Corporate giving taking a hit, survey says

Corporate giving is on the chopping block this year, according to a survey of 158 companies conducted by The Conference Board. The survey conducted in February showed that 45% of the companies have already cut their giving budget, and 16% are considering doing the same. Also, 35% said they planned to make fewer grants this year, and 21% said they would make smaller grants. Companies are being more strategic about giving this year, and are examining more closely the mission of the organizations they are contributing to, according to survey respondents. “It is definitely an issue of the companies trying to get the maximum value for their contribution dollars,” said Carolyn Cavicchio, senior research associate of the Global Corporate Citizenship Division at New York-based The Conference Board, a non-profit membership organization of corporate executives which also provides research and analysis. Event sponsorship will see the biggest decline in gifts this year, with 55% of the respondents reporting that resources will decline. In terms of focus areas, 41% reported a decrease in the amount that will be given to arts and culture. At the same time, 28% said there will be an increase in giving to causes such as the environment, sustainability and climate change. “Companies are recognizing that climate change is a business risk for them and they are concerned about these issues,” Ms. Cavicchio said. Also, 45% said more resources would be used to support volunteerism. Giving to domestic causes will largely remain flat, while 21% reported that China is growing in importance for international giving. “China is a growing market and giving tends to follow markets,” Ms. Cavicchio said. “Also more companies have offices, employees and customers in more countries.” Because the economic crisis occurred late in the year, it had a minimal impact on 2008 giving, the report said. Only 13% reported that they cut their giving budget in the fourth quarter. Nearly half, or 42%, of the companies surveyed had more than $10 billion in worldwide sales last year.