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Emerging Trends in Corporate Contributions
Michael Stroik
Manager, Research and Analytics CECP
@CECPtweets
#CECPSummit @CECPTweets
Emerging Trends in Corporate
Community Investments
Michael Stroik
Manager, Research and Analytics
May 20, 2014
1
Today’s Agenda
• Celebrate this Year’s Giving in Numbers Participants
• Discuss the Data Behind our Key Takeaways:
A majority of companies are increasing corporate contributions
Employees are taking center stage in the programs companies use to invest in their communities
Companies are beginning to measure the value of corporate contributions
Investing in communities is good for business
2
A New Record for Giving in Numbers Participation: Thank You!
17
3444
76
108
137
154143
173184
214
240
261
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20133
$25.01 Billion in
Total Giving
How much do
companies give?
4
Median:
$18.5M
Top
Quartile
Cutoff:
$53.8M
Bottom
Quartile
Cutoff:
$7.5M Bottom 25%
of Companies
Top 25%
of Companies
Middle
50% of
Companies
Note: Total Giving (Cash + In-kind). N=261. The Top 25% is the top quartile: the value of the data point below which three-
quarters of the data lie when ranked in ascending order. The Bottom 25% is the bottom quartile: the value of the data point
below which one-quarter of the data lie when ranked in ascending order.
Identifying the Most Generous Companies of 2013
5
Identifying the Most Generous Companies of 2013 using a Diverse Range of Metrics
Total Giving
(N=261)
Cash Giving
(N=261)
Total Giving
as a % of
Revenue
(N=241)
Total Giving
as a % of
Pre-Tax
Profit
(N=224)
Top 25%
(75th Percentile)$53.8 Million $35.5 Million 0.22% 1.95%
Bottom 25%
(25th Percentile)$7.5 Million $5.5 Million 0.06% 0.60%
6
Note: The Top 25% is the top quartile: the value of the data point below which three-quarters of the data lie when ranked in
ascending order. The Bottom 25% is the bottom quartile: the value of the data point below which one-quarter of the data lie when
ranked in ascending order.
1.23%
1.06%
0.98%
0.76%
1.58%
0.96%
0.76%
1.12%
1.25%
1.10%
Utilities (n=18)
Technology (n=25)
Materials (n=16)
Industrials (n=25)
Health Care (n=24)
Financials (n=48)
Energy (n=11)
Consumer Staples (n=20)
Consumer Discretionary (n=26)
Communications (n=10)
2013 Industry Giving Comparisons – Median Giving
as a % of Pre-Tax Profit
7
How has corporate
giving changed in
recent years?
8
10% 10% 10%
6%
12%
17%
35%
Decreased bymore than 25%
Decreasedbetween 10%
and 25%
Decreasedbetween 2%
and 10%
Flat Increasedbetween 2%
and 10%
Increasedbetween 10%
and 25%
Increased bymore than 25%
64% of Companies Increased Community Investments from 2010 to 2013
Distribution of Companies by Changes in
Total Giving Between 2010 and 2013
Note: Inflation-Adjusted, N=144.
9
“Community
Investors”
Non-Cash Giving Drove the Increase from 2010 to 2013
“Community
Investors”
(N=75)
All Other
Companies
(N=69)
Aggregate Total Giving +47% -16%
Total Direct Corporate Cash
Giving+29% -14%
Total Foundation Cash Giving +4% -7%
Total Non-Cash Giving +66% -20%
Median Giving as a % of
Revenue+0.05pp -0.02pp
Median Revenue +11% -3%
Note: Inflation-Adjusted.10
Revenues Increased from 2010 to 2013
$24.29
$24.88
$25.54
$24.73
2010 2011 2012 2013
Median Revenues
$ B
illio
ns
Note: Inflation-Adjusted, Matched Set, N=138.
11
66% of Companies Increased Giving as a Percentage of Revenue from 2010 to 2013
0.125%
0.134%0.138%
0.141%
2010 2011 2012 2013
Median Giving as a % of Revenue
12
Note: Inflation-Adjusted, Matched Set, N=138.
2010 to 2013
Industry% of Companies
Increasing Giving
Consumer Staples (N=12) 92%
Industrials (N=11) 73%
Health Care (N=21) 71%
Materials (N=6) 67%
Energy (N=8) 63%
Financials (N=35) 63%
Technology (N=19) 58%
Consumer Discretionary
(N=17) 53%
Communications (N=6) 50%
Utilities (N=9) 44%
Nearly all Consumer Staples Companies Increased Giving from 2010 to 2013, Driven by Non-Cash Gifts
“Excess non-
cash
resources.”
“Business
performance is
projected to
continue
improving.”
“Increasing focus in
strategic
areas…thus, moving
away from certain
categories.”
Note: Inflation-Adjusted, Matched Set.13
Grant Sizes are Growing while the Number of Recipients Per Grantmaker Declined from 2010 to 2013
Note: Medians, Inflation-Adjusted, N=38.
$31,792 $31,459
$34,606
$45,60463
51
63
50
30
40
50
60
70
80
$17,000
$27,000
$37,000
$47,000
$57,000
2010 2011 2012 2013
Grant Size Recipient Organizations Per Grantmaker FTE
14
Where do
contributions go?
15
Education Continues to be the Most Popular
Program Area Supported by Corporations
Civic & Public Affairs, 5% Community &
Economic Development,
14%
Culture & Arts, 5%
Disaster Relief, 3%Education,
Higher, 12%
Education, K-12, 16%
Environment, 3%
Health & Social Services, 27%
Other, 15%
Note: Average Percentages, N=181.16
Community & Economic Development, up 34%
from 2010, is the Fastest-Growing Program Area
17
$287K $481K $451K $791K
Median Corporate Direct Cash Gift
Note: Inflation-Adjusted, Matched Set, N=80.
$0
$200
$400
$600
$800
$1,000
$1,200
2010 2011 2012 2013
Mill
ion
s
Non-Cash
Foundation Cash
Corporate DirectCash
Among Companies Making Global Contributions in 2013, International Giving Has Grown Since 2010
$3.11
$3.61
$3.98
$4.88
16.93%17.15%
17.44%
18.16%
15.00%
16.00%
17.00%
18.00%
19.00%
20.00%
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2010 2011 2012 2013
Median International Giving International Giving as a % of Total Giving
Note: Inflation-Adjusted, Matched Set, N=58.18
$ M
illio
ns
Download Giving Around the Globe to Learn About Exciting Trends in Global Contributions
19Note: Available at cecp.co/research.
What is the role of
employees in
corporate giving?
20
CEOs at CECP’s Board of Boards Conference Identified
Employees as the Most Influential Stakeholder
Poll Question at February’s Board of Boards Conference:
Encouragement from which stakeholder group would matter
most in a decision to expand your company’s investment in the
community?
21
• Employees: 36%
• Customers: 22%
• Board of Directors: 22%
• Shareholders: 14%
• Nonprofit/Community Leaders: 3%
• Media: 3%
• Government: 0%
Cash Contributions
In-Kind Contributions
Employee Gifts
Employee-Volunteer
Time
Social Value Creation
22
Employee Effect
CECP Total Giving
Note: Average Percentages, N=46. Value of Employee Time = $22.55, Source: Independent Sector (unless value is
provided by company). 23
66%
11%
14%
9%
Cash Contributions
In-Kind Contributions
Employee Gifts
Employee Time
Employee Time and Contributions Account for 23% of
the Value Created by the Average Company
More Companies Gave Time Off for Volunteering in 2013
Percentage of Companies Offering
Domestic Volunteer Programs by Year
24Note: Matched Set, N=100.
34% 33%
44%
50%51%53% 54%
59%
2010 2011 2012 2013
Pro Bono Service Paid-Release Time
Employees Are Taking Advantage of Generous
Volunteer Opportunities
45,21147,506
55,623
61,938
31.97%
33.53%
35.31%
36.56%
25.00%
28.00%
31.00%
34.00%
37.00%
40.00%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2010 2011 2012 2013
Median # of Hours Volunteered On Company Time (N=28)
Average Percentage of Employees Volunteering At Least 1 Hour On Company Time (N=36)25
Note: Matched Set.
86% of Companies Encourage Employee Contributions
by Offering At Least One of the Following Matching-Gift
Policies
66%
56% 54%
42%
A Year-Round MatchingGift Policy
A Workplace GivingCampaign
A Dollars-for-DoersMatching Policy
A Disaster ReliefMatching Gift Policy
26
Percentage of Companies Offering…
Note: N=184.
Are companies
measuring the value?
27
A Majority of Companies are Measuring the Societal
Value of their Contributions
28
18%
35%
47%
Very Experienced(5 Years or More)
ModeratelyExperienced(3-4 Years)
Slightly Experienced(2 Years or Less)
76% Measure
Outcomes
and/or
Impacts
N=160. N=119.
24% Do Not
Measure
Outcomes
and/or
Impacts
Companies Use a Variety of Resources for
Measurement Activities in Strategic Giving Programs
29
26% 26%
20%
15%
11%
9%
7%
InternalResource
(Entirely In-House)
ConsultingFirm(s)
InternalResource
(Informed byExternal
Resources)
Universities PubliclyAvailableMetrics
ResearchInstitution(s)
Other
N=105.
Change in Revenues
from 2010 to 2013
Change in Pre-Tax Profits
from 2010 to 2013
2010 Most Generous
Companies
(75th Percentile)+3% +4%
2010 Least Generous
Companies
(25th Percentile)-3% +1%
30
The Most Generous Companies in 2010 Realized
Strong Business Returns from 2010 to 2013
“A high-quality measurement process is a critical input for good
management and demonstrates that a company recognizes how its
philanthropic strategies can be successful in creating long-term
business value” (p. 62).
—Terence Lim, Measuring the Value of Corporate Philanthropy, 2010
Note: Company generosity established by quartiles. The Top Quartile is the value of the data point below which three-quarters of the
data lie when ranked in ascending order (using Giving as a % of Total Revenue). The Bottom Quartile is the value of the data point
below which one-quarter of the data lie when ranked in ascending order (using Giving as a % of Total Revenue). N=68.
Key Takeaways:
• A majority of companies have increased their giving since 2010, driven by strong business performance and a focus on non-cash gifts.
• Employees have taken center stage in the CSR field as CEOs identify staff as the most influential stakeholder group.
• A majority (76%) of companies are measuring the societal value of their corporate contributions.
• The most generous companies have done better financially than their less generous peers since 2010.
31
33
Communications (n=11) Consumer Discretionary (n=34) Consumer Staples (n=25)
AOL (2) ADT Corporation (1) Altria Group, Inc. (12)
AT&T Inc. (3) Amway Global (2) Anheuser-Busch InBev (3)
DIRECTV, LLC (7) Apollo Education Group (3) BJ’s Wholesale Club, Inc. (1)
Discovery Communications, Inc. (2) Best Buy Co., Inc. (8) Brasil Foods (1)
Ogilvy & Mather (8) Carlson (12) Cargill (9)
Pearson plc (9) CarMax, Inc. (1) The Clorox Company (2)
Sprint Corporation (8) Darden Restaurants, Inc. (4) The Coca-Cola Company (12)
Time Warner Inc. (13) eBay Inc. (4) Colgate-Palmolive Company (7)
Verizon Communications Inc. (11) Ecolab Inc. (3) CVS Caremark Corporation (10)
Vodafone Group Plc (4) Gap Inc. (11) FEMSA (1)
The Walt Disney Company (9) General Motors Company (2) General Mills, Inc. (9)
Hasbro, Inc. (13) The Hershey Company (10)
The Home Depot, Inc. (12) The Hillshire Brands Company (2)
Honda North America (3) Kellogg Company (2)
J. C. Penney Company, Inc. (8) Kimberly-Clark Corporation (8)
JM Family Enterprises, Inc. (4) The Kroger Co. (2)
Johnson Controls, Inc. (5) Land O'Lakes, Inc. (1)
KPMG LLP (11) McCormick & Company, Incorporated (4)
Macy’s, Inc. (8) Newman’s Own (2)
Marriott International, Inc. (3) PepsiCo (9)
Masco Corporation (4) Philip Morris International (5)
Mattel, Inc. (10) Procter & Gamble Company (5)
MGM Resorts International (1) S.C. Johnson & Son, Inc. (2)
Mitsubishi Corporation (Americas) (9) Target (12)
Newell Rubbermaid Inc. (4) Wal-Mart Stores, Inc. (10)
PricewaterhouseCoopers LLP (4)
Sabre Holdings (5)
Southwest Airlines Co. (3)
Starbucks Coffee Company (4)
Starwood Hotels & Resorts Worldwide, Inc. (6)
Toyota Motor North America, Inc. (12)
Under Armour, Inc. (1)
United Stationers Inc. (1)
Yum! Brands, Inc. (3)
Giving in Numbers Participant List
34
Giving in Numbers Participant List
Energy (n=14) Financials (n=55) Financials (Continued)
Chesapeake Energy Corporation (4) Allstate Insurance Company (9) MetLife, Inc. (10)
Chevron Corporation (13) American Express (9) Morgan Stanley (12)
CITGO Petroleum Corporation (4) Ameriprise Financial, Inc. (3) Mutual of Omaha Insurance Company (1)
ConocoPhillips (8) AXA Equitable (6) Nationwide Insurance (3)
Devon Energy Corporation (1) Banco Bilbao Vizcaya Argentaria, S.A. (6) Neuberger Berman (3)
Exxon Mobil Corporation (8) Bank of America Corporation (13) New York Life Insurance Company (6)
Halliburton (8) Barclays (4) Northern Trust Corporation (2)
Hess Corporation (7) BNY Mellon (9) Northwestern Mutual (4)
Peabody Energy Corporation (5) Capital One Financial Corporation (6) NYSE (9)
Phillips 66 (1) The Charles Schwab Corporation (2) PIMCO (1)
Shell Oil Company (11) Citigroup Inc. (11) The PNC Financial Services Group, Inc. (9)
Spectra Energy (2) Citizens Bank (8) Popular, Inc. (5)
Total S.A. (2) Credit Suisse (3) Principal Financial Group (8)
TransCanada Corporation (2) CSAA Insurance Group (2) Prudential Financial, Inc. (10)
Deutsche Bank (9) Royal Bank of Canada (4)
First Niagara Financial Group, Inc. (2) State Farm Mutual Automobile Insurance Company (10)
Genworth Financial, Inc. (7) Thrivent Financial for Lutherans (1)
The Goldman Sachs Group, Inc. (11) The Travelers Companies, Inc. (8)
The Guardian Life Insurance Company of America (5) U.S. Bancorp (3)
The Hartford (7) UBS (7)
HSBC Bank USA, N.A. (10) Unum Group (1)
JPMorgan Chase & Co. (13) Vanguard (2)
KeyCorp (3) Visa Inc. (1)
Lincoln Financial Group (3) Voya Financial, Inc. (7)
Macquarie Group (3) Wells Fargo & Company (12)
Marsh & McLennan Companies, Inc. (4) The Western Union Company (8)
Massachusetts Mutual Life Insurance Company (6) Weyerhaeuser Company (3)
MasterCard Worldwide (9)
35
Giving in Numbers Participant List
Health Care (n=26) Industrials (n=26) Materials (n=18)
Abbott (8) BAE Systems, Inc. (2) 3M (10)
Aetna Inc. (12) The Boeing Company (7) Alcoa Inc. (9)
Agilent Technologies, Inc. (10) Caterpillar Inc. (6) Ashland Inc. (4)
Amgen Inc. (4) CH2M Hill Companies, Ltd. (1) Bemis Company, Inc. (2)
BD (8) Crane Co. (10) The Dow Chemical Company (10)
Boston Scientific Corporation (3) CSX Corporation (5) DuPont (6)
Bristol-Myers Squibb Company (13) Cummins Inc. (3) FMC Corporation (5)
Cardinal Health, Inc. (7) Eaton Corporation (5) Gerdau (2)
CIGNA (5) Emerson Electric Co. (9) International Paper Company (2)
DaVita Inc. (5) FedEx Corporation (6) MeadWestvaco Corporation (3)
Eli Lilly and Company (13) Fluor Corporation (2) Monsanto Company (2)
Express Scripts, Inc. (5) General Electric Company (12) The Mosaic Company (5)
GSK (12) Itron (1) Novelis, Inc. (1)
HCA Inc. (9) John Deere (4) Owens Corning (3)
Humana Inc. (5) Lockheed Martin Corporation (7) Praxair, Inc. (5)
Johnson & Johnson (11) Meritor, Inc. (8) The Sherwin-Williams Company (2)
Kaiser Permanente (3) Northrop Grumman Corporation (7) Vale (3)
McKesson Corporation (10) PACCAR Inc (4) Vulcan Materials Company (4)
Medtronic, Inc. (5) Raytheon Company (4)
Merck (10) Rockwell Automation, Inc. (3)
Novo Nordisk A/S (2) Rockwell Collins, Inc. (4)
Pfizer Inc (11) Union Pacific Corporation (4)
Quest Diagnostics Incorporated (5) United Technologies Corporation (11)
Sabin (1) UPS (3)
UnitedHealth Group (8) Votorantim Group (2)
WellPoint, Inc. (8) Xylem (3)
36
Giving in Numbers Participant List
Technology (n=31) Utilities (n=21)
Accenture (9) Ameren Corporation (1)
Adobe (7) American Electric Power Company, Inc. (4)
Alcatel-Lucent (1) Arizona Public Service Company (3)
Applied Materials, Inc. (5) CenterPoint Energy, Inc. (1)
Autodesk, Inc. (2) Consolidated Edison, Inc. (13)
BMC Software (10) Dominion Resources, Inc. (4)
Booz Allen Hamilton Inc. (1) DTE Energy Company (2)
CA Technologies (7) Duke Energy Corporation (9)
Cisco Systems (13) Entergy Corporation (9)
Corning Incorporated (3) Exelon Corporation (7)
Dell Inc. (8) FirstEnergy (5)
EMC Corporation (4) NRG Energy (1)
Google Inc. (4) Pepco Holdings, Inc. (2)
IBM Corporation (13) PG&E Corporation (9)
IHS Inc. (1) PNM Resources, Inc. (7)
Intel Corporation (7) PPL Corporation (2)
McGraw Hill Financial (12) Public Service Enterprise Group Incorporated (6)
Microsoft Corporation (7) Sempra Energy (8)
Moody’s Corporation (9) Southern California Edison (9)
Motorola Solutions, Inc. (2) Southern Company (3)
NVIDIA Corporation (2) TECO Energy, Inc. (5)
Pitney Bowes Inc. (7)
Qualcomm Incorporated (8)
salesforce.com (9)
Samsung Electronics America, Inc. (4)
SAP AG (2)
Symantec Corporation (5)
Synopsys, Inc. (2)
Texas Instruments Incorporated (6)
Toshiba America, Inc. (2)
Xerox Corporation (9)
