Successful Employee Volunteer Program

  24. Regions Differ In Approach To Employee Engagement Programming Paid-Release-Time programs were most popular in the Northeast and Midwest Paid-Release-Time programs were most popular in the Northeast and Midwest Dollars for Doers programs were most popular in the West. Family Volunteering programs were most popular in the South. 24

  25. Industries Differ In Approach To Employee Volunteer Engagement

  26. Why Are Companies Offering More Employee Engagement Programs? Millennials (individuals born between the early ‘80s and the early 2000s) are holding companies accountable for engaging them in community programs. 26

  27. Open Discussion

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