With many corporations cutting back on spending in response to the global recession, corporate philanthropic giving has been in danger of seeing significant declines.
Though financial donations by corporations have taken a hit, many businesses are responding by shifting their focus away from cash donations and toward volunteerism and other kinds of donations, according to a recent survey from LBG Research Institute.
The report, titled Making the Most of What We Have: Corporate Giving in the New Economy, found that corporate charitable budgets have indeed declined in the face of the economic downturn – 52 percent of corporations and 47 percent of corporate foundations reported decreases in their charitable budgets in the past year.
However, to compensate for the decline in cash giving, 84 percent of corporations said they are encouraging more employee volunteerism, 48 percent have increased the number of corporate volunteer events this year, and 45 percent report increased participation rates in employee volunteer programs.
In addition, 15 percent of corporations are increasing their in-kind donations such as meeting space and office equipment, while 12 percent are increasing their product donations.
To help meet these refocused philanthropic goals, 40 percent of businesses are reassessing grant criteria to better meet community need while 46.2 percent are increasing their emphasis on partnerships with nonprofits.
"Corporate philanthropy is entering a new age," said Dr Linda Gornitsky, founder and board president of the LBG Research Institute. "All the budget cutting and re-evaluation that has been going on will, in the long run, make corporations more strategic and deliberate in their giving. This is certainly good – and the economy has provided the impetus for change."
This maintained focus on philanthropic activity despite the recession was also reflected in a recent survey from the University of California San Diego Extension, which found that the number of Americans who reported donating time or money to a global philanthropic cause increased 21 percent since last year.
