Corporate Giving Fighter Mom Friday WorkshopMay 9, 2008
Corporate Giving • The McGraw-Hill Companies: Our Business
Corporate Giving Education Financial Services Information & Media
Corporate Giving Transition of MHP Corporate Giving Corporate Contributions and Community Relations: Strategic Philanthropy, Collaboration, Leveraging skills, Employee Engagement Contributions Office: Formalizing of grantmaking Broad support for civic, educational & cultural needs MHP Foundation: Ad-hoc funding/general support; mirrored McGraw family giving, i.e. literacy; little business unit interaction 1950’s-1970’s 1970’s-1990’s 1990’s-Present
Corporate Giving MHP Funding Focus • Economic empowerment & Financial Literacy • Best reflects who we are as a corporation • Maximizes opportunities for alignment with business objectives. • Maximizes our impact. • Builds deeper/more sustainable partnerships.
Corporate Giving MHP Direct Grant Partnerships
Corporate Giving • What Drives Corporate Giving?
Corporate Giving Strategic Philanthropy “The best way to keep philanthropy vibrant, well regarded, and well funded in a corporation is to demonstrate its regular contributions to business success. That means that good corporate philanthropy incorporates both business interest and societal need. To find those areas of confluence requires knowing a company's businesses, as well as its customers, competitors, markets, and driving forces.” Reynold Levy, Give & Take: A Candid Account of Corporate philanthropy • No longer check-book philanthropy • Leverage money, people & product • Aligned with business strengths & objectives • Pro-Bono volunteering aka employee skills-based volunteering • Holistic Philanthropy
Corporate Giving Merrill Lynch helps people in underserved communities around the world gain access to educational opportunities that lead to wealth creation and financial independence. The Citi Foundation is committed to enhancing economic opportunities for underserved individuals and families in the communities where we work throughout the world. Microsoft giving programs are designed to help community-based technology learning centers (CTLCs) provide technical skills and resources. Microsoft offers a variety of assistance to these centers including cash, software, teaching materials, and technical expertise. The Merck Company Foundation supports Improving access to quality health care and the appropriate use of medicines and vaccines and Building capacity in the biomedical and health sciences
Corporate Giving • Behind the Scenes
Corporate Giving Typesof grantmakers The Council on Foundations defines the two types of grantmakers as follows: • Corporate Foundation: A corporate (company-sponsored) foundation is a private foundation that derives its grantmaking funds primarily from the contributions of a profit-making business. The company-sponsored foundation often maintains close ties with the donor company, but it is a separate, legal organization, sometimes with its own endowment, and is subject to the same rules and regulations as other private foundations. • Corporate Giving Program: A corporate giving (direct giving) program is a grantmaking program established and administered within a profit-making company. Gifts or grants go directly to charitable organizations from the corporation. Corporate foundations/giving programs do not have a separate endowment; their expense is planned as part of the company's annual budgeting process and usually is funded with pre-tax income.
Corporate Giving Types of Grantmakers cont’d. • Community Foundations: A community foundation is a tax-exempt, nonprofit, autonomous, publicly supported, philanthropic institution composed primarily of permanent funds established by many separate donors of the long-term diverse, charitable benefit of the residents of a defined geographic area. Foundations provide an array of services to donors who wish to establish endowed funds without incurring the administrative and legal costs of starting independent foundations. • Family Foundations: “Family foundation" is not a legal term, and therefore, it has no precise definition. They are often foundations whose funds are derived from members of a single family. At least one family member must continue to serve as an officer or board member of the foundation. Most family foundations concentrate their giving locally, in their communities. • Operating Foundations: Also called private operating foundations, operating foundations are private foundations that use the bulk of their income to provide charitable services or to run charitable programs of their own. They make few, if any, grants to outside organizations. The Carnegie Endowment for International Peace and the Getty Trust are examples of operating foundations. • Private Foundations: A nongovernmental, nonprofit organization with funds (usually from a single source, such as an individual, family or corporation) and program managed by its own trustees or directors, established to maintain or aid social, educational, religious or other charitable activities serving the common welfare, primarily through grantmaking. • Public Foundations: Public foundations, along with community foundations, are recognized as public charities by the IRS. Although they may provide direct charitable services to the public as other nonprofits do, their primary focus is on grantmaking. • Donor Advised Funds: A fund held by a community foundation where the donor, or a committee appointed by the donor, may recommend eligible charitable recipients for grants from the fund. The community foundation's governing body must be free to accept or reject the recommendations.” Sources: Council on Foundations & The Giving Forum
Corporate Giving Nuts & Bolts • Funds for Corporate-based giving programs typically originate from a percentage of pre-tax net income (PTNI) • PTNI Industry Standard is 2% approximately • Recipient must be a 501(c)3 or operating under an umbrella 501(c)3 • Typically targeted to communities and markets that business serves. • Programs are housed in variety of difference departments, e.g., HR, Corporate Affairs, etc. • Corporate Contributions ≠ Corporate Responsibility
Corporate Giving Making the ask • Corporate Giving Officer, Contributions Manager, etc. • Learn a little about the business and a lot about its giving program • First focus locally • Follow instructions • Leverage personal relationships, but…
Corporate Giving Turning a “no” into a “yes” • Employee Giving Programs (aka dollars for doers/dollars for donors): • Matching Gift • Annual Giving Campaigns • Employee Volunteer Grant • Global Day of Service • Volunteers • Participation in events, e.g. runs • Board Service • Pro-Bono & Capacity Building support, e.g., marketing or PR guidance • Products and other in-kind support (See Tip #30) • Space • Underwriting events &/or costs, e.g., food, t-shirts • Auction items
Corporate Giving Where can I get more information? • Fundraising for Social Change, Kim Klein • Council on Foundations, e.g., “About Philanthropy.” • Foundation Center, e.g., “Foundations Today Tutorial.” • Forum of Regional Associations of Grantmakers, e.g., “Understanding Philanthropy.” • OnPhilanthropy.com (Changing Our World) • Chronicle on Philanthropy • BoardNet USA (Volunteer Consulting Group) • Grantwriting workshops, e.g., Hostos Community College