How, and how much, are Canadian companies giving?
January 30, 1995; Canadian FundRaiser
Respondents to a recent Conference Board survey of Canadian corporations reported donating $126 Million to community causes in 1993. This represents an increase in the average contributed per corporation. Over 170 companies responded to the survey, conducted by the Institute of Donations and Public Affairs Research (IDPAR), a separately funded centre within the Conference Board.
IDPAR estimates that Canadian companies donated a total of $476 Million in 1993, down from $480 Million in 1992. The pattern of contributions remains similar to previous years and continues to focus on education, social services and health.
Among the survey's other findings were these:
- Gift-in-kind giving continues to be incorporated into support programs, with the main factors influencing contributions being the availability of product and person time, as well as the need to tie in with the overall policy or focus.
- Volunteer Programs continue to represent untapped opportunity for increasing corporate visibility in the community. Over a third of respondents noted that their company provides formal volunteer support, while 19 per cent considered their programs to be informal.
- Matching Gift Programs demonstrated a commitment to employees for the choices they make in their own community. Almost half have matching gift programs, and support appears to extend beyond the traditional post-secondary education and United Way coverage. More than a third reported having matched gifts in these areas, as well as arts and culture, health and social services, and K-12 education.
- External issues and changing demographic trends outside the corporate environment affect patterns of giving. Key factors influencing priority giving areas reflect a need to establish and nurture a synergy between community needs and corporate strategy. Continued support for traditional areas of corporate giving, as well as for community colleges, at-risk youth, child and elder care, youth literacy and K-12 education is expected.
- Recognition of involvement in community activities appears to be an unresolved issue for many organizations. Arts, culture and the United Way do the best recognition job.
- Communicating information externally about their community activities is handled through press releases by more than a quarter of respondents. Over a third said they don't publicize their community projects or initiatives, and internal communication methods are more widely used, with company newsletters, word-of-mouth, and annual reports topping the list. Given the increasing evidence of the value to corporate reputation and competitive advantage of being perceived as a good corporate citizen, it's important that companies communicate with the public that supports them.
- Responsibility for setting the policy direction for community investment programs rests most often with the president, the donations committee or the CEO, in that order. Responsibility for administering the program often rests with the public affairs department, followed by the community relations department.
